Against this backdrop demand is increasing for risk assets
, including shares that were the most oversold assets during market decline.
The rating is further supported by the good balance between capital and risk assets
, which is essential for Mitsubishi's credit quality, given its high risk appetite and less-liquid asset holdings.
But the decline will be temporary, the bank said, considering that the public funds repayment has lightened the overall debt load and also given the bank's limited increase in risk assets
and a favorable domestic business environment.
The bank's total capital adequacy ratio stood at 14.2 percent of risk assets
. Counting only core or tier 1 ratio, capital adequacy stood at 11.3 percent.
The rating upgrade is supported by First Takaful Insurance Company's strong market position along with improvements in the underwriting performance as well as reduction in high risk assets
of the company.
The ratio of risk assets
(maximum loss amount that could be incurred) to equity capital was 0.9 at the end of March 2010, below the target of 1.0.
Moody's said the positive trends that have been taking place at Nikko Cordial Securities, the retail brokerage arm of Nikko Cordial, seem to be well established thanks to an overall increase in the willingness of Japanese retail investors to invest in risk assets
Capital adequacy ratio stood at 14.2 percent of risk assets
while tier 1 or core capital accounted for 13.3 percent of risk assets
If our outlook is correct, global financial markets may currently be discounting an overly pessimistic economic outlook, suggesting that risk assets
may have more room to run.
In the backdrop of heightened credit risk in the economy, risk profile of some of the instruments carried by the fund has experienced weakening; overall high risk assets
are however still considered at manageable levels.
The arm's ratio of core profit -- computed by subtracting general loan-loss reserves and bond-related gains and losses from an operating profit -- to its risk assets
was 1.65 percent as of Sept.