TOKYO (Standard&Poor's) Sept. 26, 2006--Standard&Poor's Ratings Services today revised its outlook to positive from stable on its 'BBB+' long-term counterparty rating on Aozora Bank Ltd., reflecting the bank's improving profitability, in addition to its solid capitalization and asset quality. At the same time, the long-term and 'A-2' short-term ratings on the bank were affirmed. Aozora's profitability is improving. Its ratio of core profit to risk assets for fiscal 2005 (ended March 31, 2006) stood at 1.9%, above the average 1.8% for major Japanese banks. The bank's fee income is growing, making it less dependent on interest revenue. The expense ratio for fiscal 2005 was 43%, lower than the average 47% for major banks. Revenue from relatively
