The rating on ORIX Corp. reflects the company's well-established market position in Japan's leasing market, which is supported by its nationwide marketing and distribution network. ORIX's regional and business diversification supports the stability of its performance. The company's funding base is solid, based on its good relationship with numerous financial institutions, including UFJ Bank Ltd. (formerly Sanwa Bank Ltd.) and diversified funding sources. These positive factors are offset by the company's weak profitability and capitalization by international standards. ORIX has been proactive in disposing of bad assets and taking reserves but the company's exposure to the weak domestic real estate sector could result in additional losses in the future. ORIX is the leading and most diversified finance company in Japan.
