DBRS Places Sumitomo Mitsui Banking Corporation and Related Entities Short-Term Rating Under Review with Negative Implications

DBRS has today placed the Sumitomo Mitsui Banking Corporation (SMBC or the Company) and Related Entities’ Short-Term Instruments rating Under Review with Negative Implications. This rating action follows DBRS’s announcement that it has removed the rating floor for critically important banking organizations (CIBs) in Japan (see “DBRS Removes Japan Rating Floor”, published October 9, 2013, for further details). The review of SMBC’s short-term rating will assess the impact of the removal of the rating floor.

When the Japanese rating floor was initially assigned on May 29, 2009, SMBC’s Short-Term Instruments rating benefited from a one-notch uplift, from R-1 (low) to R-1 (middle). Following an assessment of the applicability of the rating floor for CIBs in Japan, DBRS removed Japan’s rating floor on October 9, 2013. Consequently, SMBC’s Short-Term Instruments rating has been placed Under Review with Negative Implications and will likely return to its rating prior to the one-notch uplift. Also, DBRS notes that SMBC’s Issuer Rating and Long-Term Deposits & Senior Debt rating of “A”, with a Stable trend, will be unaffected by the removal of rating floor in Japan. The review is expected to be completed within 90 days.

Notes:
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Global Methodology for Rating Banks and Banking Organisations (June 29, 2012) and DBRS Criteria: Intrinsic and Support Assessments (February 11, 2009), which can be found on our website under Methodologies.