...S&P Global Ratings equalizes its ratings on Japan Housing Finance Agency (JHF) with those on Japan, reflecting its view of an almost certain likelihood of JHF receiving extraordinary support from the government should such a need arise. We base this view on our assessment that JHF has a critical policy role and an integral link with the government. The agency plays an extremely important policy role to promote the provision of housing loans by private financial institutions through securitization of housing loan receivables. We see an almost certain likelihood of JHF receiving extraordinary support from the government when needed in addition to ongoing support, including debt guarantees, subsidies, and additional capital injections. JHF's status as Japan's only government-related entity (GRE) specializing in housing loan operations underpins its critical policy role. As part of a policy to reorganize and streamline government agencies, the government established JHF in April 2007 to take...
