(The following was released by the rating agency)
TOKYO (Standard & Poor‘s) March 14, 2012--Standard & Poor’s Ratings Services today assigned its ‘A+’ debt rating to the U.S. dollar-denominated senior notes issued by Mizuho Corporate Bank Ltd. (A+/Negative/A-1). The US$1.5 billion senior notes, due on March 17, 2017, carry a coupon rate of 2.55%.
The ratings on Mizuho Corporate Bank reflect its financial profile on a consolidated basis, in addition to the consolidated financial profile and market position of its parent, Mizuho Financial Group Inc. (Mizuho FG; A/Negative/--). The ratings also acknowledge Mizuho Corporate Bank’s close business links with affiliated group companies and Mizuho FG’s control of the group’s organizational structure and capital allocation.
As the second-largest bank in Japan, Mizuho FG has maintained a solid domestic franchise, which leads us to our “strong” assessment of its business position. The group’s strength lies in its intensive network in metropolitan areas as well as a broad range of services including investment banking, international operations, and asset management.
We view Mizuho FG’s capital and earnings as “moderate” compared to its peers, based on our expectations that the risk-adjusted capital (RAC) ratio will improve but remain around 6.0%-7.0% over the next two years. Our risk position assessment for Mizuho FG is “adequate.” We expect the volume and performance of Mizuho FG’s loan portfolio to remain stable. Mizuho FG’s funding, which mainly comes from deposits, is stable and its reliance on wholesale funding is low. Its liquidity position is “strong,” in our opinion, given its sizable amount of highly liquid assets, such as cash and government bonds.
Banks: Rating Methodology And Assumptions, Nov. 9, 2011 Group Rating Methodology And Assumptions, Nov. 9, 2011 Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011 BICRA On Japan Maintained At Group ‘2’, Nov. 9, 2011 Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011