S&P: Sumitomo Mitsui bonds A+

Standard & Poor’s said it assigned an A+ debt rating to the dollar-denominated bonds issued by Sumitomo Mitsui Banking Corp.

The long-term counterparty credit rating on the company reflects the bank’s consolidated financial profile, as well as the consolidated financial profile and market position of its parent company, Sumitomo Mitsui Financial Group Inc.

This is because the businesses of Sumitomo Mitsui Banking and other group companies are highly related, S&P said, and the holding company retains the ability to reorganize the entity and to reallocate capital within the group.

The company maintains a strong competitive position in the markets in which it operates, which leads us to a strong assessment of its business position, the agency said.

The company’s loan portfolio growth is likely to remain stagnant, while S&P said it expects the quality of its loan assets to remain stable.

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