Mitsubishi UFJ Financial Group Inc.¡¯s main banking unit was among five Japanese lenders downgraded by Moody¡¯s Investors Service after it cut the nation¡¯s credit rating.
Bank of Tokyo-Mitsubishi UFJ Ltd., Mitsubishi UFJ Trust and Banking Corp., Sumitomo Mitsui Banking Corp., Shizuoka Bank Ltd. and Chugoku Bank Ltd. were all cut one level to A1 with a stable outlook, Moody¡¯s said in a statement Tuesday.
Moody¡¯s on Monday lowered Japan¡¯s rating to A1, the fifth-highest grade, citing uncertainty over whether Prime Minister Shinzo Abe¡¯s administration will achieve its deficit-reduction goals and succeed in boosting growth.
¡°The rating actions reflect Moody¡¯s view that in Japan the capacity of the government to support banks is best measured by its own debt rating,¡± the U.S. company said Tuesday.
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