Kroll Bond Rating Agency Assigns Senior Long-Term and Short-Term Debt
Ratings to Sumitomo Mitsui Financial Group, Inc.
NEW YORK -- January 14, 2014
Kroll Bond Rating Agency (KBRA) has assigned senior long-term and short-term
debt ratings of A and K1, respectively, to Sumitomo Mitsui Financial Group,
Inc. (“SMFG”, the “Group”), a bank holding company. In addition, KBRA has
assigned a long-term rating of A+ and short-term rating of K1 to the deposits
of the parent’s wholly-owned subsidiary, Sumitomo Mitsui Banking Corporation
(“SMBC”, the “Bank”). The outlook on all ratings is stable.
The ratings are supported by the Bank’s sound financial fundamentals as
indicated by improving asset quality, healthy capital levels, and an adequate
liquidity profile. The ratings are also reflective of the institution’s track
record through the downturn and its strong market position in Japan. These
strengths are balanced by concerns surrounding remaining nonperforming assets
and pressure on earnings due to the continued low interest rate environment.
The ratings are based on KBRA’sSRS Foreign Bank Methodology, published on
June 10, 2011 andGlobal Bank and Bank Holding Company Rating Methodology,
published on May 2, 2013. This rating was not solicited by SMBC and the Bank
did not participate in the ratings process.
About Kroll Bond Rating Agency
KBRA was established in 2010 by Jules Kroll to restore trust in credit ratings
by creating new standards for assessing risk and by offering accurate, clear
and transparent ratings. KBRA is registered with the U.S. Securities and
Exchange Commission as a Nationally Recognized Statistical Rating Organization
(NRSRO). In addition, KBRA is recognized by the National Association of
Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
Kroll Bond Rating Agency
Marjan Riggi, 646-731-2354
Ashley Phillips, 240-394-4150
Gregory Root, 646-731-2381
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