23-D-1820
March 25, 2024

Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating.

Kyushu University (security code: -)<Affirmation>
Long-term Issuer Rating:
Outlook:AAA
StableRationale(1) Kyushu University (the “University”) is one of Japan’s leading universities. It has a strong ability torecruit students both domestically and internationally, and its faculty’s research ability ranks among
the top in Japan. The University has 12 undergraduate schools and 18 graduate schools withapproximately 18,600 students and approximately 7,900 faculty and staff members in total. InNovember 2021, the University was selected as a Designated National University Corporation, andat the same time, it published Kyushu University VISION 2030, which indicates the University’s futuredirection. In order to realize “a university that drives social change with integrative knowledge,” theUniversity is working on the integrated promotion from research strategy to social implementation
with two driving forces, the Future Society Design Headquarters and the Data-Driven Innovation
Promotion Headquarters, both established in April 2022.
(2) Continuity and stability of the national university corporations system remain unchanged. Additionally,
the University is steadily seizing opportunities to obtain funding from the government and the private
sector, and its financial base is strong among national university corporations. Based on its own
management structure, the University is promoting initiatives under the vision, and the cycle ofimproving its educational/research standards will likely continue while making efforts to expand
financial resources for operation. As large investments have come to an end, a reduction in interestbearing debts can be expected. JCR evaluates the rating on a national university corporation in acomprehensive manner reflecting the effect of credit enhancement by the national government andothers, in addition to individual conditions. Taking the above into consideration, JCR has affirmed therating on the University with Stable outlook.
(3) The University’s ability to obtain external funding is high in Japan, with stable track records. On theother hand, there is room to further increase the external funding ratio compared to other DesignatedNational University Corporations. The University is expected to vitalize education/research, andexpand the ability to obtain funding mainly in the three characteristic areas of “Decarbonization,”“Medicine and Health” and “Environment and Food.” Furthermore, the government plans to carry out
governance/regulatory reforms for national university corporations, and JCR will confirm theUniversity’s response and its impact on the University, in conjunction with the University forInternational Research Excellence Program.
(4) The integration and relocation to Ito Campus was completed in the academic year 2018. However,as a result of this, the University has incurred a large amount of interest-bearing debts, and it plans
to use proceeds from the sale of Hakozaki Campus to repay the debts. The public solicitation of aland user, which had been postponed due to the impact of the COVID-19 pandemic, began in April
2023. After a series of procedures, the land is scheduled to be delivered in stages in academic year
2025 and onward, and JCR will keep an eye on the progress.
(5) The university hospitals (the “Hospitals”) maintain stable management situation on the back of thehigh positions in the medical districts and capabilities to respond to the medical policies. The businessenvironment continues to be difficult, affected by the COVID-19 and rising prices. However, partly
thanks to the support of subsidies, the Hospitals have ensured business profits. Going forward, there
is little concern that the Hospitals’ management situation will worsen, as improvement in clinicalindicators and necessary financial support are expected. Debts equivalent to the amount of hospital
redevelopment project have been steadily repaid.
Shigenobu Tonomura, Masaki Abe

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Rating
Issuer: Kyushu University<Affirmation>
Long-term Issuer Rating: AAA

Outlook: Stable

Rating Assignment Date: March 19, 2024
The assumptions for the credit ratings and the definitions of the rating symbols are published as “Types of Credit Ratings and Definitionsof Rating Symbols” (January 6, 2014) in Information about JCR Ratings on JCR’s website (https://www.jcr.co.jp/en/).
Outline of the rating methodology is shown as “FILP Agencies, etc.” (May 29, 2020) and “National University Corporations” (August 1,2022) in Information about JCR Ratings on JCR’s website (https://www.jcr.co.jp/en/).
The rating stakeholder participated in the rating process of the aforementioned credit ratings.

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