S&P: No changes for Resona Bank

Standard & Poor's said its counterparty credit ratings on Resona Bank Ltd. (A-/stable/A-2) would not be affected by plans by Resona Holdings Inc. to repay public funds.

Resona Holdings has aimed to repay public funds early in line with the Early Financial Correction Law, the agency said and it has steadily accumulated retained earnings from which public funds are repaid. As such, the holding company's plan to buy back preferred stock and retire the shares is within S&P's expectations.

S&P said it believes the plan will not affect the ratings on Resona Bank as it assesses preferred stock as low-quality capital. Furthermore, the holding company's capital quality is expected to improve, the agency said and Resona Holdings is expected to maintain its capital adequacy ratio at a specified level.

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