...We equalize our ratings on JHF with those on Japan, reflecting our view of an almost certain likelihood of the agency receiving extraordinary support from the government should the need arise. We base this view on our expectation that JHF's critical policy role to and integral link with the government will remain unchanged in the next two years. The agency plays the extremely important policy role of promoting smooth and efficient provision of funds for building houses to Japanese citizens by supporting private financial institutions, mainly through the securitization of housing loans. 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 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,...
