TOKYO -- Just 44 listed Japanese companies issued warnings about future viability in fiscal 2015, the fewest since fiscal 2008, as low interest rates made funding easier to access.
Companies are required to include notes about their status as a going concern in financial reports if deteriorating earnings result in a cash crunch or troubles repaying debt. Three fewer companies did so last fiscal year than in fiscal 2014, with 18 businesses lifting warnings while others, such as Onkyo and Softfront, issued new ones.
Shodensya, which remodels facilities to improve energy efficiency, removed its going-concern warning after returning to profitability in the year ended in March thanks in part to changes to unprofitable projects. Many others coming off the list likely benefited from low interest rates when raising money for restructuring.
Nine companies that had issued warnings in fiscal 2014 were later delisted, removing them from the count. This includes shipping company Daiichi Chuo, which went bankrupt.