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S&P affirms Japan-based BOT Lease, removes from CreditWatch negative

S&P Global Ratings removed the ratings of Japan-based BOT Lease Co. Ltd. from CreditWatch negative and affirmed its long- and short-term ratings at BBB and A-2, respectively. The outlook on the long-term rating is negative.

The rating agency in October 2017 had placed the long- and short-term ratings of BOT Lease on CreditWatch with negative implications in view of its assessment that the company's credit and impairment losses related to large-lot obligors could increase.

S&P said Feb. 28 that it removed the company's ratings from CreditWatch negative as it expects potential losses from large-lot obligors to be one-off events and remain within the range of its current combined assessments for the company's capitalization and risk position. Further, the rating affirmation reflects S&P's view that any impact of potentially large losses would be within the range of current combined assessments for its capitalization and risk position.

S&P expects the risk-adjusted capital ratio of BOT Lease to be between 5.0% and 6.0% over the next two years, while the company's risk assets are expected to grow due to its expansion in overseas business, mainly in Asian markets.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.