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SoftBank's creditworthiness under pressure despite asset sales, says S&P
[TOKYO] SoftBank Group's creditworthiness "remains under pressure" despite moving to shore up its balance sheet by raising up to US$41 billion via asset sales, credit rating firm S&P Global Ratings said on Thursday.
There are questions over SoftBank's intention to adhere to "financial soundness and creditworthiness", S&P said, as the group undertakes an up to 2.5 trillion yen (S$33.24 billion) share buyback programme, aimed at propping up its market valuation as investments via the US$100 billion Vision Fund flounder.
In March, S&P revised its outlook for SoftBank to negative but stopped short of a ratings downgrade.
SoftBank has dropped S&P peer Moody's after it cut the tech conglomerate's rating further into junk territory and questioned the viability of its plan to sell down part of its portfolio.