FINANCIAL INSTITUTIONSISSUER COMMENT 19 April 2016RATINGSSOFTBANK GROUP CORP. (9984: TOKYO) Moodys SR Unsecured Rating Ba1Moodys Outlook STABond-Implied Rating Ba1CDS-Implied Rating Ba2EDF-Implied Rating B1As of April 15, 2016ContactsAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research,Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products.For further detail, please see the last page.Market Signals ReviewSoftBank Group Corp.: Market-Implied Ratings Rally Recently The CDS-, EDF-, and bond-implied ratings for SoftBank all improved from their levels 90 days ago.The companys CDS-implied rating is Ba2, higher by two notches from three months ago (Figure 1). This market-implied rating slipped to B2 for several days in January and February 2016.The EDF'-implied rating was observed at a low point of B2 on several dates over the 90 day period. However it has now ascended to B1, one notch above its level of three months ago.On January 15, the bond-implied rating was Ba2. It softened to Ba3 for several dates but has now advanced to Ba1.In comparison to their levels one year ago, the CDS-implied rating is one notch lower, the EDF-implied rating is two notches higher, and the bond-implied rating is unchanged.FIGURE 1. SOFTBANK: MOODYS AND MARKET-IMPLIED RATINGS, 90 DAYS (DAILY DATA)MOODY'S ANALYTICS FINANCIAL INSTITUTIONS2 19 April 2016 Market Signals Review: SoftBank Group Corp.: Market-Implied Ratings Rally RecentlyAccording to our ratings gap-conditioned transition matrices, companies rated Ba1 with a bond-implied rating of Ba1 outperformed the broad market 41% of the time over the following 12 months, matched the markets performance 13% of the time, and underperformed the broad market 47% of the time.Readers will recall that when a market-implied rating rises the underlying securities have outperformed the broad market.1Over the last three months, ...
