(The following was released by the rating agency)
TOKYO (Standard & Poor's) Nov. 20, 2012--Standard & Poor's Ratings Services today assigned its 'A' debt rating to Ricoh Leasing Co. Ltd.'s (A/Negative/A-1) unsecured domestic straight bonds. The JPY20 billion series 14 bonds, due on Nov. 27, 2017, carry a coupon rate of 0.350%.
Ricoh Leasing is a leasing company in the Ricoh group and promotes Ricoh products. Ricoh Leasing has strong capital and management integration with its parent and group entities, as it offers lease financing for a large portion of Ricoh products. The company also carries out cash management operations for the group companies in Japan. We consider Ricoh Leasing a captive finance arm of the Ricoh group in our credit quality analysis, and therefore, the ratings on Ricoh Leasing are equal to those on its parent, Ricoh Co. Ltd. (A/Negative/A-1). Despite its limited business scale, Ricoh Leasing maintains good asset quality, compared with other leasing companies that develop diversified businesses. This is because the company's operating receivables are diversified into small lots and its investment and loan businesses account for only a small portion of its entire business mix. We believe Ricoh Leasing's profitability is relatively sound compared with other rated leasing companies, and its capitalization is adequate relative to its financial risk.
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