Panasonic Corp. (6752) bonds went from last year's worst performers to the best of 2013, as President Kazuhiro Tsuga avoided a junk debt rating by shrinking television and handset businesses.
The notes topped the return rankings in the year to Dec. 23, gaining 6.5 percent, after placing last in 2012 with a 4.1 percent loss, Bank of America Merrill Lynch data show. That compares with a 4.1 percent increase for Kansai Electric Power Co., the second-best performer since Dec. 31, and a 1.7 percent average gain for Japanese corporate bonds. Bonds of technology companies worldwide declined 1.3 percent in the period.
Panasonic's honed focus on electronics for running homes and automobiles more effectively was cited by Moody's Investors Service when it upgraded the outlook on the company's Baa3 rating, the lowest investment grade, to stable from negative on Dec. 18. The Osaka, Japan-based manufacturer has cut about 71,000 jobs since 2011 and is shutting down production of plasma televisions to focus on car safetyClass X capacitors are used in "across-the-line" applications where their failure would not lead to electric shock. Class X safety caps are used between the "live" wires carrying the incoming AC current. In this position, a capacitor failure should not cause any electrical shock hazards, rather, a capacitor failure "between-the-lines" would usually cause a fuse or circuit breaker to open. devices, such as 360-degree view camera systems and power packs for electric cars.
"We are seeing results from the first stage of Panasonic's restructuring in such areas as panels and smartphones," said Takao Matsuzaka, a credit analyst in Tokyo at Daiwa Securities Co. "They are putting resources into areas with relatively stable profits."
