Strong positions in specific areas, such as real estate finance and derivative products targeted at regional financial institutions Stable interest margins thanks to growth of overseas lending amid narrowing lending spreads in the domestic market Dependence of foreign-currency funding mainly on the wholesale financial market rather than deposits Limited business base compared with Japan's major banks and regional banks with high market shares in specific regions Large exposure to domestic and overseas property loans, which makes earnings susceptible to changes in real estate markets and business conditions The negative outlook on Japan-based Aozora Bank Ltd. reflects S&P Global Ratings' view of an at least a one-in-three chance that it may revise downward by one notch its anchor for banks operating
