Fitch affirms Resona Bank

Fitch Ratings said it affirmed Resona Bank's individual rating at D and support rating at 2.

The affirmations follow Resona Holdings' announcement yesterday that it will repay government-owned preferred stock through a repurchase and cancellation.

At the end of September, Resona's consolidated total capital ratio stood at 12.5%, Fitch said. While the repayment will constrain Resona Holdings' capital ratios, it will improve its capital quality, although its capital structure still relies heavily on public funds, the agency said. Fitch said it will continue to monitor Resona Holdings' ability to further retain earnings and reduce public funds to improve its capital levels and capital quality.

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