DBRS Confirms Ratings of Mizuho Corporate Bank, Ltd. and Related Entities, Trends Remain Positive

DBRS has today confirmed the Short Term Instruments and Long-Term Deposits and Senior Debt ratings of Mizuho Bank, Ltd., Mizuho Corporate Bank, Ltd. and Mizuho Corporate Bank (Canada) at R-1 (low) and “A,” respectively. All trends remain Positive.

The Positive trends remain supported by ongoing improvements in the capital quality of consolidated Mizuho Financial Group, Inc. (Mizuho or the Group).

After reporting steady improvement in recent years, the Group recorded a modest decline in earnings for the year ended March 31, 2007, largely as a result of unusual costs in the fourth quarter, and a further decline in its first quarter results (ended June 30, 2007) caused by higher credit costs, weak trading operations and weak non-interest income, among other factors.

DBRS expects Mizuho to report improvements in earnings and earnings quality as the year progresses. While management expects the Bank of Japan’s (BOJ’s) higher interest rate policy will have positive effects on margins, particularly deposit margins, DBRS anticipates ongoing pressure on lending margins as the domestic lending environment is expected to remain extremely competitive.

While Mizuho has made significant improvements in both its capital levels and the quality of capital in recent years, DBRS feels further strengthening, particularly in the area of capital quality, are necessary prior to a ratings upgrade. Mizuho’s capital levels remain low by international standards, particularly given the Group’s high levels of business lending and equity exposure.

Mizuho’s Long-Term Deposit and Senior Debt rating is composed of an Intrinsic Assessment of A (low) and a Support Assessment of SA2; the SA2 rating, which reflects the expectation of systemic and timely external support by the government of Japan, results in an uplift of the final rating by one notch to “A”.

DBRS expects the ratings of Mizuho Corporate Bank (Canada) to be discontinued following the sale of substantially all of its assets to a newly-formed Canadian branch of Mizuho Corporate Bank, Ltd. (subject to regulatory approvals).