Ratings On Japan-Based Aozora Bank Affirmed At 'A-/A-2'; Outlook Remains Negative

In light of Aozora Bank's increasing overseas credit, we have reviewed our ratings on the bank. We have revised downward the anchor for the bank to 'bbb+' from 'a-', based on our view that economic risk in its business base is growing. We have revised our assessment of its business position to adequate from moderate, reflecting our view that it maintains relatively high profitability among banks in Japan. We are affirming the long- and short-term issuer credit ratings at 'A-/A-2'. The outlook remains negative, based on our expectation that there is an over one-in-three chance of a downgrade due to a downward revision in our assessment of its risk position or funding and liquidity within the next two years. TOKYO

...+ In light of Aozora Bank's increasing overseas credit, we have reviewed our ratings on the bank. + We have revised downward the anchor for the bank to '###+' from 'a-', based on our view that economic risk in its business base is growing. + We have revised our assessment of its business position to adequate from moderate, reflecting our view that it maintains relatively high profitability among banks in Japan. + We are affirming the long- and short-term issuer credit ratings at 'A-/A-2'. + The outlook remains negative, based on our expectation that there is an over one-in-three chance of a downgrade due to a downward revision in our assessment of its risk position or funding and liquidity within the next two years. TOKYO (S&P Global Ratings) April 25, 2018--S&P Global Ratings today said that it has affirmed its long-term issuer credit and senior unsecured ratings on Aozora Bank Ltd. at 'A-'. We also affirmed our 'A-2' short-term issuer credit rating on the bank. The outlook on the long-term...

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