TOKYO (Standard&Poor's) June 22, 2007--Standard&Poor's Ratings Services today assigned its 'BBB+' rating to Aozora Bank Ltd.'s (A-/Stable/A-2) U.S. dollar-denominated step-up callable dated subordinated 10-year notes maturing in July 2017. The notes are redeemable in whole after five years or on any interest payment date subject to the prior approval of the Financial Services Agency of Japan. The rating on the subordinated notes is one notch lower than the long-term counterparty credit rating on Aozora, reflecting the notes subordination. The ratings on Aozora reflect the bank's improved profitability and sound capital structure and asset portfolio. These strengths are offset by Aozora's business franchise, which is weak compared with that of its peers. In September 2000, Aozora gained
