The ratings on ORIX Corp. (ORIX; A-/Stable/--) reflect its solid business profile in Japan, which is made up of diverse operations, and diversified financing methods. At the same time, the ratings are tempered by high concentration risk in volatile real estate-related exposures and vulnerability to market turmoil due to its high dependence on market financing. 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 including leasing, corporate lending, real estate-related businesses, and investment banking. ORIX's profitability has remained favorable, backed by its business diversification, abundant experience, and sound risk management policies. The company continues to take
