...Strengths: Weaknesses: + Strong business position backed by a leading market position in Japan + Strong liquidity and stable funding backed by a large retail deposit base + High likelihood of extraordinary government support if needed + Continued decline in net interest margins on domestic loans because of a tough competitive environment + Weak retail deposit base to cover funding needs for expanding overseas assets Outlook S&P Global Ratings' outlooks on Sumitomo Mitsui Financial Group Inc. (SMFG) and Sumitomo Mitsui Banking Corp. (SMBC), the group's core banking subsidiary, are positive. The outlooks reflect our view that we could also raise our issuer credit ratings on SMFG and its core banking subsidiaries--which incorporate our assessment of potential extraordinary government support--in the next two years if we raise our long-term sovereign rating on Japan. We view SMFG's unsupported group credit profile (GCP) as stable while the outlook on Japan's sovereign rating is positive. Conversely,...
