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Moody’s withdraws A1 rating for perpetual notes of Norinchukin SPC

Fri, 28 Aug 2009 06:57:44 +0000

Tokyo, August 27, 2009 -- Moody's Investors Service has withdrawn the A1
program rating available for perpetual subordinated debt to be issued
under the Subordinated Euro Medium Term Note (EMTN) Program of
Norinchukin Finance (Cayman) Limited (NFCL), a special purpose
corporation of The Norinchukin Bank (Norinchukin).

This action reflects Norinchukin's decision to update its EMTN Program by
removing provisions for the issuance of perpetual notes by the end of
September 2009. In addition, there is no outstanding balance of perpetual
notes issued under the program. For further details, please refer to
Moody's Withdrawal Policy on www.moodys.com.

Moody's last rating action with respect to Norinchukin was taken on June
29, 2009, when the bank's bank financial strength rating (BFSR) was
downgraded to C- from C, long-term ratings were downgraded to Aa3 from
Aa2, the ratings on the Subordinated EMTN Program of NFCL were downgraded
to A1 from Aa3, and the outlook for the ratings was changed to stable
from negative.

The principal methodologies used in the rating of Norinchukin were "Bank
Financial Strength Ratings: Global Methodology" and "Incorporation of
Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology,"
both of which can be found at www.moodys.com in the Credit Policy &
Methodologies directory, in the Ratings Methodologies subdirectory.

Other methodologies and factors that may have been considered in the
process of rating these issuers can also be found in the Credit Policy &
Methodologies directory.

The Norinchukin Bank, headquartered in Tokyo, is the central institution
for Japan's agricultural, forestry, and fishery cooperatives. It had
non-consolidated assets totalling JPY62 trillion as of end-March 2009.

sees challenges ahead for Japan’s export-related issuers

Thu, 20 Aug 2009 10:18:29 +0000

Tokyo, August 20, 2009 -- Moody's Investors Service says fiscal-year,
first-quarter results for Japan's export-related issuers show signs of
stabilization but that challenges remain.

A recently published comment by Moody's notes that FY 1Q09 results
through June for Japan's major automakers, consumer-electronics firms,
steel producers, and chemical companies are broadly in line with the
rating agency's expectations of a significant decline in sales and
profitability on a yearly basis. However, the report points to
improvements from the previous quarter.

Shinsuke Tanimoto, the lead author of the publication and a Senior Vice
President at Moody's, says, "Better quarterly results come mainly from
cost reductions, lower prices for raw materials, improved capacity
utilization, and a slightly depreciated Japanese yen." He adds, "The
government's incentive programs have helped domestic demand recover for
retail products such as automobiles and consumer electronics."

Tanimoto says, "Exporters of cars and consumer electronics reduced their
production in the second half of the fiscal year ending March 2009 to
draw down inventories on hand and at distributors." He adds, "Domestic
steel and chemical manufacturers, which supply part of their output to
such exporters, have also experienced decreased demand."

Nevertheless, the report notes a recent, incipient recovery and explains
that, since the deep trough earlier this year, inventory levels have
risen, and thereby contributed to a recovery in capacity utilization at
manufacturing plants.

Tanimoto says, "While the fiscal year's first quarter showed an
improvement in companies' financial profiles—or at least a reduction in
earlier, sharp declines—we remain cautious about the likelihood of
sustained improvements in profitability and a consequent stabilization of
ratings."

He concludes, "Any positive movement in our ratings will require evidence
of at least several of the following factors: (1) a sustained recovery in
global consumption--not just from demand generated by governments'
initiatives; (2) improvements in the competitive climate, (3)
implementation of restructuring measures that appropriately recalibrate
production to lower demand, (4) restoration of impaired balance sheets,
and (5) a favorable trend in Japan's foreign-exchange rate.

The new report, entitled, "FY 1Q09 Results for Japan's Export-Related
Issuers: Still a long way to go" is available at www.moodys.com.

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Moody’s places NRI’s B1 on review for possible upgrade

Fri, 07 Aug 2009 07:57:26 +0000

Tokyo, August 07, 2009 — Moody’s Investors Service has placed on review

for possible upgrade its B1 issuer and senior unsecured long-term debt

ratings for Nippon Residential Investment Corporation (NRI).

This review follows the announcement on August 6, 2009 by Advance

Residence Investment Corporation (ADR) and NRI on their basic agreement

of an M&A.

Previously, Pacific Holdings, Inc, a sponsor of NRI, filed a petition

with the Tokyo District Court on March 10, 2009 to begin corporate

reorganization proceedings.

NRI believes that the presence of a sponsor company would be necessary

for building a stable financial base and growth strategy in the long

term. NRI is conducting its selection of a new sponsor with the support

of an external advisor.

Clear details on the schedule for the M&A have yet to be revealed, but

Moody’s believes the transaction will facilitate the NRI’s business

restructuring and therefore placed its ratings on review for possible

upgrade.

According to the announcement, ITOCHU Corporation (Baa1), a sponsor of

ADR, will continue to support the new REIT and thus multi-notch upgrades

may occur as its creditworthiness would — assuming the M&A proceeds –

exceed that of NRI.

In its review, Moody’s will focus on the progress of the M&A, the

refinancing of the relevant loans and the redemption of the bonds.

Moody’s previous rating action on NRI took place on February 5, 2009 when

it downgraded the issuer and unsecured senior debt ratings to B1 from Ba2

with a negative outlook. The rating action also takes into account the

fact that NRI’s rated bonds are subordinated to its outstanding

borrowings.

The methodology used in rating REITs was the “Rating Methodology for REITs

and Other Commercial Property Firms” (January 2006) which can be found

at www.moodys.com in the Credit Policy & Methodologies directory, in the

Ratings Methodologies subdirectory.

Nippon Residential Investment Corporation is a Japanese real estate

investment trust investing in and managing residential properties. Its

operating revenues totaled approximately JPY 9.1 billion for the fiscal

half-year ended May 2009.

Moody’s downgrades Aaa rating of one class and affirms all other ratings

Wed, 29 Jul 2009 15:59:57 +0000

Tokyo, July 29, 2009 -- Moody's Investors Service announced today that it
has downgraded to Aa1 from Aaa the Class 3 trust certificates of the
Tokyo Metropolitan CLO Ninth transaction. The trust certificates had been
under review for possible downgrade since May 19, 2009. At the same time,
Moody's says that it has affirmed the ratings of all other outstanding
classes of the following Japanese regional government-related SME CLO
transactions:

- Tokyo Supporters CLO Special Purpose Company,

- Ordinance-Designated Cities CLO Fourth,

- Santoshi CLO2009,

- Yontoshi CLO2 Tokutei Mokuteki Kaisha,

- Santoshi CLO 2009 Tokutei Mokuteki Kaisha, and

- Class 1A, 1B, 1C and 2 of Tokyo Metropolitan CLO Ninth

These transactions are CLO backed by corporate loans extended to SMEs.
Their underlying loans are either fully guaranteed (Tokyo Supporters CLO
Special Purpose Company only), or 80% guaranteed by the Credit Guarantee
Corporation ("CGC") on a loan-by-loan basis. Under the credit insurance
system, the guarantee obligation of CGC is insured by the Japan Finance
Corporation ("JFC") to as much as 70-80% of the guaranteed amount. The
relevant regional governments compensate those CGC guarantee obligations
which exceed JFC's insured amounts.

Specified Bonds issued by Yontoshi CLO2 Tokutei Mokuteki Kaisha is backed
by Class 1 trust certificates issued under Tokyo Metropolitan CLO Ninth
and Ordinance-Designated Cities CLO Fourth. Specified Bonds issued by
Santoshi CLO 2009 Tokutei Mokuteki Kaisha is backed by Class 1 trust
certificates issued under Santoshi CLO2009.

Moody's says that today's rating actions reflect the rating actions taken
against Metropolis of Tokyo, Osaka City Government, and JFC. On July 28,
2009, Metropolis of Tokyo and Osaka City Government were downgraded to
Aa2 from Aa1 (domestic currency), and on July 22, 2009, JFC was
downgraded to Aa2 from Aaa. Metropolis of Tokyo, Osaka City Government,
and JFC had been under review for possible downgrade since May 18, 2009.
In conjunction with the consideration of guarantor credit changes,
Moody's also considered the current underlying pool performance of each
transaction. Specifically, for Tokyo Supporters CLO, the actual default
rate was higher than our initial expected.

As described above, the ability of CGC to perform its guarantee
obligation strongly relies on the credit quality of the relevant regional
governments as well as JFC. However, the downgrade of their ratings to
Aa2 and the changes in the performance of the portfolios only has a
limited impact on all Aaa ratings except for the Class 3 of Tokyo
Metropolitan CLO Ninth Transaction, hence those ratings are affirmed. On
the other hand, for Class 3 of Tokyo Metropolitan CLO Ninth, the credit
enhancement is not sufficient to support a Aaa rating relative to the
current stressed loss rate in combination with the consideration of
guarantor's current credit assessment. As a result, the rating of the
trust certificates was downgraded to Aa1 from Aaa. At the same time, for
Class 3 of same series (Ordinance-Designated Cities CLO Fourth and
Santoshi CLO2009), its Aa1 ratings were affirmed.

The principal methodologies used in rating these transactions were
"Japan's SME CDOs: Focal Points in Rating Analysis and Monitoring,"
"Repackaged Securities (October 2001)," and "Moody's Refines Its
Approach to Rating Structured Notes (July 1997)," which can be found at
www.moodys.com in the Credit Policy & Methodologies directory, in the
Ratings Methodologies subdirectory. Other methodologies and factors that
may have been considered in the process of rating this issue can also be
found in the Credit Policy & Methodologies directory.

Today's rating actions follow:

Tokyo Supporters CLO Special Purpose Company:

(1) Series 1 Class B JPY13,800,000,000 Specified Bonds due November 2010,
Aaa affirmed; previously on March 9, 2005, assigned Aaa

(2) Series 1 Class C JPY4,300,000,000 Specified Bonds due November 2010,
Aaa affirmed; previously on October 11, 2007, upgraded to Aaa from Aa1

Tokyo Metropolitan CLO Ninth:

(3) Class 1A JPY753,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(4) Class 1B JPY753,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(5) Class 1C JPY753,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(6) Class 2 JPY16,768,000,000 Trust Certificates, Aaa affirmed;
previously on March 4, 2008, assigned Aaa

(7) Class 3 JPY8,684,000,000 Trust Certificates, Downgraded to Aa1 from
Aaa; previously on May 19, 2009, Aaa placed under review for possible
downgrade

Ordinance-Designated Cities CLO Fourth:

(8) Class 1A JPY247,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(9) Class 1B JPY247,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(10) Class 1C JPY247,000,000 Trust Certificates, Aaa affirmed; previously
on March 4, 2008, assigned Aaa

(11) Class 2 JPY7,885,000,000 Trust Certificates, Aaa affirmed;
previously on March 4, 2008, assigned Aaa

(12) Class 3 JPY3,971,000,000 Trust Certificates, Aa1 affirmed;
previously on March 4, 2008, assigned Aa1

Santoshi CLO2009:

(13) Class 1A JPY200,000,000 Trust Certificates, Aaa affirmed; previously
on March 12, 2009, assigned Aaa

(14) Class 1B JPY200,000,000 Trust Certificates, Aaa affirmed; previously
on March 12, 2009, assigned Aaa

(15) Class 1C JPY200,000,000 Trust Certificates, Aaa affirmed; previously
on March 12, 2009, assigned Aaa

(16) Class 2 JPY5,085,000,000 Trust Certificates, Aaa affirmed;
previously on March 12, 2009, assigned Aaa

(17) Class 3 JPY3,902,000,000 Trust Certificates, Aa1 affirmed;
previously on March 12, 2009, assigned Aa1

Yontoshi CLO2 Tokutei Mokuteki Kaisha:

(18) Series 1 Class A JPY1,000,000,000 Specified Bonds, Aaa affirmed;
previously on March 4, 2008, assigned Aaa

(19) Series 1 Class B JPY1,000,000,000 Specified Bonds, Aaa affirmed;
previously on March 4, 2008, assigned Aaa

(20) Series 1 Class C JPY1,000,000,000 Specified Bonds, Aaa affirmed;
previously on March 4, 2008, assigned Aaa

Santoshi CLO 2009 Tokutei Mokuteki Kaisha:

(21) Series 1 Class A JPY 200,000,000 Specified Bonds, Aaa affirmed;
previously on March 12, 2009, assigned Aaa

(22) Series 1 Class B JPY 200,000,000 Specified Bonds, Aaa affirmed;
previously on March 12, 2009, assigned Aaa

(23) Series 1 Class C JPY 200,000,000 Specified Bonds, Aaa affirmed;
previously on March 12, 2009, assigned Aaa

Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it
acting on behalf of the offering party. This release is not a
solicitation or a recommendation to buy, hold, or sell securities.

Tokyo
Shinji Yoshizawa
Analyst
Structured Finance Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100

Moody’s assigns A2 ratings to the Sumitomo Corporation’s series 37

Fri, 10 Jul 2009 07:44:21 +0000

Tokyo, July 10, 2009 -- Moody's Investors Service has assigned A2 ratings
to the issue of Series 37 JPY10 billion due 2019 Japan domestic bonds by
Sumitomo Corporation (Sumitomo). The rating outlook is stable. These are
takedowns from the company's JPY200 billion domestic shelf registration
of December 2007, which is rated (P)A2.

The A2 ratings for Sumitomo are supported by the company's 1) diversified
business portfolio, with a relatively low dependence on earnings from
the energy and metal segments, 2) strong commitment to risk management
and internal control. The ratings also incorporate Sumitomo's leveraged
balance sheet and the fundamental business risks inherent to a Japanese
trading company.

Moody's last rating action with respect to Sumitomo was taken on June 5,
2006, when the senior unsecured debt and issuer ratings were upgraded to
A2 from A3. At the same time, Moody's has upgraded the long-term ratings
of the company's supported subsidiaries to A2 from A3.

Sumitomo's rating was assigned by evaluating factors we believe are
relevant to its credit profile, such as franchise value, risk
positioning, operating and regulatory environment, and financial
fundamentals versus its competitors, as well as the company's projected
performance in the near to medium term. These attributes were compared to
those of other issuers both inside and outside its core industry.

Headquartered in Tokyo, Sumitomo Corporation is one of the largest
Japanese Trading Companies.

Tokyo
Tetsuya Yamamoto
Vice President - Senior Analyst
Financial Institutions Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100

Moody’s reviews Restay Hotels TMK deal for possible downgrade

Mon, 22 Jun 2009 17:54:50 +0000

Approximately JPY 2.2 billion in a mezzanine specified loan and a
specified bond affected

Tokyo, June 22, 2009 -- Moody's Investors Service has placed under review
for possible downgrade the ratings of Restay Hotels Tokutei Mokuteki
Kaisha's Mezzanine Specified Loan and Specified Bond. Final maturity will
take place in May 2014.

Mezzanine Specified Loan, Baa1 placed under review for possible
downgrade; previously, Baa1 assigned on May 18, 2007

Specified Bond, Baa1 placed under review for possible downgrade;
previously, Baa1 assigned on May 18, 2007

This transaction is backed by 19 leisure hotels, which are operated by
Restay Co., Ltd. and are located all over Japan. The deal features a
scheduled amortization and an operator replacement trigger if the
operator's performance declines below a certain level.

The rating action reflects Moody's view regarding the uncertainty of the
leisure hotels' performance, given that the assets have underperformed
our expectation in light of the ratings assigned to the Mezzanine
Specified Loan and Specified Bond.

As consumer spending continues to weaken, leisure hotels are facing
declines in 1) revenue per customer, 2) the length of stay, and 3) the
number of customers, etc. In Moody's view, the performance of the
operator in this transaction is better than the market average, but its
profitability will be negatively affected by the ongoing recession, as
will that of the industry overall.

In its review, Moody's will examine the operator's measures to improve
the profitability of the hotels in light of the difficult business
environment.

The principal methodology used in rating the transaction was "Moody's
Approach to Rating Japanese Whole Business Securitizations" (April 2007),
which can be found at www.moodys.com in the Credit Policy &
Methodologies directory, in the Ratings Methodologies subdirectory.

Other methodologies and factors that may have been considered in the
process of rating this issue can also be found in the Credit Policy &
Methodologies directory.

Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it
acting on behalf of the offering party. This release is not a
solicitation or a recommendation to buy, hold or sell securities.

moody’s assigns Aaa to Japan Finance Organization for Municipalities’ bond

Tue, 09 Jun 2009 14:51:59 +0000

oody's assigns Aaa to Japan Finance Organization for Municipalities' bond
due 2019; under review for possible downgrade along with other public
issuers in Japan

Total Amount of Debt Rated is Yen 25 Billion

Tokyo, June 09, 2009 -- Moody's Investors Service has assigned a Aaa
rating to Japan Finance Organization for Municipalities' (JFM) Series 1
Japanese Yen 25 billion domestic senior debt due 2019. At the same time
the rating has been placed under review for possible downgrade, as
Moody's considers the appropriateness of the public sector support anchor
(currently the Aaa Local Currency Deposit Ceiling), in accordance with
the unification of the central government's foreign and domestic currency
ratings at Aa2. This review was not triggered by a change in JFM's
stand-alone credit profile. This issue is a domestic yen bond without a
government guarantee.

JFM is the only specialized public institution providing low-cost,
long-term funds to local governments in Japan. JFM has expanded its
scope of operations to include loans to the general accounts, in addition
to public enterprise accounts, of Japanese regional and local
governments, following the conversion from the old JFM on June 1, 2009.

Moody's last rating action with respect to JFM was taken on May 18, 2009,
when the Aaa foreign and local currency issuer ratings were placed under
review for possible downgrade.

Moody’s updates profiles of Japanese CMBS loans

Tue, 26 May 2009 03:18:55 +0000

Tokyo, May 26, 2009 -- Moody's Investors Service has released a report
entitled,"Profile of Japan CMBS Loans: Updated as of End-March 2009."

This report updates "Profile of Japan CMBS loans maturing in 2009 and
thereafter (As of End-September 2008)."

The updated review compares the profiles of loans -- as of end-September
2008 and as of end-March 2009 -- that will mature in calendar 2009 and
afterwards, and that back Moody's-rated CMBS (JPY 3.7 trillion end-March
2009).

It also reviews the profiles of loans paid between end-September 2008 and
end-March 2009, and delinquent loans as of end-March 2009.

"As of end-September 2008, about JPY 700 billion in loans were scheduled
to mature in 2009, and by end-March 2009, this amount had declined to
about JPY 490 billion," says Mitsuru Sukigara, a Moody's VP and Senior
Analyst.

"This was primarily the result of scheduled payments of loans; the
extension from 2008 to 2009 of loan maturities; and defaults of loans
that should have matured in 2009. Additionally, the highest level of
loans -- amounting to JPY 1.18 trillion -- will mature in 2010," says
Sukigara.

"Our review of paid and delinquent loans highlighted a number of
characteristics, including leverage, year of origination, property type,
and location. We found that delinquent loans had higher leverage ratios
and had been originated more recently. In addition, fewer of their
collateral properties were in Tokyo," says Sukigara.

For more information, please refer to the report, which can be accessed
at www.moodys.com

Moody's Investors Service is a publisher of rating opinions and research.
It is not involved in the offering or sale of any securities, nor is it
acting on behalf of the offering party. This release is not a
solicitation or a recommendation to buy, hold, or sell securities.