Strong positions in specific areas, such as real estate finance and derivative products targeted at regional financial institutions Stable interest margins and relatively high profitability thanks to growth of overseas lending amid narrowing spreads in the domestic market Dependence on wholesale financial market rather than deposits for foreign-currency funding 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 that there is an over one-in-three chance of a downgrade due to a downward revision in our assessment of
