Japan-Based Aozora Bank Outlook Revised To Negative On Bleak Profitability Prospects; 'BBB/A-2' Ratings Affirmed

We expect Aozora Bank's financial flexibility to be constrained because of its low profit generating capacity and uncertainties over its operating environment. Aozora Bank intends to resume dividend payouts through a recovery in profit; this may hamper potential improvement in its financial standing. We revised to negative from stable the outlook on Aozora Bank. At the same time, we affirmed our 'BBB' long-term and 'A-2' short-term issuer credit ratings on the Japan-based bank. TOKYO (S&P Global Ratings) March 27, 2024--S&P Global Ratings today said it has revised to negative from stable its outlook on Japan-based Aozora Bank Ltd. At the same time, we affirmed our 'BBB' long-term issuer credit and long-term senior unsecured issue credit ratings and our 'A-2' short-term

...March 27, 2024 - We expect Aozora Bank's financial flexibility to be constrained because of its low profit generating capacity and uncertainties over its operating environment. - Aozora Bank intends to resume dividend payouts through a recovery in profit; this may hamper potential improvement in its financial standing. - We revised to negative from stable the outlook on Aozora Bank. - At the same time, we affirmed our '###' long-term and 'A-2' short-term issuer credit ratings on the Japan-based bank. TOKYO (S&P Global Ratings) March 27, 2024--S&P Global Ratings today said it has revised to negative from stable its outlook on Japan-based Aozora Bank Ltd. At the same time, we affirmed our '###' long-term issuer credit and long-term senior unsecured issue credit ratings and our 'A-2' short-term issuer credit rating on the bank. We revised our outlook on the bank to negative because we believe there is a more than a one-in-three chance that its financial flexibility could weaken further. This...

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