Moody's downgrades Japanese banks


UFJ Bank and UFJ Trust Bank are among six Japanese banks to be downgraded by ratings agency Moody's

By Jane Searle

TOKYO, Japan (CNN) -- International ratings agency Moody's Investors Service says it has downgraded the financial strength ratings of six major Japanese banks.

The six banks are Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Mizuho Corporate Bank, UFJ Bank and UFJ Trust Bank.

The Bank of Tokyo-Mitsubishi was downgraded from D to D-. The other five were lowered from E-plus to E, the lowest score.

Moody's said the ratings revision took into account a deterioration of the banks' financial fundamentals. The ratings agency said it expected government support would be extended to the banks, especially for deposits and senior bank obligations.

Moody's said the downgrades reflected the banks' "very weak and low quality economic capitalization" and large deferred tax credits.

It said that in its assessment, the banks' financial fundamentals "will continue to require a high level of external support", amid the weak business environment