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 that it has secured ¥350 billon in new preferred stocks for the purpose of repaying part of its outstanding balance of ¥1,998.8 billion of government-owned preferred shares. As the proceeds from the issuance will be transferred to other capital surplus, while simultaneously reducing stated capital and capital surplus, there will be no impact on the absolute volume of capital, the agency said.

When the reduction of public funds from its capital structure occurs, Fitch said it will improve the quality of its capital base, although its capital structure still relies heavily on public funds.

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