SoftBank questions S&P after it cuts rating deeper into junk

S&P Global Ratings cut SoftBank Group Corp’s long-term rating deeper into junk territory on Tuesday, leading the Japanese tech investment conglomerate to question the downgrade.

S&P lowered SoftBank’s rating to BB from BB-plus, citing SoftBank’s exposure to unlisted companies that are susceptible to changes in the external environment.

“There is a marked lack of rationality in the explanation,” SoftBank Chief Financial Officer Yoshimitsu Goto told Reuters.

SoftBank has sold down assets, including its stake in Chinese e-commerce giant Alibaba Group Holding Ltd to stabilise its balance sheet as the value of its portfolio falters.