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 Somewhat weaker business stability than that of domestic commercial banks because the agency's business is susceptible to government policy, and its revenues are falling in line with a decline in its outstanding assets Improving but more relaxed lending standards than those of 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
