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
