TOKYO (Standard&Poor's) July 31, 2012--Major Japanese banks have increasingly set their sights on overseas markets, particularly in Asia, to offset low profitability and weak loan demand in their domestic market, according to an article published by Standard&Poor's Ratings Services. Banks such as Sumitomo Mitsui Financial Group Inc. (SMFG; A/Negative/A-1), Mitsubishi UFJ Financial Group Inc. (MUFG; A/Stable/--), and Mizuho Financial Group Inc. (Mizuho FG; A/Negative/--) have been snapping up assets amid the eurozone debt crisis to expand their overseas businesses. Despite their overseas ventures, Japanese banks' risk profiles are unlikely to change significantly, in our view. "The major banks are currently focusing on Japanese corporates that operate in overseas markets or on high-credit-quality corporates based mainly in
