Moody's Downgrades 5 Japanese Banks

By Fowler, Brian | American Banker, May 28, 1998 | Go to article overview

Moody's Downgrades 5 Japanese Banks


Fowler, Brian, American Banker


In the latest sign of sagging confidence in Japan's financial system, Moody's Investors Service said Wednesday that it has downgraded credit and financial-strength ratings for five major Japanese banks and put another four on review for possible downgradings.

The news, coming days after Japanese banks announced huge bad-debt writeoffs for the fiscal year ended March 31, underscored the industry's vulnerability to further declines in domestic asset prices and to losses on loans extended to companies in Southeast Asia.

The action was a vote of no confidence in Japanese financiers' efforts to restructure in the face of growing competition resulting from deregulation.

"Officials have made statements recently concerning new measures to resolve the bad-loan problem and to restructure and consolidate the industry," said Moody's.

"However, the rating agency does not expect that the authorities will be able to make material progress in this regard over the medium term because of powerful inertial forces that have so far successfully prevented major action to resolve insolvent banks decisively and to reduce the industry's capacity."

Moody's downgraded Bank of Tokyo-Mitsubishi Ltd., Industrial Bank of Japan Ltd., Dai-Ichi Kangyo Bank Ltd., Sakura Bank Ltd., and Sumitomo Bank Ltd.

At the same time, it put under review for possible downgrading Asahi Bank Ltd., Long-Term Credit Bank of Japan Ltd., Fuji Bank Ltd., and Tokai Bank Ltd.

Nippon Trust and Bank Ltd., a Tokyo-Mitsubishi subsidiary, also saw its long-term rating downgraded, Moody's said.

Tokyo financial markets swooned at the news; the yen and Japanese stocks and bonds all weakened.

"The downgrades added another factor for selling yen for the dollar in the mid- to long-term," said Takayuki Togawa, manager of foreign exchange at Tokai Bank.

The dollar edged up to an intraday high of 137.98 yen - just shy of its 81-month high of 138. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Moody's Downgrades 5 Japanese Banks
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.