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Related Issuers
77 Bank, Ltd. (The)
Bank of Fukuoka, Ltd. (The)
Bank of Yokohama, Ltd. (The)
Chiba Bank, Ltd. (The)
Chugoku Bank, Limited (The)
Custody Bank of Japan, Ltd.
Daishi Bank, Ltd. (The)
Gunma Bank, Ltd. (The)
Hiroshima Bank, Ltd. (The)
Hyakujushi Bank, Ltd. (The)
Japan Post Bank Co., Ltd.
Joyo Bank, Ltd. (The)
Mitsubishi UFJ Trust & Bank Corp., NY Branch
Mitsubishi UFJ Trust & Bank Corp., Singapore
Mitsubishi UFJ Trust and Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd., Cayman Branch
Mizuho Bank, Ltd., Hong Kong Branch
Mizuho Bank, Ltd., New York Branch
Mizuho Bank, Ltd., Paris Branch
Mizuho Bank, Ltd., Singapore Branch
Mizuho Bank, Ltd., Sydney Branch
Mizuho Trust & Banking Co., Ltd.
MUFG Bank, Ltd.
MUFG Bank, Ltd., Auckland Branch
MUFG Bank, Ltd., Hong Kong Branch
MUFG Bank, Ltd., Los Angeles Branch
MUFG Bank, Ltd., New York Branch
MUFG Bank, Ltd., Singapore Branch
MUFG Bank, Ltd., Sydney Branch
Norinchukin Bank
Resona Bank, Limited
Saitama Resona Bank, Limited
San-in Godo Bank, Ltd. (The)
Shinhan Bank Japan
Shinkin Central Bank
Shinsei Bank, Limited
Shizuoka Bank, Ltd. (The)
Shoko Chukin Bank, Ltd. (The)
Sumitomo Mitsui Banking Corp., Brussels Br
Sumitomo Mitsui Banking Corp., Canada Br
Sumitomo Mitsui Banking Corp., Dusseldorf Br
Sumitomo Mitsui Banking Corp., Hong Kong Br
Sumitomo Mitsui Banking Corp., New York Br
Sumitomo Mitsui Banking Corp., Singapore Br
Sumitomo Mitsui Banking Corp., Sydney Br
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Ltd., NY Branch
Sumitomo Mitsui Trust Bank, Ltd., SG Br.
Trust & Custody Services Bank, Ltd.
Rating Action:

Moody's assigns Counterparty Risk Ratings to 28 Japanese banks and branches

 The document has been translated in other languages

21 May 2020

Tokyo, May 21, 2020 -- Moody's Japan K.K. has today assigned Counterparty Risk Ratings (CRRs) to 28 rated Japanese banks and branches.

Today's rating action covers: (1) The 77 Bank, Ltd., (2) The Bank of Fukuoka, Ltd., (3) The Bank of Yokohama, Ltd., (4) The Chiba Bank, Ltd., (5) The Chugoku Bank, Limited, (6) The Daishi Bank, Ltd., (7) The Gunma Bank, Ltd., (8) The Hiroshima Bank, Ltd., (9) The Hyakujushi Bank, Ltd., (10) Japan Post Bank Co., Ltd., (11) Japan Trustee Services Bank, Ltd., (12) The Joyo Bank, Ltd., (13) Mitsubishi UFJ Trust and Banking Corporation, (14) Mizuho Bank, Ltd., (15) Mizuho Trust & Banking Co., Ltd., (16) MUFG Bank, Ltd., (17) Norinchukin Bank, (18) Resona Bank, Limited, (19) Saitama Resona Bank, Limited, (20) The San-in Godo Bank, Ltd., (21) Shinhan Bank Japan, (22) Shinkin Central Bank, (23) Shinsei Bank, Limited, (24) The Shizuoka Bank, Ltd., (25) The Shoko Chukin Bank, Ltd., (26) Sumitomo Mitsui Banking Corporation, (27) Sumitomo Mitsui Trust Bank, Limited, and (28) Trust & Custody Services Bank, Ltd.

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL423269 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

The CRRs assigned to Japanese banks and their respective branches are in line with the Counterparty Risk Assessments (CRA) already assigned. In cases where the standard approach results in a long-term CRA above Japan's sovereign debt rating of A1, Moody's reduced the government support such that the CRA does not exceed Japan's sovereign rating.

Because Moody's considers Japan a jurisdiction with non-operational resolution regime, the rating agency applies its basic Loss Given Failure (LGF) approach in assigning CRRs to the Japanese banks. Moody's basic LGF analysis positions CRRs in line with the banks' CRA, with the latter positioned one notch above the banks' adjusted baseline credit assessments (BCAs), prior to government support.

Furthermore, the CRRs for the Japanese banks and their respective branches also incorporate uplift from government support, also in line with that applied to the banks' CRAs, given Moody's expectation of government support. This reflects the banks' systemic importance to the country.

OUTLOOK

CRRs do not carry outlooks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The 77 Bank, Ltd.

Moody's would consider upgrading 77 Bank's ratings if the bank increases its profitability on a sustained basis without significantly increasing risk, despite the difficult operating environment.

The ratings could be downgraded if 77 Bank's (1) tangible common equity (TCE)/risk-weighted assets (TCE ratio) falls below 8%; (2) profitability weakens further because of rising credit costs or losses from its securities portfolio, or both; (3) asset quality deteriorates; and (4) liquidity weakens because of an increased reliance on market funds or investments in less-liquid assets.

The Bank of Fukuoka, Ltd.

Moody's would consider upgrading Bank of Fukuoka's ratings if the profitability of its parent, Fukuoka Financial Group, Inc., improves on a sustained basis without significantly raising risk, against the backdrop of the difficult operating environment.

The ratings could be downgraded if (1) the group's TCE ratio falls below 9%; (2) profitability weakens further because of rising credit costs or losses from its securities portfolio; (3) asset quality deteriorates; and (4) liquidity weakens because of an increased reliance on market funds or investment in less-liquid assets

The Bank of Yokohama, Ltd.

(Concordia Financial Group, Ltd.)

Moody's would consider upgrading Concordia Financial Group, Ltd. (CFG) and Bank of Yokohama if the subsidiary banks increase their profitability on a sustained basis without significantly raising risk, against the backdrop of the challenging operating environment. A successful restructuring of Higashi-Nippon Bank, Ltd., one of two subsidiary banks along with Bank of Yokohama, resulting in its financial fundamentals improving and approaching those of Bank of Yokohama, will also result in upward rating pressure.

The ratings could be downgraded if (1) CFG's TCE ratio falls below 12% because of a material increase in the bank's credit or market exposure; (2) its profitability further weakens because of rising credit costs, losses from its securities portfolio, or a further decline in Higashi-Nippon Bank's profitability; (3) its asset quality deteriorates; and (4) its liquidity weakens because of an increased reliance on market funds or investments in less liquid assets

The Chiba Bank, Ltd.

Chiba Bank's ratings are unlikely to be upgraded, given they are already at the same level as Japan's sovereign rating. In addition, upward pressure on Chiba Bank's BCA is unlikely, unless there is a material change in Japan's operating environment that is conducive to higher profitability and results in stronger capital generation.

The ratings could be downgraded in case of (1) a sustained decline in recurring profitability; (2) signs of asset quality deterioration; (3) a material decline in capital ratios due to increased risk-taking or shareholder returns; and (4) a downgrade of Japan's sovereign rating.

The Chugoku Bank, Limited

Moody's would consider upgrading Chugoku Bank's ratings if the bank increases its profitability on a sustained basis without significantly raising risk, despite the difficult operating environment; and if it continues to exhibit strong loan quality as its rapidly growing loans season.

The ratings could be downgraded if Chugoku Bank's (1) TCE ratio falls below 10%; (2) profitability weakens further because of rising credit costs or losses from its securities portfolio; (3) asset quality deteriorates, especially as its loans season; and (4) liquidity weakens because of increased reliance on market funds or investments in less liquid assets.

The Daishi Bank, Ltd.

Given the negative outlook on Daishi Bank's rating, its BCA and deposit rating are unlikely to be upgraded. However, the outlook could be changed to stable if macroeconomic conditions in Japan improve and the bank maintains sound credit metrics in line with its current rating and assessment.

The ratings could be downgraded if (1) the TCE ratio of its parent, Daishi Hokuetsu Financial Group, Inc., falls below 8%; (2) its operating conditions deteriorate materially; (3) its asset quality and profitability weaken materially; and (4) its liquidity weakens because of increased reliance on market funds or investments in less-liquid assets.

The Gunma Bank, Ltd.

Moody's would consider upgrading Gunma Bank's ratings if the bank increases its profitability on a sustained basis without significantly raising risks, amid the difficult operating environment.

The ratings could be downgraded if Gunma Bank's (1) TCE ratio falls below 9%; (2) profitability weakens further because of rising credit costs or losses from its securities portfolio; (3) asset quality deteriorates; and (4) liquidity weakens because of an increased reliance on market funds or investments in less-liquid assets.

The Hiroshima Bank, Ltd.

Upward rating pressure is unlikely, given the negative outlook and the fact that Hiroshima Bank's long-term rating incorporates a two-notch uplift from its BCA. The rating outlook could return to stable if the bank improves its capitalization or profitability without significantly raising risk and if it increases non-interest income amid the difficult operating environment, while maintaining its asset quality.

The ratings could be downgraded if Hiroshima Bank's (1) TCE ratio falls below 11%; (2) profitability weakens further; (3) asset quality deteriorates; and (4) liquidity weakens because of an increased reliance on market funds or investment in less-liquid assets.

The Hyakujushi Bank, Ltd.

Given the negative outlook on the bank's rating, its BCA and deposit rating are unlikely to be upgraded. However, the outlook could be changed to stable if macroeconomic conditions in Japan improve and the bank maintains sound credit metrics in line with its current rating and assessment.

The ratings could be downgraded if (1) operating conditions deteriorate materially; (2) asset quality and profitability weaken materially; (3) its TCE ratio falls below 7%; and (4) liquidity weakens because of increased reliance on market funds or investments in less liquid assets.

Japan Post Bank Co., Ltd.

Japan Post Bank's ratings are unlikely to be upgraded, given that they are already at the same level as Japan's sovereign rating. Upward pressure on Japan Post Bank's BCA could occur over time if the bank improves its profitability without significantly increasing its asset risk.

The ratings could be downgraded if (1) Japan's sovereign rating is downgraded; (2) the bank's risk appetite increases further as it seeks to offset the structural erosion of its profitability because of the negative interest rate policy; or (3) if there a reduction in the bank's importance as a universal service obligation provider for its parent holding company, Japan Post Holdings Co., Ltd. (JPH) and sister company, Japan Post Co., Ltd., or there is a weakening in its strong relationship with JPH.

Japan Trustee Services Bank, Ltd.

Japan Trustee Services Bank's long-term deposit ratings are at the same level as Japan's sovereign rating. Consequently, Moody's would only consider upgrading the bank's ratings if Japan's sovereign rating is upgraded.

The ratings could be downgraded in case of (1) a failure in its risk management, for example, increased operational risk; and/or (2) a change in its balance-sheet composition, which may include increased credit risk or illiquid assets.

The Joyo Bank, Ltd.

Moody's would consider upgrading Joyo Bank's ratings if the profitability of its parent, Mebuki Financial Group, Inc., improves on a sustained basis, without increasing risk significantly, amid the difficult operating environment.

The ratings could be downgraded if its (1) group TCE ratio falls below 8%; (2) group profitability weakens further because of rising credit costs or losses from its securities portfolio; (3) asset quality deteriorates; and (4) liquidity weakens because of increased reliance on market funds or investments in less liquid assets.

MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation

(Mitsubishi UFJ Financial Group, Inc.)

An upgrade of MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation is unlikely, given that their ratings are already at the same level as the Government of Japan's sovereign rating. Upward pressure on the two banks' BCAs is unlikely, unless there is a material change in Japan's operating environment that is conducive to higher profitability and results in stronger capital generation.

The ratings could be downgraded in case of (1) a continuous decline in recurring profitability; (2) signs of asset-quality deterioration; (3) acquisitions or expansions that materially increase Mitsubishi UFJ Financial Group, Inc.'s overall risk profile; and (4) a reduction in the government support assumptions incorporated into the senior unsecured and subordinated instruments if the Japanese government's support framework changes and moves toward supporting particular debt class(es) rather than the banking entity, which includes the bank holding company.

Mizuho Bank, Ltd. and Mizuho Trust & Banking Co., Ltd.

(Mizuho Financial Group, Inc.)

An upgrade of Mizuho Bank, Ltd. and Mizuho Trust & Banking Co., Ltd. is unlikely, given that their ratings are already at the same level as Japan's sovereign rating. In addition, upward pressure on the two banks' BCAs is unlikely, unless there is a material change in Japan's operating environment that is conducive to higher profitability and leads to stronger capital generation.

The ratings could be downgraded if (1) the banks' core profitability continues to decline; (2) Mizuho Financial Group, Inc. and the two banks undertake acquisitions or expansions that lead to a material deterioration in their overall risk profile relative to their capital base; (3) Japan's sovereign rating is downgraded; and (4) there is a reduction in Moody's assumption of government support incorporated into the senior unsecured and subordinated instruments, which could occur if the government's support framework changes and moves toward supporting particular debt class(es) rather than the banking entity, which includes the bank holding company.

Norinchukin Bank

An upgrade is unlikely because Norinchukin Bank's long-term deposits and senior debt are rated at the same level as Japan's sovereign rating.

The ratings could be downgraded in case of (1) a change in Norinchukin Bank's investment strategy that results in higher credit or market risk; (2) its TCE ratio remaining below 14% over an extended period; (3) its nominal leverage ratio falling below 5%; (4) a failure of the member cooperatives, resulting in depositor losses or the need for extraordinary financial assistance from Norinchukin Bank; and (5) signs of a fall in Norinchukin Bank's importance as the central institution for Japan's agricultural, forestry and fishery cooperatives.

Resona Bank, Limited and Saitama Resona Bank, Limited

Moody's would consider upgrading Resona Bank and Saitama Resona Bank's ratings if their parent holding company, Resona Holdings, Inc. (Resona Holdings), increases its group profitability on a sustained basis without significantly raising risk amid the challenging operating environment.

The ratings could be downgraded if (1) Resona Holdings' TCE ratio falls below 8%; (2) its profitability weaken further; (3) its asset quality deteriorates; and (4) its liquidity weakens, because of increased reliance on market funds or investments in less liquid assets.

The San-in Godo Bank, Ltd.

Given the negative outlook on San-in Godo Bank's ratings, its BCA and deposit ratings are unlikely to be upgraded. However, the outlook could be changed to stable if macroeconomic conditions in Japan improve and the bank maintains sound credit metrics in line with its current ratings and assessment.

The ratings could be downgraded if (1) operating conditions deteriorate significantly; (2) asset quality and profitability weaken significantly; (3) its TCE ratio falls below 11%; and (4) liquidity weakens, because of an increased reliance on market funds or investments in less liquid assets.

Shinhan Bank Japan

Moody's could upgrade Shinhan Bank Japan's rating if it receives a written guarantee of support from its parent, Shinhan Bank. Moody's could upgrade the bank's BCA if (1) the bank improves its profitability on a sustained basis without significantly increasing risk, despite the difficult operating environment; (2) it diversifies its loan portfolio, with a reduced reliance on real estate lending to both corporate and retail clients, while maintaining strong loan quality and capitalization at current levels; and (3) it strengthens its deposit base without offering interest rates that are materially higher than those offered by its competitors.

The ratings could be downgraded if Korea's sovereign rating is downgraded, or if there is a significant reduction in Shinhan Bank's ownership of Shinhan Bank Japan, thereby lowering the subsidiary's importance to Shinhan Bank. Factors that could result in a downgrade of the BCA include a deterioration in asset quality, especially as its newer loans start to season, or a failure to maintain its TCE ratio above 10%.

Shinkin Central Bank

Shinkin Central Bank's (SCB) A1 long-term deposit ratings are currently at the same rating level as Japan's sovereign rating. As such, an upgrade of the bank's ratings is unlikely, in the absence of upward pressure on the sovereign rating. In addition, upward pressure on SCB's BCA is unlikely unless there is a material change in Japan's operating environment that is conducive to higher profitability and results in stronger capital generation at both SCB and the member shinkin banks.

The ratings could be downgraded in case of (1) signs of higher risk tolerance in SCB's investment strategy; (2) a deterioration in SCB's total capital and/or total capital ratio; (3) the amount of SCB's capital assistance to member shinkin banks exceeding the self-determined limit of 15% of its total capital; (4) a diminishing in SCB's role as the central financial organization for Japan's a nationwide network of cooperative savings institutions called shinkin banks; or (5) a downgrade of Japan's sovereign rating.

Shinsei Bank, Limited

Moody's would consider upgrading Shinsei Bank's rating if the bank strengthens its deposit base, without offering materially higher interest rates than its competitors; and further develops long-term commercial loan relationships that also result in stable fee generation.

The ratings could be downgraded if (1) the bank undertakes expansions that materially increase its overall risk profile or hurt its asset quality, such that its problem loans/gross loans rises significantly; (2) there is an increase in its level of risk assets, such that its TCE ratio falls below 11%; and (3) it fails to maintain its deposit base without increasing interest rates.

The Shizuoka Bank, Ltd.

Shizuoka Bank's ratings are unlikely to be upgraded, given that they are already at the same level as Japan's sovereign rating. Moody's would consider upgrading Shizuoka Bank's BCA if it improves its profitability on a sustained basis without significantly increasing risk, despite the challenging operating environment.

The ratings could be downgraded if (1) the bank's TCE ratio falls below 13% because of a material increase in the bank's credit or market exposure; (2) its profitability further weakens because of rising credit costs or losses from its securities portfolio; (3) its asset quality deteriorates; (4) its liquidity weakens because of an increased reliance on market funds or investments in less liquid assets; or (5) Japan's sovereign rating is downgraded.

The Shoko Chukin Bank, Ltd.

An upgrade of Shoko Chukin Bank's ratings is unlikely because the bank's long-term deposits are rated at the same level as Japan's sovereign rating. In addition, an upgrade of the bank's BCA is unlikely, unless it successfully restructures and develops a sustainable business model for its medium-term plan, which spans from April 2018 until March 2022.

The ratings could be downgraded in case of (1) a reduction in the bank's policy importance and an increase in the likelihood of full privatization; (2) a downgrade of Japan's sovereign rating; (3) a further reduction in the government's ownership of the bank; or (4) a bottom-line loss resulting from a rise in credit expenses or funding costs.

Sumitomo Mitsui Banking Corporation

(Sumitomo Mitsui Financial Group, Inc.)

An upgrade of Sumitomo Mitsui Banking Corporation (SMBC) is unlikely, given that the rating is already at the same level as Japan's sovereign rating. In addition, upward pressure on SMBC's BCA is unlikely, unless there is a material change in Japan's operating environment that is conducive to higher profitability and results in stronger capital generation.

The ratings could be downgraded in case of (1) a continuous decline in core profitability; (2) acquisitions or expansions that materially increase Sumitomo Mitsui Financial Group Inc.'s overall risk profile; and (3) a reduction in the government support assumptions incorporated into the senior unsecured and subordinated instruments if the Japanese government's support framework changes and moves toward supporting particular debt class(es) rather than the banking entity, which includes the bank holding company.

Sumitomo Mitsui Trust Bank, Limited

An upgrade of Sumitomo Mitsui Trust Bank's ratings is unlikely, because the bank's A1 long-term deposit rating is at the same level as Japan's sovereign rating. In addition, upward pressure on the bank's BCA is unlikely, unless there is a material change in Japan's operating environment that is conducive to higher profitability and results in stronger capital generation.

The ratings could be downgraded in case of (1) a downgrade of Japan's sovereign rating; or (2) the TCE ratio of its parent, Sumitomo Mitsui Trust Holdings, Inc., remaining below 9% on a sustained basis.

Trust & Custody Services Bank, Ltd.

Trust & Custody Services Bank's long-term deposit ratings are at the same level as Japan's sovereign rating. Consequently, the bank's ratings are unlikely to be upgraded in the absence of upward pressure on the sovereign rating.

The ratings could be downgraded in case of (1) a failure in risk management, for example, increased operational risks; and/or (2) a change in the bank's balance-sheet composition, leading to increased credit risk or illiquid assets.

The principal methodology used in these ratings was Banks Methodology (Japanese) published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147869. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The 77 Bank, Ltd., headquartered in Sendai City, Miyagi Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY8.6 trillion.

The Bank of Fukuoka, Ltd., headquartered in Fukuoka City, Fukuoka Prefecture, is a regional bank in Japan and is a principal operating subsidiary of Fukuoka Financial Group, Inc. At the end of September 2019, the bank reported consolidated assets totaling JPY18.2 trillion.

The Bank of Yokohama, Ltd., headquartered in Yokohama City, Kanagawa Prefecture, is a regional bank in Japan and is a principal operating subsidiary of Concordia Financial Group, Ltd. At the end of September 2019, The Bank of Yokohama's reported consolidated assets totaling JPY16.5 trillion, while Concordia Financial Group reported consolidated assets totaling JPY18.5 trillion.

The Chiba Bank, Ltd., headquartered in Chiba City, Chiba Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY15.7 trillion.

The Chugoku Bank, Limited, headquartered in Okayama City, Okayama Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY8.6 trillion.

The Daishi Bank, Ltd., headquartered in Niigata City, Niigata Prefecture, is a regional bank in Japan and is a principal operating subsidiary of Daishi Hokuetsu Financial Group, Inc. At the end of September 2019, the bank reported consolidated assets totaling JPY6.0 trillion.

The Gunma Bank, Ltd., headquartered in Maebashi City, Gunma Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY8.4 trillion.

The Hiroshima Bank, Ltd., headquartered in Hiroshima City, Hiroshima Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY9.4 trillion.

The Hyakujushi Bank, Ltd., headquartered in Takamatsu City, Kagawa Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY5.0 trillion.

Japan Post Bank Co., Ltd., headquartered in Tokyo, is one of the largest Japanese banks. At the end of December 2019, the bank reported consolidated assets totaling JPY215.7 trillion.

Japan Trustee Services Bank, Ltd., headquartered in Tokyo, is one of three major custody banks in Japan, with total entrusted assets of JPY300.2 trillion at the end of September 2019.

The Joyo Bank, Ltd., headquartered in Mito City, Ibaraki Prefecture, is a regional bank in Japan and a principal operating subsidiary of Mebuki Financial Group, Inc. At the end of September 2019, the bank reported consolidated assets totaling JPY10.7 trillion.

MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation, headquartered in Tokyo, are principal operating subsidiaries of Mitsubishi UFJ Financial Group, Inc. which is the largest of the three megabanks in terms of total assets. At the end of September 2019, MUFG Bank, Ltd. and Mitsubishi UFJ Trust and Banking Corporation's consolidated assets were JPY252.3 trillion and JPY35.3 trillion, respectively, while Mitsubishi UFJ Financial Group, Inc. reported consolidated assets totaling JPY314.5 trillion.

Mizuho Bank, Ltd. and Mizuho Trust & Banking Co., Ltd., headquartered in Tokyo, are principal operating subsidiaries of Mizuho Financial Group, Inc., which is the smallest of the three megabanks in terms of total assets. At the end of September 2019, Mizuho Bank, Ltd. and Mizuho Trust & Banking Co., Ltd.'s consolidated assets were JPY181.7 trillion and JPY7.4 trillion, respectively, while Mizuho Financial Group, Inc. reported consolidated assets totaling JPY204.7 trillion.

Norinchukin Bank, headquartered in Tokyo, is a national-level cooperative financial institution. Its members comprise agriculture, forestry and fisheries-related organizations. The bank's consolidated assets totaled JPY108.4 trillion at the end of September 2019.

Resona Bank, Limited, headquartered in Osaka City, Osaka Prefecture, is a subsidiary of Resona Holdings, Inc. At the end of September 2019, the bank reported consolidated assets totaling JPY32.9 trillion.

Saitama Resona Bank, Limited, headquartered in Saitama City, Saitama Prefecture, is a subsidiary of Resona Holdings, Inc. At the end of September 2019, the bank reported unconsolidated assets totaling JPY14.7 trillion.

The San-in Godo Bank, Ltd., headquartered in Matsue City, Shimane Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY6.0 trillion.

Shinhan Bank Japan is the Japanese subsidiary of Korea-based Shinhan Bank. At the end of September 2019, the bank reported unconsolidated assets totaling JPY0.9 trillion.

Shinkin Central Bank is the central bank to Japan's 255 regional cooperative or "shinkin" banks. The bank's consolidated assets totaled JPY45.0 trillion at the end of December 2019.

Shinsei Bank, Limited, headquartered in Tokyo, is one of Japan's major banks. Its consolidated assets totaled JPY10.1 trillion at the end of December 2019.

The Shizuoka Bank, Ltd., headquartered in Shizuoka City, Shizuoka Prefecture, is a regional bank in Japan. At the end of December 2019, the bank reported consolidated assets totaling JPY12.8 trillion.

The Shoko Chukin Bank, Ltd., headquartered in Tokyo, is a joint-stock bank that operates in all Japanese prefectures. The bank's consolidated assets totaled JPY11.4 trillion at the end of September 2019.

Sumitomo Mitsui Banking Corporation, headquartered in Tokyo, is a principal operating subsidiary of Sumitomo Mitsui Financial Group, Inc. which is the second largest of the three megabanks in terms of total assets. At the end of September 2019, Sumitomo Mitsui Banking Corporation reported consolidated assets totaling JPY194.4 trillion while Sumitomo Mitsui Financial Group, Inc. reported consolidated assets totaling JPY209.4 trillion.

Sumitomo Mitsui Trust Bank, Limited, headquartered in Tokyo, is Japan's largest trust bank by assets. The bank's consolidated assets totaled JPY56.9 trillion at the end of September 2019.

Trust & Custody Services Bank, Ltd., headquartered in Tokyo, is one of three major custody banks in Japan, with total assets under custody and administration of JPY383 trillion at the end of September 2019.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL423269 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

• Lead Analyst

• Releasing Office

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Tomoya Suzuki
Asst Vice President - Analyst
Financial Institutions Group
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: 81 3 5408 4110
Client Service: 81 3 5408 4100

Graeme Knowd
MD - Banking
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: 81 3 5408 4110
Client Service: 81 3 5408 4100

No Related Data.
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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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