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Azbil Receives “A+” Issuer Rating from Rating and Investment Information

TOKYO, Oct. 29, 2020: Azbil Corporation (Tokyo Stock Exchange code: 6845) announced that its issuer rating^*1 by Rating and Investment Information, Inc. was raised to “A +” on October 16, 2020.

Name	Rating	Rating outlook
Issuer rating	A → A+	Stable

To increase the value provided to customers and the profitability of its business, and to realize sustainable growth and improvement of corporate value, Azbil has set “contributing ‘in series’ to the achievement of a sustainable society” as one of its guiding principles, and is developing three life-cycle solutions businesses for customers and society—Building Automation, Advanced Automation for factories and plants, and Life Automation for essential services and health.

In addition, Azbil is developing systems to support sustainable growth and is developing its human resources (through its health and well-being management^*2). To assure the reliable provision of value to its customers over the long term even in the event of a natural disaster or an event like the recent COVID-19 pandemic, Azbil engages in business continuity planning (BCP), maintains a strong financial structure, and strengthens and diversifies its sources of funds.

The stated reason for the rating upgrade was that “Stable earnings sources, such as maintenance services, have been expanding, allowing the company to generate solid profits even under strong stress. The credit rating agency has upgraded the Issuer Rating from A to A+, positively evaluating progress in strengthening the earnings base.” Azbil’s financial base itself, including factors such as a good debt-equity structure and good balance between debt and cash flow, was also rated highly. Obtaining an “A+” rating is seen as one of the results of the company’s efforts toward sustainable growth.

In addition to obtaining the new issuer rating, in order to prepare for unpredictable situations like the COVID-19 pandemic, and to have the ability to raise funds quickly in response to changes in the business environment, Azbil is announced that it has newly established a commercial paper^*3 program, which recently received an “a-1” rating from the credit rating agency, reflecting Azbil’s fundamental creditworthiness.

Name	Issuance limit	Collateral/Guarantee, guaranteeing company, etc.	Rating
Commercial paper	20 billion yen	Unsecured	a-1 (new)

For details on the rationale of the new ratings, please refer to the press release in the “Rating Actions & Comments” section of the following website.

Rating and Investment Information, Inc.

https://www.r-i.co.jp/en/index.html

Guided by its philosophy of “human-centered automation,” the azbil Group aims to contribute “in series” to the achievement of a sustainable society, as well as securing its own sustainable growth. Azbil strives to enhance its profitability and improve its financial base.

^*1 An issuer rating is the credit rating agency’s evaluation of the company’s ability to perform contractually for all financial obligations owed by the issuer. For rating symbols and definitions of issuer ratings by Rating and Investment Information, Inc., please visit the following website.
https://www.r-i.co.jp/en/rating/about/definition.html

^*2 To promote a healthy and lively workforce, the azbil Group takes a comprehensive people-centric management approach called “health and well-being management,” encouraging new ways of working that improve the work environment by reducing total working hours and preventing harassment, and promoting diversity in order to respect each individual’s personality and make the best use of his or her characteristics. An “azbil Group Health and Well-being Declaration” was made in July 2019.

^*3 Commercial paper is an unsecured discounted promissory note with a term of less than one year which is issued by a company to raise short-term funds from the open market (with wide participation by business corporations, public corporations, etc., in addition to financial institutions). Recently, paperless issuance has become mainstream, and is classified legally as “short-term corporate bonds.”

* Posted information is accurate as of the date of announcement.