Fitch cuts Mizuho Financial to A

Fitch Ratings said it downgraded Mizuho Financial Group and its subsidiary banks. The downgraded ratings include its long-term foreign- and local-currency issuer default ratings to A from A+ and senior unsecured debt ratings to A from A+ and preferred securities ratings to BBB- from A.

The bank's long-term foreign- and local-currency issuer default ratings have been removed from rating watch negative, but the ratings on preferred securities remain on rating watch negative. The group's short-term foreign- and local-currency issuer default ratings have been affirmed at F1.

The downgrade follows the agency's ongoing review of the three Japanese major bank groups' performance and prospects, Fitch said.

The downgrade also reflects the severe impact of a worsening operating environment in the wake of the domestic and international recession, the agency said. The adverse environment resulted in the group's worse-than-expected performance in the financial year that ended March 2009, Fitch said, and weakened capital quality.

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