[December 03, 2020]

KBRA Assigns A+ Issuer Rating to Japan

Kroll Bond Rating Agency (KBRA) assigns long-term issuer ratings of A+ to Japan. KBRA also assigns K1+ short-term issuer ratings to the sovereign. The Outlook on the long-term ratings is Stable.

Click here to view the report. To access ratings and relevant documents, click here.

KBRA assigns A+ long-term ratings to Japan and the ratings have a Stable Outlook. The ratings reflect Japan's large, diversified, institutionally advanced, wealthy and globally important economy. Japan's ratings also incorporate its very high degree of fiscal flexibility to respond to the COVID-19 shock. The Yen's reserve currency status, strong access to liquidity, and ultra-low borrowing costs are also rating considerations. In addition, Japan's ratings reflect the country's outsized government debt ratios and adverse demographics. Policy measures in place since 2012 have helped counteract deflationary pressures and are steps towards improving Japan's growth and employment profile.

Related Publications: (available at www.kbra.com)

• Sovereigns Rating Methodology
• Coronavirus (COVID-19): KBRA's Sovereign Ratings Through the Looking Glass
• Coronavirus (COVID-19): Sovereigns - Broad Shoulders Needed to Soften the Blow
• Inside the G-7: Political Party Landscapes and Policy Direction
• The Graying of Japan and ESG Credit Implications

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201203006062/en/

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