Moody's reduces ratings of two Japanese banks.

Moody's Reduces Ratings Of Two Japanese Banks

Moody's Investors Service announced yesterday that it down-graded the long-term credit ratings of two Japanese banks, affecting over $9 billion in debt.

The company lowered the ratings of the Long-Term Credit Bank of Japan Ltd. from A1 to A2 and the Mitsui Taiyo Kobe Bank Ltd. from Aa3 to A1.

Moody's said reasons for the downgrades included declining asset quality as result of troubled real estate loans and, in the case of Mitsui Taiyo Kobe, slow profit growth due to financial deregulation in Japan.