This report does not constitute a rating action. TOKYO (S&P Global Ratings) May 20, 2025--S&P Global Ratings today said it will classify Orix Corp.'s (BBB+/Stable/--) proposed subordinated bonds as having intermediate equity content. This follows the May 20, 2025, announcement that the company will issue series 7 subordinated bonds in Japanese yen. We would likely assess the series 7 subordinated bonds as having intermediate equity content until the first call date in 2031. This reflects our views on Orix's intent to absorb losses or conserve cash on a going-concern basis, and the equity-like features of the bonds. Key features include the issuer's option to defer interest payments, a sufficiently long residual time, and subordination in liquidation or bankruptcy proceedings. The
