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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (12213)	5/27/1998 2:11:00 AM
From: Peter Neidhardt	Respond to of 116836

An interesting site (very bullish naturally!) usagold.com

To: Stephen O who wrote (12213)	5/27/1998 6:02:00 AM
From: Alex	Read Replies (1) \| Respond to of 116836

Stephen - no GST on maple leafs.................... Moody's cuts ratings of five major Japanese banks TOKYO, May 27 (Reuters) - Moody's Investors Service said on Wednesday it had cut its ratings of five major Japanese banks and put ratings of four others under review for possible downgrade. ''The downgrades reflect the concern that Japanese banks are facing a third wave of asset quality problems because of the weakening domestic economy, on top of existing problems resulting from the East Asian crisis and the collapse of the bubble economy,'' Moody's said in a statement. Moody's said it had cut Bank of Tokyo-Mitsubishi Ltd's (8315.T) (BTM) long-term deposit and senior debt ratings to A1 from Aa2 and its bank financial strength rating to C from B. It maintained its Prime-1 short-term obligations rating for the bank. The agency cut its deposit rating of BTM subsidiary Nippon Trust Bank Ltd to A2 from Aa3, the statement said. It said the outlook for its ratings of Nippon Trust and BTM was stable. ''Although the bank (BTM) has moved more aggressively than other city banks to increase its loan loss reserves, the scope of the bad loan problem remains very large,'' Moody's said. Other top Japanese banks which had their credit ratings downgraded were Dai-Ichi Kangyo Bank Ltd (DKB) , Sakura Bank , Industrial Bank of Japan Ltd and Sumitomo Bank Ltd . Moody's also placed the credit ratings of the Long-Term Credit Bank of Japan , Asahi Bank Ltd , Fuji Bank Ltd and Tokai Bank Ltd under review for possible downgrade. It cutDKB's long-term deposit and senior debt ratings to A3 from A1 and its bank financial rating to D from C. The bank's Prime-1 short-term obligations rating was also lowered to Prime-2. ''In Moody's view, DKB's reserve coverage may prove insufficient, considering the bank's significant exposure to certain problematic borrowers for which DKB has acted as their main bank,'' the statement said. The rating outlook for the new ratings for DKB is stable, the agency said. Moody's downgraded Industrial Bank of Japan's (IBJ) long-term deposit and senior debt ratings to A3 from A2, its short-term rating to Prime-2 from Prime-1 and its bank financial strength rating to D from C. The rating for the bank's non-cumulative preferred stock was also lowered to baa2 from a3. ''Although IBJ is building up its investment banking and asset management businesses, in Moody's opinion they are not likely to offset fully the decline in core profits from lending operations,'' the statement said. The rating outlook for the new ratings for IBJ is stable, it said. Moody's cut Sakura Bank's long-term deposit rating to Baa1 from A3, the long-term debt rating to Baa2 from A3 and the financial strength rating to E+ from D+. The bank's non-cumulative preferred stock rating was also lowered to ba1 from baa2. The rating agency meanwhile maintained its Prime-2 rating for the bank's short-term obligations. The outlook for the bank's ratings is now stable, it said. ''Moody's is concerned that the bank's relatively high exposure to problematic real estate and construction sectors will likely result in susbstantial additional credit costs,'' it said. It also pointed to concern about risks in Sakura's Asian loan portfolio. Moody's cut Sumitomo Bank's long-term deposit rating and senior debt ratings to A2 from A1, and its financial strength rating to D+ from C. The bank's Prime-1 short-term rating was maintained. The rating for the bank's non-cumulative preferred stock was lowered to baa1 from a2 in conjunction with the downgrading of its financial strength rating, the agency said. ''Moody's is concerned by Sumitomo's above-average exposure to the domestic construction industry and large concentrations within that portfolio,'' the statement said. The rating look is now stable, it said. Moody's placed its long-term and short-term credit ratings and Ba1 subordinated debt ratings of the Long-Term Credit Bank of Japan under review for possible downgrade. ''This action reflects the heightened pressure on the bank's weak financial condition related to the deteriorating operating environment in Japan and East Asia,'' Moody's said in the statement. It put Asahi Bank's A2 long-term debt and deposit ratings, its D+ bank financial strength rating and preferred stock rating under review for possible downgrade. Moody's also placed Fuji Bank's A3 long-term deposit and senior debt ratings, its D+ BFSR, and its ''baa2'' rating for non-cumulative preferred stock under review for possible downgrade. ''The review will consider the possible impact of the deteriorating Japanese economy and the bank's East Asian exposures on Fuji's asset quality and profitability,'' it said. The review will also examine management's plans for improving Fuji's capital position, Moody's said. Moody's placed Tokai Bank's A2 long-term deposit and senior debt ratings, its D+ bank financial strength rating and its preferred stock ratings under review for possible downgrade.