trending Market Intelligence /marketintelligence/en/news-insights/trending/gNyA_McQojj6AHyiJrv6EQ2 content esgSubNav
In This List

S&P upgrades outlook on Hokkoku Bank to stable

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion

Podcast

Street Talk | Episode 97: Recessionary fears still keeping bank investors on the sidelines

Blog

Making sanctions effective: Key themes for banks


S&P upgrades outlook on Hokkoku Bank to stable

S&P Global Ratings upgraded its outlook on Hokkoku Bank Ltd. to stable from negative following improvements on the bank's asset quality.

The rating agency also affirmed the bank's long-term and short-term counterparty credit ratings at A- and A-2, respectively, and revised the lender's standalone credit profile to "a-" from "bbb+."

S&P said the change in outlook reflects a steady improvement in the bank's asset quality, resulting in a change in the lender's risk position to adequate from moderate.

The stable outlook also reflects S&P's view that the ratings will remain stable given the likelihood of government support for the bank. The rating affirmation reflects Hokkoku Bank's ample business position, capital and earnings, and average funding and robust liquidity, among other factors.

S&P could upgrade the bank if the lender is able to consistently maintain its risk-adjusted capital ratio above 10% by reducing risk assets. It could also downgrade the bank if it seems that its risk-adjusted capital ratio will remain below 7% or if its resilience and adaptability to market changes weaken relative to other Japanese banks.

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