Moody's downgrades Nomura

Moody's Investors Service said it downgraded the long-term debt ratings of Nomura Holdings to Baa3 from Baa2 and the long-term debt ratings of Nomura Securities to Baa2 from Baa1.

The prime-2 short-term debt rating of Nomura Securities was affirmed and the outlook on all of the ratings is stable.

These actions conclude a review that began in November 2011 and was extended in February when the agency announced a broader review of 17 banks and securities firms with global capital markets operations, Moody's said.

While the agency said it recognizes the progress being made in Nomura's recent restructuring efforts and its well-established retail and wholesale franchise in Japan, the downgrades consider the challenges facing Nomura's institutional wholesale activities and a reassessment of the risks inherent in the business model of global investment banks.

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