bonds issued by
The bond issuances are:
The rating Aa3 reflects URA's strong links with the government of
The creditworthiness of URA reflects that of the sovereign, given its
importance to the government's urban development and housing policy, as
well as the high level of credit support from, and the heavy involvement
of, the government in its operations.
URA was established in 2004 as an independent administrative
corporation(IAC) under the general law for IAC and the URA law.
The law establishing URA stipulates that the Japanese government must
provide financial support to the entity through capital injections. The
government also provides explicit guarantees for URA's debt, as well as
direct loans to the entity.
The law also states that the entity's capital must be held by the central
and local governments. Currently, URA is 99.8%-owned by the central
government, with the remaining shares held by the local governments.
Strong oversight provisions are detailed in the IAC law which states that
business objectives and approve its medium-term plan. The plan is
required to include detailed budgets, funding plans and requirements for
cash-flow borrowings. Any change to the plan requires the approval of
MLIT. A committee established by MLIT also evaluates the extent to which
the objectives set out in the plan have been achieved.
As a result of this close oversight of the entity's activities, the
government would be aware well in advance of any developing fiscal
problems and therefore be able to intervene if required.
The principal methodology used in this rating was Government-Related
Issuers: Methodology Update published in
Credit Policy page on www.moodys.com for a copy of this methodology.
(IAC) established in
reform public corporations. Its headquarter is in Kanagawa prefecture.
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