May 14 -

-- Standard & Poor's revised its outlook on JPMorgan Securities Japan to negative from stable, reflecting the outlook revision on U.S.-based JPMorgan Chase & Co. (JPM) and its banking subsidiaries. We affirmed the ratings at 'A+/A-1'.

-- Under our rating criteria, the company is categorized as a "core" subsidiary of JPM based on its strong integration with its parent.

-- We equalized the rating on the Japanese subsidiary with the ratings on the group's core operating banks, reflecting our view that the company is very likely to receive group support when necessary.

Standard & Poor's Ratings Services today revised its outlook on the long-term counterparty rating on JPMorgan Securities Japan to negative from stable. This reflects the outlook revision on U.S.-based JPMorgan Chase & Co. (JPM; A/Negative/A-1) and its banking subsidiaries (for more information, please see "JPMorgan Chase & Co. And Banking Subsidiaries Outlook Revised To Negative On Unexpected Loss; Ratings Affirmed," published on May 11, 2012). At the same time, we affirmed the long-term counterparty rating on JPMorgan Securities Japan at 'A+' and the short-term counterparty rating at 'A-1'.

The rating on JPMorgan Securities Japan is based on its status as a "core" subsidiary of JPM, the holding company of the group. Under our group rating methodology for financial institutions, the rating on a core subsidiary is generally equalized with the group credit profile (GCP), which is Standard & Poor's opinion of a group's creditworthiness, as if the group were a single legal entity, and is conceptually equivalent to an issuer credit rating. We generally equalize the rating on a core subsidiary and the GCP to reflect our view that the core subsidiary is very likely to receive support from the rest of the group when necessary. The rating on JPMorgan Securities Japan is equal to the ratings on JPM's core operating banks, reflecting the GCP.

We may lower the rating on JPMorgan Securities Japan if we lower JPM's GCP; or if we believe that JPMorgan Securities Japan's integration with the group has weakened or the probability of extraordinary support from the parent has deteriorated. Conversely, we may revise the outlook to stable if the prospects for JPM's GCP improve.

RELATED CRITERIA AND RESEARCH

Group Rating Methodology And Assumptions, Nov. 9, 2011.

Banks: Rating Methodology And Assumptions, Nov. 9, 2011.

Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011.

Principles Of Credit Ratings, Feb. 16, 2011.