Fitch Ratings on Thursday said it may cut its ratings on Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group, citing pressure on the banks’ asset quality and capital levels.

“Core business profitability continue to be negatively impacted by the macroeconomic recession to which the major banks, by their size, have a high correlation,” Fitch said in a statement.

Weaker corporate performance, increasing bankruptcies and declining property prices, as well as the weaker domestic and international macroeconomic environment, are all likely to weigh on the banks financial results this year, Fitch said. Read the rest of this entry »