JCR has placed the ratings on the issuer under Credit Monitor with Positive direction (#BBB-/Positive and #BB+/Positive).

Issuer: The Gifu Bank, Ltd. (8528)

Senior debts: #BBB-/Positive
Issues Amount(bn) Issue Date Due Date Coupon Rating
subordinated callable bonds no.1
(private placement) Y1.5 Mar. 16, 2006 Mar. 16, 2016 * #BB+/Positive
subordinated floating rate callable bonds no.2
(private placement) Y1.5 Mar. 16, 2006 Mar. 16, 2016 ** #BB+/Positive
*3.82% per annum till Mar. 16, 2011. It will switch to 6M Euroyen LIBOR
+ 4.00% after that date.
**6M Euroyen LIBOR + 2.50% till Mar. 16, 2011. 6M Euroyen LIBOR + 4.00% after
that date.

<Rationale>
The Gifu Bank, Ltd. (the "Bank") resolved today that it would make a request for management integration and a request for capital injection to The Juroku Bank, Ltd. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., respectively, and would start discussing and talks on such issues. The Bank will become a subsidiary of Juroku Bank in FY 2010 and will merge with Juroku Bank in FY 2012. It will then issue preferred shares to the Bank of Tokyo-Mitsubishi UFJ, Ltd., which is the largest shareholder of it, after share exchange with Juroku Bank.

The Bank and Juroku Bank (the "two banks") have been jointly developing products and services since they entered into a capital and business tie-up in January 2009. The resolutions above are considered taking a step towards a further strengthening of their relations. There is much room for improvement in the quality of the Bank's capital. Its maintenance of fundamental earnings power and control over the credit costs are issues for it to be addressed. JCR considers that the management integration and the capital assistance will have good impact on creditworthiness of the Bank. JCR will watch carefully progress in the discussions and effects of their outcomes on the financial structure of the two banks.