Fitch Ratings said Tuesday it has left unchanged the credit ratings of 10 Japanese banks, including a holding company, in anticipation that the Japanese government will extend support if needed.
"In general, the quality of capital at Japan's major banks is poor, consisting largely of deferred tax assets and government-held preferred securities," Fitch said.
Fitch remains cautious about the outlook for the Japanese economy, stating that the banks' "bottom line profitability and capital ratios will remain vulnerable to domestic stock price volatility for some time."