Critical role as Japan's only public finance agency specialized in mortgage financing Integral links with the government, which wholly owns JHF and provides guarantees, subsidies, and capital injections Strong capital relative to risk-weighted assets Susceptibility to government policy, due to its status as a government-related entity (GRE) Declining revenue base as the asset balance it assumed from its predecessor decreases 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). We consider our sovereign credit ratings and outlook on Japan to influence our ratings on JHF. We may downgrade JHF if we lower
