Moody's affirms Resona Bank

Moody's Investors Service said it affirmed the D- bank financial strength rating and A3/prime-2 credit ratings of Resona Bank Ltd. All the ratings for other subsidiary banks under Resona Holdings, Inc., including Saitama Resona Bank Ltd. (A3/prime-2/D-) and The Kinki Osaka Bank, Ltd. (A3/prime-2/D-) also are affirmed. The affirmation follows the bank's announcement of its repurchase of its government-owned preferred stocks.

The outlook is stable.

The affirmation is based upon Moody's assessment that, although there will be a negative impact on the bank's consolidated Tier I capital base, this repurchase is in line with the holding company's strategy to accelerate downsizing government-injected capital.

The ratings already incorporate their group's capital structure with sizable government-owned preferred capital and ongoing constraints on its capital base from the future repurchase of those preferred stocks, the agency said.

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