...We equalize our ratings on Japan Housing Finance Agency (JHF) with those on Japan (A+/Stable/A-1), reflecting our view of an almost certain likelihood of JHF receiving extraordinary support from the government should the 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 the extremely important policy role of securitizing housing loans to promote the provision of housing loans by private financial institutions. We additionally see JHF receiving ongoing support, including debt guarantees, subsidies, and additional capital injections from the government. 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 over the assets of former entities, Government Housing Loan Corp. (GHLC) and Housing Loan...
