Strong position in specific areas in corporate finance and the financial institution business, and retail banking A capital base that has remained commensurate with the current ratings Limited business base compared with Japan's major banks and regional banks with high market shares in specific regions Large exposure to property loans in Japan and abroad, which makes earnings susceptible to changes in the real estate market and business conditions The outlook on the ratings on Aozora Bank Ltd. is stable. It reflects Standard&Poor's Ratings Services' base-case scenario that the bank will be able to manage its potential credit risks and, at the same time, keep its risk-adjusted capital (RAC) ratio (before diversification and concentration adjustments) largely in the 7.5%-8.0%
