On Aug. 28, 2003, Standard&Poor's Ratings Services raised its rating on Aozora Bank Ltd. to 'BBBpi' from 'BBpi', reflecting progress in the reduction of its nonperforming loans and stabilization in its operating performance. In addition, Aozora's current exposure to the high business risk of its 49% owner, Softbank Corp. will be eliminated along with the sale of Softbank's stake to U.S. investment fund Cerberus. As a result of efforts to reduce the level of nonperforming loans, the ratio of Aozora's risk-managed loans to total assets net of reserves dropped to 0.02% at the end of March 2003, which is one of the lowest among the major Japanese banks. In addition, the previous weakness in the bank's business profile
