Fitch Ratings has downgraded its ratings on the major Japanese banking groups to ‘A-‘ from ‘A’,, reflecting a reduction in the Japanese government’s ability to support the banks, if necessary.
The rating agency said Friday that it has cut its ratings for Mitsubishi UFJ Financial Group, Inc., Mizuho Financial Group, Inc., Sumitomo Mitsui Financial Group, Inc. and their subsidiaries. The downgrades are due to the government’s weakened financial ability to support the banking system, Fitch says.
In cutting the ratings, they have have now been removed from rating watch negative. And the rating outlooks on the banks are stable, as Fitch notes that even if the sovereign’s ratings were downgraded by a further notch, it does not expect the banks to be downgraded further.