Outlooks On Japan's Three Major Banking Groups Revised To Stable As COVID-19 Stalls Credit Gains; Ratings Affirmed

Prolonged downward pressure that the COVID-19 pandemic will put on asset quality and revenues of Japan's three major banking groups lowers the likelihood of upgrades, in our view, even if we raise our sovereign credit rating on Japan. We are revising to stable from positive the outlooks on our long-term issuer credit ratings on 12 core subsidiaries of the MUFG, SMBC, and Mizuho groups, as well as each group's holding company. The stable outlooks reflect our expectations that the entities' credit profiles will remain stable for the coming two years thanks to a likelihood of government support in times of need. TOKYO (S&P Global Ratings) April 24, 2020--S&P Global Ratings today said it has revised to stable from positive the

...April 24, 2020 - Prolonged downward pressure that the COVID-19 pandemic will put on asset quality and revenues of Japan's three major banking groups lowers the likelihood of upgrades, in our view, even if we raise our sovereign credit rating on Japan. - We are revising to stable from positive the outlooks on our long-term issuer credit ratings on 12 core subsidiaries of the MUFG, SMBC, and Mizuho groups, as well as each group's holding company. - The stable outlooks reflect our expectations that the entities' credit profiles will remain stable for the coming two years thanks to a likelihood of government support in times of need. TOKYO (S&P Global Ratings) April 24, 2020--S&P Global Ratings today said it has revised to stable from positive the outlooks on its long-term issuer credit ratings on 12 core subsidiaries of Japan's three major banking groups--the MUFG, SMBC, and Mizuho groups--as well as their holding companies. The holding companies are Mitsubishi UFJ Financial Group Inc. (MUFG),...

Ratings Action