A critical policy role as the only Japanese public finance agency specializing in mortgage financing Integral links with the government, which wholly owns JHF and provides guarantees, subsidies, and capital injections Increasing capital relative to risk, due to a buildup of retained earnings and a decline in risk-weighted assets Business stability is somewhat weaker than that of domestic commercial banks because the agency is more susceptible to government policy as a result of its position as a government-supported financial institution Low asset quality compared with domestic commercial banks The stable outlook on Japan Housing Finance Agency (JHF) mirrors that on the long-term sovereign rating on Japan (A+/Stable/A-1). Our ratings and outlook on Japan will continue to influence our ratings on
