S&P Affirms Bank of Kyoto at A- on Government Support, Economic Importance
S&P Global Ratings has maintained Bank of Kyoto's A- long-term issuer credit rating and A-2 short-term issuer credit rating, with the outlook kept at stable, according to a recent release.The affirmation reflects the likelihood of obtaining extraordinary government support, given Kyoto Financial Group's (TYO:5844) importance to the regional economy, S&P said.However, the rating agency revised the group's standalone credit profile down to "bbb+" from "a-" due to a further potential drop in the capital buffer amid growth in risk assets.The outlook stems from the group's healthy business and steady deposit bases as well as the likelihood of state support in the next one to two years, the rating agency said.S&P expects the group to continue to post improved profitability, with solid earnings mainly from its home market of Kyoto Prefecture.Changes in Kyoto Financial Group's standalone credit profile or Japan's sovereign credit rating could prompt rating actions for the bank.
