21-D-1076
December 10, 2021

Aichi Bank to Integrate Management with Chukyo Bank—No
Immediate Impact on Rating; JCR Will Pay Attention toProgress in Integration, etc.
The following is Japan Credit Rating Agency, Ltd. (JCR)'s opinion on the management integration
between The Aichi Bank, Ltd (security code: 8527) and The Chukyo Bank, Limited (security code: 8530).
(1) The Aichi Bank, Ltd. (the "Bank") and The Chukyo Bank, Limited ("Chukyo Bank") today have reacheda basic agreement to proceed with discussions and considers regarding the establishment of aholding company through a joint share transfer and the future merger of the two banks under theholding company. The basic policy is to establish the holding company that will have the two banks
as wholly-owned subsidiaries under its umbrella around at October 3, 2022, and to merge themapproximately two years after the share transfer. As of the end of September 2021, the Bank has
consolidated total asset of approximately 4.0 trillion yen and Chukyo Bank has approximately 2.3
trillion yen. Both two banks have their main operation bases in Aichi Prefecture, and the marketingshare in the prefecture based on the total deposits and loans will be the largest among regional banks.
(2) Under the joint holding company, the two banks plan to promote business operations on a group-widebasis with an eye to future merger. Given the strong links between the two banks in terms ofmanagement, JCR will reflect the creditworthiness of the new financial group created by themanagement integration in the ratings of the two banks. JCR believes that the profitability indicatorsand financial structure of the new financial group will deteriorate compared to that of the Bank on anon-consolidated basis, but the extent of the deterioration will be limited at this point. In addition tothe progress of the management integration going forward, JCR will focus on impact of the integrationon the both banks' performance and financials, etc. JCR today placed the rating on the Chukyo Bank
under the Credit Monitor with Positive direction. (For the details, please refer to JCR’s press release21-D-1075)
Michiya Kidani, Kei Aoki
<Reference>Issuer: The Aichi Bank, Ltd.
Long-term Issuer Rating: A

Outlook: Stable

Issuer: The Chukyo Bank, LimitedLong-term Issuer Rating: #A-/Positive

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026
Information herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well as other factors,
JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, completeness or merchantability, or fitness for any particular purpose, with respect to any suchinformation, and is not responsible for any errors or omissions, or for results obtained from the use of such information. Under no circumstances will JCR be liable for any special, indirect, incidental orconsequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract, tort, strict liability or otherwise, and whether
such damages are foreseeable or unforeseeable. JCR's ratings and credit assessments are statements of JCR's current and comprehensive opinion regarding redemption possibility, etc. of financial obligations
assumed by the issuers or financial products, and not statements of opinion regarding any risk other than credit risk, such as market liquidity risk or price fluctuation risk. JCR's ratings and credit assessments
are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions to purchase, sell or hold any securities such as individual bonds or commercial paper.
The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in or unavailability of information as well as other factors. JCR receives a rating fee paid by issuers for
conducting rating services in principle. JCR retains all rights pertaining to this document, including JCR's rating data. Any reproduction, adaptation, alteration, etc. of this document, including such rating
data, is prohibited, whether or not wholly or partly, without prior consent of JCR.
JCR is registered as a "Nationally Recognized Statistical Rating Organization" with the U.S. Securities and Exchange Commission with respect to the following four classes. (1) Financial institutions, brokers
and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.
JCR publishes its press releases regarding the rating actions both in Japanese and in English on the same day. In case that it takes time to translate rating rationale, JCR may publicize the summary version,
which will be replaced by the full translated version within three business days. (Regarding Structured Finance products, JCR only publicize the summary version in English.)

1/1
Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.