S&P lowers Daiwa to negative

Standard & Poor’s said it revised the outlooks on the long-term counterparty credit ratings on Daiwa Securities Group Inc., Daiwa Securities Co. Ltd. and BOT Lease Co. Ltd. to negative from stable.

The agency also said it affirmed the long-term counterparty credit ratings on Daiwa Securities Group and BOT Lease at BBB+ and short-term counterparty credit ratings at A-2.

The agency also said it affirmed the long-term counterparty credit ratings on ACOM Co. Ltd. at BBB- and its short-term rating at A-3.

The outlook is stable.

The outlook revision reflects growing economic risk in the Japanese market as the economy recovers at a slower pace than originally expected, S&P said.

This may hurt the performance of Japan’s securities brokerages and finance companies because interest margins and asset quality may decline, the agency said.

S&P also said it may also reduce earnings opportunities in the capital-market business.

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