Aozora Bank 'A-/A-2' Ratings Affirmed, Outlook Still Negative; Stand-Alone Assessment, Government Support Under Pressure

Our stand-alone credit profile (SACP) for Aozora Bank is under pressure because of elevated concentration in its loan portfolio and growing risk stemming from mismatches in assets and liabilities. The possibility of the bank receiving extraordinary government support if needed may shrink, in our view. We are affirming our 'A-' long- and 'A-2' short-term issuer credit ratings on the bank. The outlook remains negative because of downward pressure on the SACP and the prospect of a decline in the likelihood of extraordinary government support if needed. TOKYO (S&P Global Ratings) April 25, 2019--S&P Global Ratings today said it has affirmed its 'A-' long- and 'A-2' short-term issuer credit ratings, and its 'A-' senior unsecured ratings, on Japan-based Aozora Bank Ltd.

...April 25, 2019 - Our stand-alone credit profile (SACP) for Aozora Bank is under pressure because of elevated concentration in its loan portfolio and growing risk stemming from mismatches in assets and liabilities. - The possibility of the bank receiving extraordinary government support if needed may shrink, in our view. - We are affirming our 'A-' long- and 'A-2' short-term issuer credit ratings on the bank. - The outlook remains negative because of downward pressure on the SACP and the prospect of a decline in the likelihood of extraordinary government support if needed. TOKYO (S&P Global Ratings) April 25, 2019--S&P Global Ratings today said it has affirmed its 'A-' long- and 'A-2' short-term issuer credit ratings, and its 'A-' senior unsecured ratings, on Japan-based Aozora Bank Ltd. The outlook on the long-term issuer credit rating remains negative. We affirmed the ratings because the bank maintains stable earnings amid harsh market conditions and because our assessment of the stand-alone...

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