Moody's changes Nomura view to negative

Moody's Japan K.K. said it affirmed the Baa1 long-term issuer and senior unsecured debt ratings of Nomura Holdings, Inc. and the Baa1 backed senior unsecured debt ratings of Nomura America Finance, LLC, as well as the A3 issuer ratings of Nomura Securities Co., Ltd.

At the same time, Moody's has changed the outlook to negative from stable reflecting Nomura's higher-than-anticipated risk appetite or potential deficiencies in its risk management process, as highlighted by a material loss from a client related transaction in its US subsidiary.

The loss also highlights the ongoing challenges Nomura faces in improving and stabilizing its profitability particularly in its international wholesale business, without engaging in high-risk activities, Moody’s said.

The rating action is in response to Nomura's announcement on March 29 that it could incur approximately $2 billion in losses arising from transactions with a U.S. client.

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