Standard & Poor's Corp. said Friday it has assigned a corporate governance score of CGS-7.8 to financial services firm Orix Corp. According to S&P, companies that achieve scores in the CGS-7 and CGS-8 ranges have strong overall corporate governance processes and practices. The maximum possible score is CGS-10.
It is the first time the U.S. rating agency has assigned a score this high to a Japanese company. The agency said the ranking reflects Orix's strong overall governance processes and practices.
"Orix's corporate governance practices are of a good standard and reflect the present chairman's initiative to implement shareholder value-oriented structures and processes in recent years," Hiroko Kiguchi, director of S&P's risk solutions in Tokyo, said in a statement.
The corporate governance score assigned to Orix is part of a new global product offering from S&P's governance unit, the agency said.