NOTE:On March 20,2015, the press release was revised as follows:In the rating actions list, Japan Expressway Holding and Debt Repayment Agency , removed the reference to action taken on BACKED senior unsecured debt ratings (domestic currency) , Central Nippon Expressway Company Limited, removed the reference to action taken on Senior unsecured debt ratings (foreign currency) and under West Nippon Expressway Company Limited, removed the reference to action taken on Senior secured debt ratings (domestic currency), and under New Kansai International Airport Company Limited, removed the reference to action taken on Senior unsecured debt ratings (domestic currency), and under Japan Finance Corporation, and removed the reference to action taken on BACKED senior unsecured debt ratings (domestic).
Tokyo, December 03, 2014 -- Moody's Japan K.K. has downgraded the ratings of Japanese
government-related issuers (GRIs) to A1 from Aa3, subsequent
to the sovereign downgrade to A1 from Aa3. The rating outlooks
are stable.
(1) Japan Expressway Holding and Debt Repayment Agency
(2) East Nippon Expressway Company Limited
(3) Central Nippon Expressway Company Limited
(4) West Nippon Expressway Company Limited
(5) Metropolitan Expressway Company Limited
(6) Urban Renaissance Agency
(7) Japan Railway Construction, Transport and Technology Agency
(8) New Kansai International Airport Company Limited
(9) Japan Finance Corporation
(10) Japan Finance Organization for Municipalities
(11) Japan Housing Finance Agency
(12) Japan Bank for International Cooperation
RATINGS RATIONALE
The downgrade reflects the full linkages between the central government
and these GRIs. Moody's uses a credit substitution approach
as a GRI which is considered to operate under the Zaito system is essentially
considered to be an arm of the Government of Japan. As such,
the rating action itself does not indicate changes in individual credit
strength.
The rating outlooks for these GRIs mirror the stable outlook of the Government
of Japan.
WHAT COULD CHANGE THE RATINGS UP/DOWN
An upgrade/downgrade of the government of Japan's sovereign rating.
In addition, a decline in government ownership or an institutional
change that would result in lower financial support or weaken the very
close relationship with the central government could lead to downward
pressure.
The principal methodology used in these ratings was Government-Related
Issuers (Japanese) published in November 2014. Please see the Credit
Policy page on www.moodys.com for a copy of this methodology.
Below is a list of those entities whose ratings have been downgraded with
details of rating actions.
Japan Expressway Holding and Debt Repayment Agency
Senior secured debt ratings (domestic currency): to A1 from Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
East Nippon Expressway Company Limited
Long-term issuer rating (domestic currency): to A1 from Aa3
BACKED Senior secured debt ratings (domestic currency): to A1 from
Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Central Nippon Expressway Company Limited
Long-term issuer rating (domestic currency): to A1 from Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
BACKED senior unsecured debt ratings (foreign currency): to A1 from
Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
West Nippon Expressway Company Limited
Long-term issuer rating (domestic currency): to A1 from Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Metropolitan Expressway Company Limited
Long-term issuer rating (domestic currency): to A1 from Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Urban Renaissance Agency
Long-term issuer rating (domestic currency): to A1 from Aa3
Senior secured debt ratings (domestic currency): to A1 from Aa3
BACKED senior secured debt rating (domestic currency): to A1 from
Aa3
Japan Railway Construction, Transport and Technology Agency
Long-term issuer rating (domestic currency): to A1 from Aa3
Senior secured debt ratings (domestic currency): to A1 from Aa3
New Kansai International Airport Company Limited
Long-term issuer rating (domestic currency): to A1 from Aa3
Senior secured debt ratings (domestic currency): to A1 from Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Kansai International Airport Land Company Limited
Senior secured debt ratings (domestic currency): to A1 from Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Japan Finance Corporation
Long-term issuer rating (domestic and foreign currency):
to A1 from Aa3
Senior secured debt ratings (domestic currency): to A1 from Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
BACKED senior unsecured debt ratings (foreign currency): to A1 from
Aa3
Senior secured shelf registration rating (domestic currency): to
(P)A1 from (P)Aa3
Japan Finance Organization for Municipalities
Long-term issuer rating (domestic and foreign currency):
to A1 from Aa3
Senior secured debt ratings (domestic currency): to A1 from Aa3
Senior unsecured debt ratings (foreign currency): to A1 from Aa3
BACKED senior secured debt rating (domestic currency): to A1 from
Aa3
BACKED senior unsecured debt ratings (domestic and foreign currency):
to A1 from Aa3
Senior unsecured Medium Term Note Program rating (domestic currency):
to (P)A1 from (P)Aa3
BACKED senior unsecured shelf registration rating (foreign currency):
to (P)A1 from (P)Aa3
Japan Housing Finance Agency
Long-term issuer rating (domestic currency): to A1 from Aa3
Japan Bank for International Cooperation
Long-term issuer rating (domestic and foreign currency):
to A1 from Aa3
BACKED senior unsecured debt ratings (foreign currency): to A1 from
Aa3
BACKED senior secured debt ratings (domestic currency): to A1 from
Aa3
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's Japan K.K. is a credit rating agency registered
with the Japan Financial Services Agency and its registration number is
FSA Commissioner (Ratings) No. 2. The Financial Services
Agency has not imposed any supervisory measures on Moody's Japan K.K.
in the past year.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Mari Kumagai
Vice President - Senior Analyst
Sub-Sovereign Group
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: 813-5408-4110
SUBSCRIBERS: 813-5408-4100
David M Rubinoff
MD - Sub-Sovereigns
Sub-Sovereign Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: 813-5408-4110
SUBSCRIBERS: 813-5408-4100
Moody's downgrades 12 Japan government-related issuer ratings to A1 with stable outlook