Japan's Aozora Bank Downgraded To 'BBB+' On Lower Likelihood Of Government Support; Outlook Negative

We have revised down our assessment of Aozora Bank's systemic importance to Japan's financial system, given the bank's size and position in Japanese financial markets, its high proportion of overseas lending, and the time that has lapsed since it fully repaid public funds. We have lowered our assessment of the likelihood of extraordinary government support for the bank after lowering our assessment of the bank's systemic importance. We are lowering our long-term issuer credit rating on Aozora Bank to 'BBB+' and are affirming the 'A-2' short-term issuer credit rating. The negative outlook reflects our view of more than a one-in-three chance we will lower the SACP on the bank within the next two years. TOKYO (S&P Global Ratings) Jan. 24,

...+ We have revised down our assessment of Aozora Bank's systemic importance to Japan's financial system, given the bank's size and position in Japanese financial markets, its high proportion of overseas lending, and the time that has lapsed since it fully repaid public funds. + We have lowered our assessment of the likelihood of extraordinary government support for the bank after lowering our assessment of the bank's systemic importance. + We are lowering our long-term issuer credit rating on Aozora Bank to '###+' and are affirming the 'A-2' short-term issuer credit rating. + The negative outlook reflects our view of more than a one-in-three chance we will lower the SACP on the bank within the next two years. TOKYO (S&P Global Ratings) Jan. 24, 2020--S&P Global Ratings today said it has lowered to '###+' from 'A-' its long-term issuer credit and senior unsecured issue credit ratings on Aozora Bank Ltd. We have affirmed the 'A-2' short-term issuer credit rating on the bank. The outlook on...

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