The yield premium on the utility’s ￥30 billion offering of 0.526 percent three-year notes was at 52 basis points on March 1, according to JS Price. The sale was priced in October last year at a 42 basis point spread, Bloomberg data show.
Kyushu Electric forecast its net loss to widen to ￥365 billion this fiscal year from ￥166 billion a year earlier, it said in a statement on Jan. 30. That would be the biggest shortfall since at least the year ended March 1995, according to Bloomberg data.
Even so, the utility’s credit outlook in the long run may be more positive after Abe took over. Hiroyuki Hosoda, an executive in the LDP, said in an interview with Bloomberg in November last year that Japan must restart its plants quickly after confirming they are safe, citing increasing energy prices.
“The regulatory framework is fundamentally supportive of the industry, from the long-term perspective,” Moody’s said in its report last month.