Moody’s Ratings has reviewed Norinchukin’s credit rating and is considering downgrading it, citing the Japanese bank’s perceived large losses from selling foreign bonds.
The unlisted agricultural bank warned last month that it could face losses of ¥1.5 trillion ($9.3 billion) this fiscal year as it sells U.S. and European government bonds that lost value after interest rates rose.
Any downgrade by Moody’s could put pressure on Norinchukin’s borrowing costs, which are already higher than yields on much of its foreign bond portfolio. The move comes days after S&P Global Ratings cut its outlook on the bank’s debt to negative, citing risks to earnings.
