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Non-Tech : MBK---------Bank of Tokyo Mitsubishi Ltd -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (132)	1/27/1999 9:21:00 AM
From: BAXTERBOO	Respond to of 170

Not good.....but not bad either....... 1. On January 25, Moody's downgraded the raings of BTM, Sanwa, and Sumitomo. "The downgrades reflect the deterioration in the banks' asset quality and erosion of their economic capital, as well as Moody's assessment that the banks are unlikely to raise their profitability to satisfactory levels in the medium-term. Although the banks have increased their loan loss reserves substantially, Moody's said, these provisions primarily address bad debts from the bubble era, rather than new problem loans arising from the sharp recession in Japan. In Moody's opinion, the difficult economic environment in Japan is likely to impair the creditworthiness of borrowers, particularly medium-size and small companies, that have been able to service their bank debt until the present. Moody's added that banks have established significant reserves against their exposures to Indonesian borrowers but their reserves regarding other Asian borrowers are modest. Consequently, Moody's expects that the banks' results will be constrained by the need for substantial credit expenses in the medium-term." a) Moody's downgraded the ratings of Bank of Tokyo-Mitsubishi as follows: Long-term Deposit / Senior / Issuer Rating From A1 to A2 Bank Financial Strength Rating From C to D+ The rating outlook is stable. "BTM remains one of the strongest city banks, and the bank has benefited from a large influx of low-cost deposits, according to Moody's, which has enhanced its liquidity and helped to stabilize its pre-provision income. Nonetheless, the rating agency added, BTM's profitability is low, with little prospect of substantial improvement." "BTM's asset quality is marginally better than other major banks', according to Moody's. However, the bank has exposures to certain problematic borrowers as well as other members of the Mitsubishi group that are in weak condition, which could aggravate asset quality issues over time. BTM's economic capital base is also stronger than other large banks, partly because the bank still has gains on its equity holdings." b) Moody's downgraded Sanwa Bank's ratings as follows: Long-term Deposit / Senior / Issuer Rating From A1 to A2 Subordinated Debt From A2 to A3 Bank Financial Strength Rating From C to D+ The rating outlook is negative. c) Moody's downgraded Sumitomo Bank's ratings as follows: Long-term Deposit / Senior / Issuer Rating From A2 to A3 Subordinated Debt From A3 to Baa1 Bank Financial Strength Rating From D+ to D Short-term Rating From P1 to P2 The rating outlook is stable. 2. On January 20, Moody's downgraded Mitsubishi Trust and Banking's ratings as follows Senior debt Rating From Baa1 to Baa2 Bank Financial Strength Rating From D to E+ Moody's confirmed the long-term and short-term deposit ratings of Mitsubishi Trust. The rating actions reflect Moody's opinion that the Bank's financial fundamentals have deteriorated to a level that requires external support. MTB's asset quality is weak and prospective credit costs may continue to pressure the Bank's economic base. The Moody's press release referred to above can be accessed at: moodys.com