The stable outlook on the ratings on Aozora Bank Ltd. reflects our view that the balance between its business position and capital and earnings will remain at a level commensurate with the current ratings over the medium term. Standard&Poor's Ratings Services holds this view because the bank has been controlling its risks at a manageable level. In addition, as we assess the bank's stand-alone credit profile (SACP)--which excludes the factor of extraordinary support--at the current 'bbb+' level and, at the same time, view the likelihood of government support to Aozora Bank as "moderately high," the rating outlook on the bank is not directly affected by the negative outlook on the sovereign rating on Japan (AA-/Negative/A-1+). We may consider
