Japan-Based ORIX Corp. Outlook Revised Down To Negative On Announced Acquisitions; Ratings Affirmed

We believe ORIX Corp.'s acquisition of NXT Capital and its investment in a 30% stake in Avolon Holdings will push up the company's overall business risk, which may outweigh the potential benefits of the deals. We are revising to negative from stable the outlook on our long-term issuer credit rating on ORIX and affirming the rating at 'A-'. ORIX's risk-adjusted capital will deteriorate on these acquisitions, but it will maintain strong capitalization relative to its risk, in our opinion. TOKYO (S&P Global Ratings) Aug. 10, 2018--S&P Global Ratings today said it has revised to negative from stable the outlook on its long-term issuer credit rating on Japan-based general finance company ORIX Corp. At the same time, we have affirmed our

...+ We believe ORIX Corp.'s acquisition of NXT Capital and its investment in a 30% stake in Avolon Holdings will push up the company's overall business risk, which may outweigh the potential benefits of the deals. + We are revising to negative from stable the outlook on our long-term issuer credit rating on ORIX and affirming the rating at 'A-'. + ORIX's risk-adjusted capital will deteriorate on these acquisitions, but it will maintain strong capitalization relative to its risk, in our opinion. TOKYO (S&P Global Ratings) Aug. 10, 2018--S&P Global Ratings today said it has revised to negative from stable the outlook on its long-term issuer credit rating on Japan-based general finance company ORIX Corp. At the same time, we have affirmed our issuer credit rating and all of our issue ratings on ORIX (see list below). The outlook revision reflects our view that ORIX's overall business risk would increase after it carries out its announced acquisitions of a 100% stake in NXT Capital Inc. (##-/Watch...

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