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Fitch Rates Mizuho's USD Basel III Subordinated Notes Final 'BBB' 

October 15, 2015

Reuters

Fitch Ratings has assigned a final rating of 'BBB' to the USD 750m Basel III-compliant Tier 2 10-year subordinated notes issued by Mizuho Financial Group, Inc. The notes will constitute unsecured and subordinated obligations of Mizuho and rank pari passu among themselves, and equally with all other present and future unsecured, unconditional and dated subordinated obligations. The notes are scheduled to mature on 20 October 2025. They carry a fixed coupon of 4.353% annually. The notes include a non-viability clause and will qualify as Tier 2 capital for Mizuho. The proceeds will be used as a subordinated loan to its core banking subsidiary, Mizuho Bank, Ltd. For MHBK, the subordinated loan from Mizuho will qualify as Tier 2 capital. KEY RATING DRIVERS Fitch rates the notes two notches below Mizuho's Long-Term Issuer Default Rating (IDR). This reflects their poor recovery prospects relative to senior unsecured instruments given their subordination and the prospect of full and permanent write-down of the securities upon Mizuho reaching the point of non-viability (PONV).

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