ORIX Corp. (ORIX; A-/Negative/--) maintains a solid business profile in Japan, with diverse operations in areas including leasing, corporate lending, real estate-related businesses, and investment banking. ORIX has established a relatively solid customer base in its domestic leasing business, which consists mainly of small and midsize enterprises (SMEs). In addition, the company excels in providing financial products and services. ORIX's profitability has remained favorable, backed by its business diversification, abundant experience, and sound risk management policies. However, given the rapidly worsening business conditions, it is becoming difficult to sustain such profitability due to the adverse impact on its real estate-related operations and private equity investments, which the company had increasingly focused on in the past few years. ORIX's capital adequacy
