TOKYO (Standard&Poor's) Feb. 12, 2009--Standard&Poor's Ratings Services today lowered by one notch to 'BBB+' its long-term counterparty rating on Aozora Bank Ltd., and by one notch to 'C+' its bank fundamental strength rating on the bank. The downgrade reflects a larger-than-expected erosion of the bank's asset quality and associated deterioration in the balance between risk volume and capital/earnings. The outlook on the long-term rating is stable. At the same time, Standard&Poor's affirmed its 'A-2' short-term counterparty rating on the bank. Aozora Bank has revised its net loss forecast for fiscal 2008 (ending March 31, 2009) substantially downward to ¥196 billion, following a net loss forecast of ¥27 billion in November 2008. Credit costs have
