Although Aozora Bank Ltd. (BBB+/Stable/A-2) posted net losses in fiscal 2008 (ended March 31, 2009), mainly due to losses on its overseas investments and higher credit costs, the bank has maintained stable profits since fiscal 2009 (ended March 31, 2010). It has achieved this through disposal of risky assets and loss realization. In addition, as of Sept. 30, 2010, the ratio of financing from retail deposits rose to 60%, lifted by an enhanced individual deposit base, which Standard&Poor's Ratings Services views positively from the perspective of liquidity. Aozora Bank's retail banking business is fairly small compared with other Japanese major banks. As for its wholesale banking business, the bank is strong in real estate finance and interest rates,
