The Japan Credit Rating Agency

The Japan Credit Rating Agency (JCR) rates corporate debt for Japanese and foreign bond issuers. The firm also releases financial and economic data and guides counterparty credit risk.

Japan Credit Rating Agency knowledge

The Japan Credit Rating Agency (JCR) rates most Japanese corporate debt, including asset-backed securities, as a significant bond rating agency. It rates debt securities, publishes financial market, economic, and industrial studies, and offers statistics. April 1985 saw JCR’s founding.

Since 1985, the JCR has experienced many financial crises, including the Japanese real estate bubble, the Asian financial crisis, the 2007–08 crisis, the European sovereign debt crisis, and the East Japan tsunami. It considers itself an authority in credit risk analysis.

JCR has expanded its global network and partnered with many organizations, including the Association of Credit Rating Agencies in Asia (ACRAA), VIS in Pakistan, CARE in India, HR Ratings in Mexico, and MARC in Malaysia.

Japan Credit Rating Agency’s Duties

Over 60% of Japan’s 1,000 publicly rated issuers receive rating guidance from JCR. In addition to grading over 70% of Japan’s financial industry, JCR dominates the medical and educational sectors.

JCR met globalization and bond issuers’ and investors’ desire for multinational rating firms. Over 200 international issuers have received credit ratings from it in important markets like the U.S., Europe, Turkey, Hong Kong, Indonesia, and Thailand. In 2007, the JCR became a nationally recognized statistical rating organization in the U.S., and European Union certification followed in 2011.

JCR also offers networking, private credit assessment, credit risk estimation modeling, green and social financial evaluation, seminars and training, economics and industry information, and research and knowledge exchange.

The firm also explains its grading methods and policies on its website. Its rating categories include corporations, financial institutions, the public sector, structured finance, and sovereigns and supranationals.

Rating Scales of Japan Credit Rating Agency

JCR rates debt issuances using long-term and short-term scales. Western credit rating agencies like S&P and Moody’s utilize a long-term rating scale comparable to ours.

AAA is the most excellent quality, and D is the default on the long-term grading scale. Between A.A. and B, a plus or minus might reflect issuers within that grade.

JCR’s short-term rating system is J-1 to J-3, then N.J. and D. D. indicate default, whereas J-1 is the best quality.

Conclusion

• JCR, Japan’s principal credit rating agency, rates corporate and financial bond issuers.
• Over 200 overseas issuers receive rating guidance from JCR.
• JCR routinely releases economic and financial studies and provides rating recommendations.
• Over 60% of Japan’s 1,000 publicly rated corporate issuers and 70% of its financial industry receive rating guidance from JCR.
• JCR became a U.S. Nationally Recognized Statistical Rating Organization in 2007 and an EU-certified rating organization in 2011.
• JCR utilizes two rating scales—long-term and short-term—that work similarly to S&P’s and Moody’s.
• JCR has been partnering with international credit rating agencies and earning approval in several countries to develop its worldwide network.