(MarketWatch) -- Shares of Japanese banks managed gains early Thursday despite Fitch ratings' announcement earlier that it may cut its assessments of the country's three biggest banks due to concerns about their profitability.
The credit ratings agency said it placed Mizuho Financial Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group and some of their subsidiaries on negative ratings watch, indicating it sees a greater potential for cutting their ratings.
"The rating actions reflect Fitch's concern about increasing downward pressure on the major bank groups' individual financial strengths as asset quality, capital quality, and core business profitability continue to be negatively impacted by the macroeconomic recession," Fitch said in a statement.
Despite the action, Mitsubishi UFJ was up 0.4%, Mizuho rose 1%, and Sumitomo Mitsui added 0.8% in the first hour of trading.
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