Moody’s cuts Development Bank of Japan, Shoko Chukin

Moody’s Japan K.K. said it downgraded the ratings of the Development Bank of Japan Inc. and Shoko Chukin Bank, Ltd. to A1, with a stable outlook, from Aa3.

The downgrade actions follow and are in response to Moody's downgrade of the Government of Japan rating to A1, with a stable outlook, from Aa3. Both Development Bank of Japan and Shoko Chukin are Japanese government related issuers.

Moody’s said this action was solely prompted by its decision to downgrade Japan’s rating. Accordingly, the downgrades of these government related issuers’ ratings do not reflect any change in their standalone credit fundamentals and any change in their strong relationship with Japan.

The stable outlooks for these government related issuers reflect the outlook of Japan’s rating. The government related issuers are constrained by the government's debt rating.

Moody's continues to apply its Joint Default Analysis approach. The probability of support from, and the dependence on, Japan for these two government related issuers remain very high; thus, their final ratings are the same as the government's rating.

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