The bond issuances are:
JFM's rating reflects its strong links to the central government, which leads Moody's to conclude that creditworthiness of JFM should reflect that of the government, as expressed in the Aa3 rated assigned to JGB rating.
The alignment of JFM's ratings with that of the sovereign reflects the close integration of JFM's activities with the government, and specifically, its role as a provider of low-cost funding to Japanese regional and local governments (RLGs), on behalf of the government. The significant degree of government involvement in the development of JFM's business plans, budget, and the formulation and implementation of their major policies, further evidences the strong ties between the two entities. In addition, the government determines how much funding will be allocated by the JFM to the RLGs annually.
As a result, Moody's has adopted a credit substitution approach for JFM, as well as for 11 other Zaitos, or government-related issuers in
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