...Amid Japan's economic uncertainties, Fitch Ratings expects corporations to increase their use of debt restructuring, particularly under the business revitalization alternative dispute resolution (ADR) scheme due to its high transparency and efficiency. The agency considers that increased use of the ADR scheme could help major Japanese banks accelerate resolutions of nonperforming loans (NPLs) and reduce losses in debt restructuring due to improved transparency. ADR was introduced in 2007 in accordance with the revised Act on Promotion of Use of Alternative Dispute Resolution. Despite the sharp recession in the financial year to endMarch 2009 (FYE09) and persistently uncertain economic outlook, Japan's major banks have thus far maintained an acceptable level of NPLs, thanks largely to borrowers' strengthened financials, banks' improved risk management, and the government's various safetynet measures. Nevertheless, increasing corporate debt restructuring among various corporate sectors may...
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