Tokyo Metropolitan Government

This report does not constitute a rating action. TMG has a strong tax revenue base with a highly diversified economy and has disciplined fiscal management. TMG maintains a strong revenue base as the economic center of Japan. TMG's strong record of revenue and expenditure management demonstrates its fiscal discipline. Ratings on the sovereign constrain those on Japan's LRGs. Prospects of a recovery in TMG's fiscal balance from fiscal 2022 will help mitigate a temporary rise in its debt burden. TMG's revenue from corporate-related tax will bottom in fiscal 2021 in line with a moderate economic recovery. While debt will increase, the prospect of a recovery in tax revenue will mitigate TMG's debt burden. TMG continues to have exceptional liquidity despite

...Credit context and assumptions Base-case expectations TMG has a strong tax revenue base with a highly diversified economy and has disciplined fiscal management. + TMG maintains a strong revenue base as the economic center of Japan. + TMG's strong record of revenue and expenditure management demonstrates its fiscal discipline. + Ratings on the sovereign constrain those on Japan's LRGs. Prospects of a recovery in TMG's fiscal balance from fiscal 2022 will help mitigate a temporary rise in its debt burden. + TMG's revenue from corporate-related tax will bottom in fiscal 2021 in line with a moderate economic recovery. + While debt will increase, the prospect of a recovery in tax revenue will mitigate TMG's debt burden. + TMG continues to have exceptional liquidity despite having partly drawn down its reserves....

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