Strong positions in specific areas, such as real estate finance and derivative products targeting regional financial institutions Stable interest margins and relatively high profitability thanks to growth of overseas lending as spreads narrow in the domestic market Dependence on wholesale financial markets rather than deposits for foreign-currency funding Limited business presence 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 more than a one-in-three chance it will lower the stand-alone credit profile (SACP) on the bank because of deterioration
