According to news circulating, five major banks decreased ratings last week, according to Bloomberg's ranking on the pricing of derivatives from the data provider CMA. Five-year contract includes subordinated bonds of Sumitomo Mitsui Financial Group Inc. The main banking unit fell 48 basis points in five days that ended on September 2 to 277.5 basis points. By comparison, subordination of debt swap for JPMorgan Chase & Co. rose to 125 points from 118.5 last week.
Debt rating to Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui and Mizuho Corporate Bank Ltd. dropped a single note by Moody's on August 24 following the downgrade to Aa3 from Aa2 Japan, reflecting the reduction in government support in a crisis scenario.
The risk of bank debt fell last week on optimism 20 months down the loan request in the fiscal year ending March, analysts said. "Traders and investors seem to have ignored the Moody's downgrade on large banks because the action was largely in line with lowered Japan's credit debt," said Katsuhito Sasajima, an analyst with Chase PMorgan Tokyo.
No comments:
Post a Comment