Fitch downgrades Aiful

Fitch Ratings said it downgraded Aiful Corp.'s long-term foreign- and local-currency issuer default ratings to BBB- from BBB, short-term foreign- and local-currency issuer default ratings to F3 from F2 and its senior unsecured notes to BBB- from BBB.

The outlook is negative.

The downgrades reflect an assessment of the direct and indirect impact of recessionary economic conditions, Fitch said, and the effects of the capital market dislocation on Aiful's business prospects, which have been constrained by falling funding.

The financial institutions from which Aiful borrows have become increasingly risk averse on account of their own volatile capitalization, Fitch said. So securing stable long-term funding for Aiful is constrained, the agency said.

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