S&P ups ORIX to stable

Standard & Poor's said it revised to stable from negative the outlooks on the long-term counterparty credit ratings on ORIX Corp. and its subsidiaries ORIX Trust and Banking Corp. and ORIX Life Insurance Corp.

S&P revised to stable from negative the outlook on the insurer financial strength rating on ORIX Life and affirmed the A- long-term counterparty credit ratings on ORIX, ORIX Trust and ORIX Life; the A- insurer financial strength rating on ORIX Life; and the B bank fundamental strength rating on ORIX Trust.

The ratings actions consider a lower likelihood than before of ORIX's asset quality deteriorating substantially beyond initial assumptions, the agency said. ORIX has been restructuring its portfolios to tighten risk control and reinforce stability in its revenue sources.

S&P said it expects earnings to remain below the prefinancial crisis level because capital gains on sales of real estate and investment assets have been falling substantially, credit costs are likely to remain relatively high in the medium term and margins could decline on improved asset quality, the agency added.

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