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News > Companies
Moody's reviews Japan banks
September 16, 1998: 8:14 a.m. ET

Ratings may be cut as weak financial environment hits banks' fundamentals
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NEW YORK (CNNfn) - In another blow to Japan's already battered financial sector, Moody's Investor Service said Wednesday it is considering a downgrade in the credit ratings of three of the country's biggest banks.
     The U.S. credit rating agency is reviewing the ratings of Dai-Ichi Kangyo Bank Ltd., Mitsubishi Trust & Banking and Toyo Trust Banking.
     Moody's said the government's failure to restore market confidence and the instability of the global economy prompted the agency to review the financial fundamentals of Mitsubishi and Toyo.
     The agency will reevaluate the trusts' long-term debt and deposit ratings, the Prime-2 short-term rating and the D bank financial strength rating.
     Moody's will assess the exposure each institution has to financially troubled sectors, as well as current management strategies.
     The review of DKB was brought on by Moody's growing concern that "the continuously deteriorating operating environment may further affect DKB's asset quality and profit generating power."
     Moody's plans to reassess ratings on the bank's long-term debt and deposits.
     The agency will evaluate the level of risk DKB faces from problematic borrowers and their impact on DKB's financial fundamentals.
     DKB, one of the world's largest banks, currently has a midrange rating of A3. Mitsubishi and Toyo are rated Baa1, near the bottom of the category.
     A lower rating indicates higher risk for investors and depositors and could increase the banks' cost of raising funds. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.