NEWS RELEASE
Dec 16, 2020 R&I Affirms A-/a-1, Stable: Sega Sammy Holdings Inc.
Rating and Investment Information, Inc. (R&I) has announced the following: ISSUER: Sega Sammy Holdings Inc. Issuer Rating: A-, Affirmed Rating Outlook: Stable
Commercial Paper: a-1, Affirmed
RATIONALE: Sega Sammy Holdings Inc. is a holding company that owns Sammy Corp., a major manufacturer of pachislot and pachinko machines, and the Sega group, which engages in planning and development of game software and amusement machines. The rating reflects the creditworthiness of the Sega Sammy Group. The pachislot and pachinko machines business, an earnings driver, has one of the highest development and sales capabilities in the industry. Although the business environment is challenging, its competitiveness remains strong enough to capture demand from replacement of machines for regulatory compliance. The entertainment contents business handled by the Sega group generates certain profits mainly from the game business. In the resort business, the company operates resort complexes in Japan and South Korea. In South Korea, it is involved in processes ranging from casino resort planning to on- site operational management through a joint venture which is an equity-method affiliate. Partly because its earnings have been squeezed by the novel coronavirus crisis, Sega Sammy Holdings is expected to post losses for FY2020 (the year ending March 2021). Its earning capacity is below the level required for the rating. To improve profit and cash flow generating capacities, it is essential to increase the sales share of pachislot and pachinko machines and boost profitability through enhanced cost efficiency. With abundant cash on hand, Sega Sammy Holdings has been in a net cash position. Equity capital is ample as well. Its financial base is therefore robust.
The primary rating methodologies applied to this rating are provided at "R&I's Basic Methodology for Corporate Credit Ratings", "Game Software" and "R&I's Analytical Approach to Parent and Subsidiary Companies". 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: Sega Sammy Holdings Inc. (Sec. Code: 6460) Issuer Rating RATING: A-, Affirmed RATING OUTLOOK: Stable
Unsec. Str. Bonds No.5 Issue Date Maturity Date Issue Amount (mn) Oct 10, 2019 Oct 10, 2029 JPY 10,000 RATING: A-, Affirmed
■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc. NEWS RELEASE
Commercial Paper ISSUE LIMIT (mn): JPY 30,000 SUPPORT: Unsecured RATING: a-1, Affirmed
■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc.