News Column

Moody's assigns (P)Aa3 to JFC's domestic shelf registration programme

April 24, 2014



Moody's Japan K.K. has assigned a (P)Aa3 rating

to the domestic shelf registration programme of Japan Finance Corporation

(JFC). The rating outlook is stable.

The specific shelf registration rated is:

 JPY 700 billion effective April 1, 2014

RATINGS RATIONALE

JFC's Aa3 rating is in line with that of the government of Japan (Aa3,

stable) and reflects its close ties with the central government. JFC

continues to receive strong support from the Japanese government, as it

plays an important public policy role in the country by providing

low-cost funding to small- and medium-sized enterprises and individuals

as well as agriculture, fisheries and forestry activities.

On 1 April 2012, JBIC was separated from JFC, following the central

government's decision to enhance JBIC's role to promote its overseas

lending business with a focus on supporting efforts to develop basic

infrastructure. Moody's believes that JBIC's separation from JFC has not

affected the latter's creditworthiness. Japan Finance Corporation, headquartered in Tokyo, is incorporated under

the Japan Finance Corporation Act, and is wholly owned by the Japanese

government. Its total assets (as of March 31, 2013) were approximately

JPY25.4 trillion.


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Source: EMBIN (Emerging Markets Business Information News)