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Affirmed A+/Stable rating on sr.debts of Daishi Bank | May 20, 2010 |
JCR has affirmed the A+/Stable rating on senior debts of the issuer.
Issuer: The Daishi Bank, Ltd. (8324)
Senior debts: A+/Stable
<Rationale>
The Daishi Bank, Ltd. is the leading bank in Niigata Prefecture and has a strong business base there. The Bank has a sufficient risk buffer, including its 13.55 percent of capital adequacy ratio and 11.60 percent of Tier 1 capital ratio (at the end of March 2010 and on a consolidated basis). The Bank has been successful in controlling its credit costs. In our view, it is unlikely that the Bank will post a large amount of credit costs for several consecutive fiscal years, given its relatively strict asset assessment, classification of large borrowers and collateral and loan loss provision coverage ratio with respect to such borrowers. However JCR considers it necessary for the Bank to improve its profitability, as its net operating profit on core banking operations for FY 2009 ended March 31, 2010 decreased by 2.5 billion yen compared with a year earlier and the Bank has to incur joint development costs for systems in and after FY 2010 ended March 31, 2011.
Issuer: The Daishi Bank, Ltd. (8324)
Senior debts: A+/Stable
<Rationale>
The Daishi Bank, Ltd. is the leading bank in Niigata Prefecture and has a strong business base there. The Bank has a sufficient risk buffer, including its 13.55 percent of capital adequacy ratio and 11.60 percent of Tier 1 capital ratio (at the end of March 2010 and on a consolidated basis). The Bank has been successful in controlling its credit costs. In our view, it is unlikely that the Bank will post a large amount of credit costs for several consecutive fiscal years, given its relatively strict asset assessment, classification of large borrowers and collateral and loan loss provision coverage ratio with respect to such borrowers. However JCR considers it necessary for the Bank to improve its profitability, as its net operating profit on core banking operations for FY 2009 ended March 31, 2010 decreased by 2.5 billion yen compared with a year earlier and the Bank has to incur joint development costs for systems in and after FY 2010 ended March 31, 2011.
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