Ratings of Japan's banks downgraded
Tuesday 22 August 1995
The Japanese authorities' efforts to stem the erosion of confidence in the domestic finan- cial markets were dealt a severe blow yesterday by poor credit ratings for the banking industry from Moody's and Standard & Poor's.
The long-awaited financial strengths ratings from Moody's Investors Service, the rating agency, amounted to a harsh assessment, according the large banks a below-par C rating, and the trust banks and regional banks low D and E ratings.
This is the first time that Moody's has rated Japan's 50 leading banks, ravaged by bad loans following the bursting of the land and asset price bubbles of the early Nineties.
The C rating for the leading financial institutions is lower than ratings Moody's would normally have given big commercial banks in other industrial countries.
Stephen Lewis, of London Bond Briefing said: "The Moody's rating decision will tend to undo whatever good the Ministry of Finance and the Bank of Japan have achieved in allaying market concerns over Japanese bank stability. It is a reminder that bad and doubtful loans on the banks' books are still rising."
Standard & Poor's yesterday placed the debt ratings of five Japanese banks on credit watch with negative implications, citing the "length and severity of the problems facing the Japanese banking sector that have heightened the industry's overall risk profile". Mitsubishi Bank and Sanwa Bank short- and long-term debt ratings were placed on credit watch negative along with the long-term ratings of Dai-ichi Kangyo Bank, Fuji Bank and Sumitomo Bank.
Japanese analysts estimate that bad loans in the financial system total some 40,000bn (pounds 275bn), while private analysts believe the real figure could be much higher. In particular, there are fears that the true extent of the housing loan crisis has still to be revealed.
elephant appealPrince William signs up for our charity appeal
elephant appealSo says man jailed for cutting off dead elephant's tusks
booksWe examine the best titles for teens
scienceResearchers teach border collie to understand sentences using more than 1,000 words
booksA Christmas story in six parts
travelWill high-value tourism help the workshops of this Renaissance city?
Geoffrey Macnab does not like the comedian's big screen debut
Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
'Untrue statements' anger over work to make H5N1 bird-flu virus MORE dangerous to humans
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 The publisher who played with fire: the battle for control of Larsson's £30m legacy
- 5 Police seize possessions of rough sleepers in crackdown on homelessness
- < Previous
- Next >
iJobs Money & Business
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...