Okaya & Co., Ltd.: R&I Affirms A-, Stable

NEWS RELEASE

Jan 19, 2018

R&I Affirms A-, Stable: Okaya & Co., Ltd.

Rating and Investment Information, Inc. (R&I) has announced the following:

ISSUER:

Okaya & Co., Ltd.

Issuer Rating: A-, Affirmed Rating Outlook: StableRATIONALE:

Okaya & Co., Ltd. is a specialized trading firm mainly handling iron and steel, and industrial materials such as mechatronics-related, chemical and resin products. The firm is based in the Tokai region. Its management stance is prudent as typified by a margin-focused sales policy, and the customer base consists of many leading companies including Toyota Group companies. Okaya is also characterized by its capability of offering a full range of materials used at manufacturing sites, from materials to machinery and equipment, systems, tools and buildings. Although earnings are susceptible to capital investment trends and production activities in the manufacturing sector, a certain level of resilience to recessions is maintained thanks to its well-developed purchasing and sales bases. A large part of trade receivables are from blue-chip companies with high creditworthiness, and credit management is prudent. Moreover, transactions entailing inventory risk are few. Debt is not small, but matches the size of working capital. Reflecting profit accumulation over the past several years, the debt-equity structure is sound for the rating.

The primary rating methodologies applied to this rating are provided at "R&I's Basic Methodology for Corporate Credit Ratings" and "Specialized Trading Firms and Wholesalers". The methodologies are available at the web site listed below, together with other rating methodologies that are taken into consideration when assigning the rating.

https://www.r-i.co.jp/en/rating/about/rating_method.html

R&I RATINGS:

ISSUER:	Okaya & Co., Ltd. (Sec. Code: 7485)
Issuer Rating
RATING:	A-, Affirmed
RATING OUTLOOK:	Stable

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