Critical role as Japan's only public finance agency that specializes 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 loan risk exposure Somewhat weak business stability because of susceptibility to government policy due to its status as a government-related entity (GRE) and declining revenues along with decreasing outstanding assets 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' positive outlook on Japan Housing Finance Agency (JHF) reflects that on Japan (A+/Positive/A-1). We consider our sovereign credit ratings and outlook on Japan to have influence on our ratings on JHF.
