Fitch upgrades Nomura

Fitch Ratings said it upgraded and equalized the long-term and short-term issuer default ratings of Nomura Holdings, Inc. and its wholly owned subsidiary, Nomura Securities Co., Ltd.

The agency upgraded Nomura Holdings' long-term foreign- and local-currency issuer default ratings to A- from BBB, short-term foreign- and local-currency issuer default ratings to F1 from F2 and senior debt to A- from BBB. The agency also affirmed its viability rating at BBB.

Nomura Securities' long-term foreign- and local-currency issuer default ratings were upgraded to A- from BBB+ and short-term foreign- and local-currency issuer default ratings to F1 from F2.

The agency also affirmed Daiwa Securities Group Inc.'s long-term foreign- and local-currency issuer default ratings at BBB+, short-term foreign- and local-currency issuer default ratings at F2 and viability rating at BBB+. Fitch also affirmed wholly owned subsidiary Daiwa Securities Co. Ltd.'s long-term foreign- and local-currency issuer default ratings at BBB+, short-term foreign- and local-currency issuer default ratings at F2, viability rating at BBB+ and senior debt at BBB+.

The outlooks on all companies are stable.

The upgrades reflect a reassessment of the domestic systemic importance of Japanese securities firms following revisions made to the Deposit Insurance Law passed by Japan's parliament in June 2013 and due to come into force by the end of March 2014, Fitch said.

Until now, there had been no legal framework to make financial support available for non-bank financial institutions under the insurance law, the agency said.

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