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Affirmed A-/Negative and BBB+ on Higashi-Nippon Bank | Dec 17, 2009 |
Issuer: Higashi-Nippon Bank, Limited, The (8536)
JCR has affirmed the A- and the BBB+ rating on senior debts and subordinated bonds of the issuer, respectively. The rating outlook is Negative.
Senior debts: A-/Negative
Issue Amount(bn) Issue Date Due Date Coupon Rating
subordinated callable
bonds no.1 Y10 Dec. 18, 2006 Dec. 16, 2016 * BBB+
*2.62% per annum till Dec. 18, 2011. It will switch to 6M Euroyen LIBOR +
2.70% after that date.
<Rationale>
The Higashi-Nippon BankĄ¤Limited is a second regional bank and is headquartered in Chuo-ku, Tokyo. Its funds total approximately 1.6 trillion yen. The Bank posted a net loss in FY 2008 ended March 31, 2009 and its equity capital was impaired, mainly because of a large amount of credit losses as a result of deteriorating financial performance of emerging real estate companies to which the Bank made loans. However the Bank's Tier 1 capital ratio has been approximately in line with our "A-" range. Our affirmation of the "A-" rating reflects that the Bank has maintained a certain level of earning power because of various factors including its higher loan-deposit ratio, despite a recent decline in the ratio. However our affirmation of the "Negative" outlook reflects our view on its continuing tough business environment surrounding real estate companies and the quality of loan assets at the moment.
JCR has affirmed the A- and the BBB+ rating on senior debts and subordinated bonds of the issuer, respectively. The rating outlook is Negative.
Senior debts: A-/Negative
Issue Amount(bn) Issue Date Due Date Coupon Rating
subordinated callable
bonds no.1 Y10 Dec. 18, 2006 Dec. 16, 2016 * BBB+
*2.62% per annum till Dec. 18, 2011. It will switch to 6M Euroyen LIBOR +
2.70% after that date.
<Rationale>
The Higashi-Nippon BankĄ¤Limited is a second regional bank and is headquartered in Chuo-ku, Tokyo. Its funds total approximately 1.6 trillion yen. The Bank posted a net loss in FY 2008 ended March 31, 2009 and its equity capital was impaired, mainly because of a large amount of credit losses as a result of deteriorating financial performance of emerging real estate companies to which the Bank made loans. However the Bank's Tier 1 capital ratio has been approximately in line with our "A-" range. Our affirmation of the "A-" rating reflects that the Bank has maintained a certain level of earning power because of various factors including its higher loan-deposit ratio, despite a recent decline in the ratio. However our affirmation of the "Negative" outlook reflects our view on its continuing tough business environment surrounding real estate companies and the quality of loan assets at the moment.
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