BTM REMAINS HIGHEST IN RATINGS AMONG JAPANESE BANKS
January 15, 1998
BTM continues to maintain its strong ratings position among major Japanese banks.
On October 30, S&P downgraded BTM's long- and short-term senior debt ratings. S&P cited pressure on BTM's asset quality as a result of the recession in Japan, risks in the Bank's emerging markets portfolio, and an increasingly competitive environment.
On October 23, Moody's placed BTM's short-term, long-term and BFSR ratings on review for possible downgrade. Moody's review will focus on BTM's core profitability, asset quality, and exposures to affiliated companies. At the time of their most recent ratings action, Moody's had acknowledged that "BTM has a strong domestic franchise, with a large network and a favorable reputation among consumers. BTM also has a strong base of corporate clients and large foreign exchange and clearing businesses."
On July 29, Thomson BankWatch downgraded BTM's Senior Debt rating from AA to AA-. TBW states that this downgrade was required in view of Japan's economic problems coupled with erosion in other Asian markets. However, TBW also states that “Among Japan's major banks, Bank of Tokyo-Mitsubishi is considered to have the most favorable prospects over time in Japan's deregulated environment, given its strong domestic and international franchise, and its comparatively conservative management approach.”
Moody's S&P BankWatch
Short Long BFSRs Short Long Long Issuer
Bank of Tokyo-Mitsubishi P-1 DOWN A1 DOWN C DOWN A-2 A- AA- B/C
Union Bank of California, N.A. P-1 A1 C+ A-2 A- (B/C)
BTM Trust Company P-1 A3
Sanwa P-1 A1 DOWN C DOWN A-2 BBB+ C
Sumitomo P-1 DOWN A2 DOWN D+ DOWN A-2 BBB+ C
Dai-ichi Kangyo P-2DOWN A3DOWN DDOWN A-3 BBB C
Industrial Bank of Japan P-2 A3 DOWN D DOWN A-2 BBB+ A C
Asahi P-2 Baa1 D A-2 BBB+ C
Tokai P-2 Baa1 D A-3 BBB- C/D
Fuji (a) P-2 Baa1 E+ A-2 BBB+ C/D
Sakura (a) P-2 Baa1 E+ A-3 BBB C/D
Mitsubishi Trust P-2 DOWN Baa1 DOWN D DOWN A-3 BBB C DOWN
Sumitomo Trust P-2 Baa2 D A-3 BBB D
Mitsui Trust (b) P-3 Baa2 E A-3 BBB- D
Long-Term Credit (c) P-2 Baa2 E B BB+
Norinchukin P-1 A1 D+ A-1 A+
Morgan Guaranty Trust P-1 Aa2DOWN B+DOWN A-1+ AA+ (AA+) (A/B)
Chase Manhattan Bank P-1 Aa2 B+ A-1+ AA- AA (B)
Citibank, N.A. P-1 Aa2 B+ A-1+ AA- AA+ (A/B)
First National Bank of Chicago P-1 Aa2 B A-1+ AA- AA- (B)
Bankers Trust Co. P-1DOWN A1DOWN C+DOWN A-1 A A+ (B/C)
(Ordering by long-term ratings by Moody's, S&P then BankWatch)
Note 1: UP: Possible Upgrade; DOWN: Possible Downgrade
Note 2: Bracketed ratings are of its parent Bank Holding Company.
(a) Moody's Baa1 rating is for long-term deposits. Senior debt rating is Baa2.
(b) Moody's Baa2 rating is for long-term deposits. Senior debt rating is Baa3.
(c) Moody's Baa2 rating is for long-term deposits. Senior debt rating is Baa3. |
