R&I reiterates Riken Keiki rating

(ADPnews) – May 23, 2011 - Rating and Investment Information (R&I) said it maintained the BBB+ issuer rating of Japanese industrial gas detectors producer Riken Keiki Company Ltd (TYO:7734).

The outlook on the rating is "stable".

The company is leader in the production of industrial gas detectors in Japan and its maintenance and after-sales service operations boast steady profitability. Overall, Riken Keiki's earnings base is stable and its debt-equity structure is sound, the agency said.

While demand is assisted by regulations which require the installation of the equipment and maintenance checks, sales are dependent on customers' decisions regarding capital expenditure, R&I noted. Besides, price competition is intense, the agency added.

R&I said that it would keep a close watch on Riken Keiki's ability to boost its earning base through consolidating its presence abroad and growing in areas such as solar cells and lithium-ion batteries.

Rating agency website: www.r-i.co.jp

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