but stable outlook a relief
TOKYO (Reuters) Moody Investors Service cut its debt rating on Nomura Holdings by one notch to just one level above speculative or grade, but set the outlook at stable, giving Japan top investment bank some breathing room to carry out reforms.
A man passes a branch of Nomura Securities in Tokyo November 1, 2011. REUTERS/Yuriko Nakao
Moody had flagged the likely one notch downgrade to Baa3 last month when it warned buy canada goose jacket it may cut the canada goose uk black friday credit ratings of 17 global financial institutions to reflect the euro zone debt uk canada goose outlet crisis and generally tough conditions facing investment banks.
By setting Nomura rating outlook at stable, Moody has indicated that in principle it won change the rating for 12 to 18 months. Canada Goose Coats On Sale A negative outlook would have put a downgrade to in sight, potentially making some buy canada goose jacket cheap counterparties wary of doing business with canada goose black friday sale the bank, analysts have said.
the outlook at stable there is now a certain level canada goose clearance sale of comfort about the rating situation, Canada Goose Outlet said Deutsche Canada Goose Online Securities analyst Masao Muraki, noting that Standard Poor has also set its outlook at stable. risk of a credit downgrade over the near to mid term has receded.
The downgrade comes despite Nomura return to profit in the October December canada goose coats on sale quarter, when it benefitted from a recovery in its overseas fixed income business and started and savings from a $1.2 billion cost cutting plan launched last year.
Nomura has been forced to restructure its business after a global expansion that began with the purchase of the Asian canada goose factory sale and European businesses of canada goose uk outlet failed Wall Street bank Lehman Brothers cheap Canada Goose in 2008 was derailed by the European debt crisis.
Moody said Nomura had canada goose clearance made progress, predicting the cost cuts would boost future cheap canada goose uk performance. It also noted the strength of its retail uk canada goose network in Japan and factored in a probability of government support were Nomura Cheap Canada Goose Jackets to ever fall into financial trouble and need an injection of funds.
But the ratings agency said the Baa3 rating, which puts Nomura on par with struggling domestic rival Daiwa Securities Group, Canada Goose Jackets reflected its worries over canadian goose jacket the long term profitability of canada goose uk shop its overseas capital markets businesses.
considers that there remains uncertainty about the long term positioning and profitability of Nomura international capital market activities, given its weaker market share compared with those of global peers, canadagooseoutleta Moody said in a statement.
Nomura stock was unmoved by the downgrade, closing the morning session in Tokyo unchanged at 400 yen. It has nearly doubled since tumbling Canada Goose Parka as Canada Goose sale low as 223 on November 24, two weeks after Moody put Nomura on review for possible downgrade, triggering worries in the canada goose market about a potential two notch cut.
Moody extended the review of Nomura in mid February when it launched a broader review of global banks.
Nomura has repeatedly played down the potential negative impact of a ratings downgrade, noting that it has already secured funds to meet refinancing needs going out four quarters and the cushion provided by a $72 billion liquidity Canada Goose online pool.
Chief Operating Officer canada goose store Takumi Shibata told analysts in February that Nomura would need to put up canada goose coats just 10 to 20 billion yen in additional collateral for existing derivatives contracts in the case of a one notch cut. He said a downgrade would have virtually no impact on its business.
maintains a solid platform across its Retail, Asset Management, and Wholesale businesses. Our robust capital base and abundant liquidity position us well to respond to the ongoing challenges facing the investment banking industry, Nomura said in a statement on Friday in response to Moody decision. ($1 = 83.2900 Japanese yen).