Nomura Holdings Inc.¡¯s credit rating was raised by Moody¡¯s Investors Service for the first time since November 2005 as Japan¡¯s largest brokerage showed improved profitability.
The company¡¯s long-term rating was increased by two levels to Baa1 from the lowest investment grade of Baa3, Moody¡¯s said in a statement Wednesday. Nomura¡¯s capitalization had benefited from a cost-reduction program and lower holdings of illiquid assets, the agency said.
The move follows the ratings company¡¯s two downgrades of Nomura since 2009, when securities firms worldwide were roiled by the global financial crisis. Chief Executive Officer Koji Nagai has pared expenses and overseen a profit resurgence since he took the post in August 2012, although earnings growth has stalled this year as waning demand for Japanese stocks erodes brokerage commissions.
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