Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content - S&P Global Ratings’ Credit Research

Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content

Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content - S&P Global Ratings’ Credit Research
Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content
Published May 25, 2016
4 pages (1677 words) — Published May 25, 2016
Price US$ 150.00  |  Buy this Report Now

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Abstract:

TOKYO (S&P Global Ratings) May 25, 2016--S&P Global Ratings today said it has assigned its 'BBB' long-term issue rating to Japan-based ORIX Corp.'s (A-/Negative/--) unsecured subordinated hybrid loans. The loans have two tranches. To arrive at our 'BBB' issue rating on the loans, we notched down from the company's 'a-' stand-alone credit profile (SACP) by two notches. The two-notch differential reflects our notching methodology, which calls for the following deductions to be made for the loans' characteristics: one notch for subordination in liquidation or bankruptcy proceedings and an additional notch for the issuer's option to defer interest payment. Given that the loans have a third characteristic of sufficient permanence, we think they meet our standards for intermediate equity content of

  
Brief Excerpt:

...TOKYO (S&P Global Ratings) May 25, 2016--S&P Global Ratings today said it has assigned its '###' long-term issue rating to Japan-based ORIX Corp.'s (A-/Negative/--) unsecured subordinated hybrid loans. The loans have two tranches. To arrive at our '###' issue rating on the loans, we notched down from the company's 'a-' stand-alone credit profile (SACP) by two notches. The two-notch differential reflects our notching methodology, which calls for the following deductions to be made for the loans' characteristics: one notch for subordination in liquidation or bankruptcy proceedings and an additional notch for the issuer's option to defer interest payment. Given that the loans have a third characteristic of sufficient permanence, we think they meet our standards for intermediate equity content of hybrid capital instruments. We classify the loans as having intermediate equity content until their respective first call dates in 2021 for tranche A and in 2023 for tranche B. We consider that a drawdown...

  
Report Type:

Ratings Action

Ticker
8591@JP
Issuer
ORIX Corp.
GICS
Other Diversified Financial Services (40201020)
Sector
Global Issuers, Structured Finance
Country
Japan
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content" May 25, 2016. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Japan-Based-ORIX-s-Subordinated-Hybrid-Loans-Rated-BBB-Assessed-As-Having-Intermediate-Equity-Content-1642485>
  
APA:
S&P Global Ratings’ Credit Research. (). Japan-Based ORIX's Subordinated Hybrid Loans Rated 'BBB', Assessed As Having Intermediate Equity Content May 25, 2016. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Japan-Based-ORIX-s-Subordinated-Hybrid-Loans-Rated-BBB-Assessed-As-Having-Intermediate-Equity-Content-1642485>
  
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