Fitch Ratings has assigned a short-term rating of 'F1' to Mizuho Markets Cayman LP's (MMC) USD100 million and USD50 million senior unsecured notes maturing 9 December 2022 and 3 January 2023, respectively.

The notes are issued under the USD5 billion medium-term note programme guaranteed by Japan-based Mizuho Bank, Ltd. (A-/Stable/F1), as described in the Base Offering Memorandum dated 31 August 2021.

The senior unsecured notes will constitute a direct, unsecured, unconditional and unsubordinated obligation of MMC and, by way of the guarantee, Mizuho Bank.

MMC is a wholly owned subsidiary of Mizuho Americas LLC, a US bank holding company that is wholly owned by Mizuho Bank, a core operating banking arm of Mizuho Financial Group, Inc. (A-/Stable/F1).

Key Rating Drivers

The rating on the guaranteed notes is aligned with the Short-Term Issuer Default Rating (IDR) of the guarantor, Mizuho Bank, in line with Fitch's criteria, as the repayment of principal, interest and all other amounts payable are unconditionally and irrevocably guaranteed by Mizuho Bank.

For the key rating drivers and rating sensitivities for Mizuho Bank, please see Fitch Affirms MHFG and Subsidiaries at 'A-'; Outlook Stable.

Rating Sensitivities

Factors that could, individually or collectively, lead to negative rating action/downgrade:

Negative rating action on the Short-Term IDR on Mizuho Bank will lead to similar action on the rating on MMC's guaranteed notes.

Factors that could, individually or collectively, lead to positive rating action/upgrade:

Positive rating action on the Short-Term IDR on Mizuho Bank will lead to similar action on the rating on the guaranteed notes.

Best/Worst Case Rating Scenario

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579

Summary of Financial Adjustments

Mizuho Bank's total assets and total liabilities exclude acceptances and guarantees under Japan's generally accepted accounting principles balance sheet to be globally comparable.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Public Ratings with Credit Linkage to other ratings

The rating of MMC's guaranteed senior unsecured notes is directly linked to the IDR of the guarantor, Mizuho Bank.

ESG Considerations

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

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