Printer Friendly

-Moody's assigns A1 rating to Norinchukin Bank.

BANKING AND CREDIT NEWS-September 16, 2011--Moody's assigns A1 rating to Norinchukin Bank(C)2011 M2 COMMUNICATIONS http://www.m2.com

16 September 2011 -- Moody's has set an A1 rating, with a "stable" outlook, to the JPY69bn (USD899.3m/EUR652.3m) series 736 senior unsecured debenture of Japan's Norinchukin Bank.

The instrument matures in 2016.

"Moody's A1 ratings on Norinchukin are based on a Baseline Credit Assessment (BCA) of Baa1, the systemic support input for Japan bank ratings of Aa2, and Moody's assessment (based on the bank's importance as the primary banking institution for Japan's agricultural, forestry, and fishery cooperatives) that the likelihood of systemic support for Norinchukin is very high," the agency said.

Norinchukin bears a bank financial strength rating (BFSR) of C-, which takes into account its sound franchise as the central financial organisation for the country's agricultural, forestry and fishery co-operatives, its high risk positioning owing to large foreign securities investments and the complexity of its market investment portfolio as well as the volatility in financial fundamentals, although this is moderated by sound liquidity derived from the savings of the agricultural cooperatives (JAs) and the prefectural banking federations of the agricultural cooperatives (the shinnoren), Moody's added.

The agency also underscored the bank's stand-alone boosted capital, which is unique to its position as an international investment institution, and the difficulties it faces in relation to its business model. These factors are also incorporated in the BFSR, Moody's concluded.

((Comments on this story may be sent to info@m2.com)).END.PUB430>PDSeptember 16, 2011>JNBANKING AND CREDIT NEWS.PRICEDATENOT APPLICABLE.DAY

COPYRIGHT 2011 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M2 Banking & Credit News (BCN)
Geographic Code:9JAPA
Date:Sep 16, 2011
Words:262
Previous Article:-CRISIL rates Anil Steels at B+/"stable"/A4.
Next Article:-State Street declares USD0.18 p/s quarterly dividend.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters