Critical role in housing policy as the only public finance agency specializing in mortgage financing Integral links with the government, which wholly owns JHF and provides guarantees, subsidies, and capital injections Strong capital relative to residential mortgage loans risk exposure Somewhat weak business stability because of declining revenues and susceptibility to government policy More relaxed lending standards than those of domestic commercial banks due to its public policy role, although asset quality is improving S&P Global Ratings' stable outlook on Japan Housing Finance Agency (JHF) reflects that on Japan (A+/Stable/A-1). Our ratings and outlook on Japan will continue to influence our ratings on JHF. We may downgrade our ratings on JHF if: (1) we lower our sovereign rating on Japan,
