Mizuho Bank senior notes receive Fitch 'A' rating

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Mizuho Bank Fitch 'A' rating

Highlights

Fitch assigned an 'A' rating to notes issued under Mizuho Bank's USD10 billion senior bank note programme, guaranteed by Mizuho Bank, Ltd., New York Branch.
Fitch expects Mizuho Financial Group's resolution debt buffer to remain within 10% to 15% of risk-weighted assets, standing at 13.6% at end-March 2026.
Possible rating changes hinge on Mizuho Bank's Viability and Government Support Ratings and resolution debt buffer fluctuations, with Japan's A/Stable sovereign rating as a limiting factor.

Programme structure and rating rationale

As reported by Fitch Ratings, the notes are issued under Mizuho Bank's USD10 billion senior bank note programme and are guaranteed by Mizuho Bank, Ltd., New York Branch, as set out in the offering circular.

The agency says the securities constitute unsecured and unsubordinated obligations of Mizuho Bank and the guarantor. Fitch rates the notes one notch above Mizuho Bank's Viability Rating, which serves as the anchor rating, citing a lower expected probability of default for these obligations than for the bank's standalone credit profile.

That view is based on Fitch's expectation that the bank's senior creditors would benefit from resolution debt held at Mizuho Financial Group, Inc., rated A-/Stable. Fitch says that buffer stood at 13.6% of risk-weighted assets at the end of March 2026 and expects it to remain within a 10% to 15% range.

Downgrade and upgrade triggers

The rating agency says the note rating could be downgraded if both Mizuho Bank's Viability Rating and its 'a-' Government Support Rating are lowered, reducing the anchor rating. A downgrade could also follow if the group's resolution debt buffer falls below 10% of risk-weighted assets and stays there, or if Fitch no longer expects senior creditors to benefit from debt held at the parent level.

An upgrade is possible if Mizuho Bank's Viability Rating or Government Support Rating is raised, or if the group's resolution debt buffer rises sustainably above 15% of risk-weighted assets. Fitch adds that Japan's sovereign rating of A/Stable would factor into any positive action because of Mizuho's high exposure to the sovereign, and any uplift above the bank's Viability Rating would be capped at one notch when that rating is in line with or above Japan's sovereign rating.

Fitch says its committee date for the rating action was 6 October 2026. The agency also says ESG considerations carry a highest relevance score of '3', indicating they are credit-neutral or have only minimal credit impact on the rating decision.

Our earlier article on Hainan Rubber’s proposed subordinated perpetual sustainable securities explained how Fitch assessed the refinancing plan via Halcyon Agri and why the instruments were rated below the issuer rating. We highlighted the key drivers behind the rating, including subordination and coupon deferral features, alongside the group’s leverage and liquidity profile and the role of expected support within its parent linkage framework.

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