Sumitomo Mitsui Financial Group Inc. (Holding Company); Sumitomo Mitsui Banking Corp. (Lead Bank)

Stable outlooks on SMBC Group's nonoperating holding company, Sumitomo Mitsui Financial Group Inc. (SMFG), its lead bank, Sumitomo Mitsui Banking Corp. (SMBC), and the group's core banking subsidiaries reflect our expectation that the entities will maintain stable credit profiles for the coming two years. This reflects our view that a likelihood of government support in times of need will underpin their creditworthiness. The outlook also reflects our view that for the next two years the group will maintain entity-specific factors--such as its solid business foundation, funding base, and strong liquidity--in a stable manner. We might consider upgrading SMFG and its core banking subsidiaries if: We raise our sovereign credit rating on Japan and believe the group can maintain its asset

... in domestic market will likely support SMBC Group's revenue stability. We expect Sumitomo Mitsui Banking Corp. (SMBC) Group, as the largest-class banking group in Japan, to remain highly competitive in the domestic commercial banking and retail banking markets. In addition, the group has established a well-balanced business portfolio with expansion of overseas business. We believe SMBC Group will maintain its well-balanced business portfolio in coming years while expanding its overseas businesses. We expect the balance between the group's capital and risk assets to remain adequate in the next one to two years. The group's investments for growth will likely raise its risk-weighted assets. However, we expect our risk-adjusted capital (RAC) ratio for SMBC Group to remain adequate at about 7.0%-7.5% over the next year or two, thanks to constantly...

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