TOKYO (Standard&Poor's) Jan. 7, 2010--Standard&Poor's Ratings Services today said that its ratings on Sumitomo Mitsui Financial Group Inc. (SMFG; A/Stable/A-1) and its group companies would be unaffected by SMFG's announcement yesterday that it will increase its capital by issuing common stock up to approximately ¥900 billion (based on today's stock price) through a public offering and acquiring preferred securities of up to approximately ¥220 billion through a tender offer. Although a capital increase through the issuance of common stock, which is deemed high-quality capital by Standard&Poor's, would be a positive factor, it is unlikely to directly affect the ratings on SMFG and its group companies, given the continued difficult business environment. The capital increase,
