23-D-0474
August 22, 2023

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

Anicom Holdings, Inc. (security code: 8715)<Affirmation>
Long-term Issuer Rating:
Outlook:Bonds:

A
StableA

Anicom Insurance, Inc. (security code: -)<Affirmation>
Long-term Issuer Rating:
Outlook:A
StableRationale(1) The Anicom Group (the “Group”) has, under the umbrella of insurance holding company Anicom
Holdings, Inc., Anicom Insurance, Inc. at the core and multiple other group companies for veterinary
clinic support operations, animal treatment clinical and research operations, pet-related Internet
services, etc. Anicom Insurance is Japan’s first non-life insurance company specializing in pet
insurance and leads the industry with the market share of nearly 50% (an estimate based on
insurance premiums for the fiscal year ended March 2022 (FY2021)). JCR deems the Group’s
creditworthiness to be equivalent to an A rating in light of such factors as the Group’s solid businessbase backed by the differentiated business model, competitive marketability and so forth; relatively
high and stable earnings capacity; and capital adequacy relative to risks. JCR considers that securing
competitive edge and improving earnings capacity of the insurance business, as well as expanding
profits also in businesses that create synergies, will positively affect the Group’s creditworthiness.
(2) Growth potential remains high for Japan’s pet insurance market partly because of an increased
awareness of pet insurance and growing perception of pets as family members, and the market has
been seeing a number of new comers over the past few years. The Group secures competitive edge
by offering excellent marketability and services while avoiding excessive price competition, and its
business base is stronger than JCR’s initial assumption. JCR considers that Anicom Insurance’s
largest strength lies in the business model that adopts the over-the-counter settlement system as in
the health insurance system for humans. The development of this highly convenient system inpartnership with animal hospitals across the nation has made the Group’s business foundation strong.
The Group has since its foundation been aspiring to become a prevention-oriented insurancecompany. In order to improve pets’ health through pet insurance, it has been focusing on preventing
and detecting illness in the early stage by promoting eradication of genetic diseases through genetic
tests, supporting healthy life by providing gut microbiota measurement and medical checkups,
offering appropriate foods according to risks faced by individual pets and so forth. Currently, it claims
to provide pet insurance to make the insured pets healthier and is pressing ahead with the initiatives
that far outpace the competitors. It also engages in the breeding support business and intends toincrease its own corporate value by pursuing synergies with the insurance and non-insurance
businesses.
(3) The number of in-force policies has been expanding steadily, and contract renewal rate is high andstable at approximately 90%. As regards consolidated financial results for FY2022, recurring revenue
and recurring profit came to 56.5 billion yen and 3.6 billion yen, respectively, which can be considered
generally steady despite changes in the management environment. That said, earned-incurred (E/I)
loss ratio of Anicom Insurance alone over the past few years has been somewhat higher than before
because of an increase in the frequency of hospital visits due in part to the COVID crisis, rise in unit
medical treatment fees with the acceleration of inflation, etc. JCR will keep an eye on the improvementof the loss ratio through the efforts to support pets’ health and so forth, as well as the expansion ofrevenues from the insurance business with the diversification of sales channels, outcome of theinitiatives to improve profitability partly through the reduction of agency commissions. The COVID
crisis has had both positive and negative impacts on the pet insurance business; however, JCR

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Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.

assumes that these impacts will cease in FY2023 and beyond and will thus watch how far E/I loss
ratio will decline.
(4) JCR views capital adequacy of the entire Group relative to risks to be commensurate with the A rating
category. Solvency margin ratio under the current regulations remains low compared to the industry
average; for one thing, because pet insurance is not categorized independently for regulatory reasons,relatively high risk coefficients are applied, making the calculation of general insurance risk larger
than the actual level. As regards economic-value-based solvency restrictions to be introduced in
FY2025, risk coefficients for pet insurance will be newly established, which means that coefficientsthat better represent the actual situation are expected to be applied. The change in risk coefficients
does not necessarily cause fluctuations in substantive risk exposure and does not directly affect theGroup’s creditworthiness, but JCR will nevertheless keep an eye on the status of deliberations toward
the finalization of the new regulations. In terms of asset management, the Group is affected by market
fluctuations; however, its stance to give priority to ensuring safety and liquidity remain unchanged,
and risks are thus limited.
(5) As the Group focuses on pet insurance-related businesses, its risk profile is far different from that ofa general non-life insurance company. Given that pet insurance is an aggregate of small policies andrisks are basically dispersed, the law of large numbers works, thus constraining income/loss volatility.
That said, there is a possibility that an increase in the frequency of payment events due in part to the
spread of infectious diseases, price competition, amendment to the Act on Welfare and Managementof Animals, etc. will push down profits. Ensuring risk-return balance is essential, and thus monitoring
payment history and appropriately addressing the deviation from the scheduled payment rate, etc.
will probably be needed.
Issuer: Anicom Holdings, Inc.
Anicom Holdings is the insurance holding company of the Group. Its issuer rating is at the same level as
the Group’s creditworthiness. Cash flows are stable, underpinned by the steady earnings capacity of thecore company. Moreover, given the Group’s policies on business investment and financing, JCR assumes
it unlikely that double leverage ratio will go above 100% by certain percentage points in the medium run
and thus does not reflect the structurally subordinated nature of creditors of a holding company to thoseof the subsidiaries in the rating for Anicom Holdings. Considering that the Group has relatively strong
appetite for strategic investment in pet-related businesses, JCR will keep an eye on the Group’s stanceon business investment and capital policy, as well as other factors like balance between liabilities andcapital of the holding company alone.
Issuer: Anicom Insurance, Inc.
Anicom Insurance is the core company of the Group, and its voting rights are held entirely by Anicom
Holdings. Anicom Insurance is Japan’s first non-life insurance company specializing in pet insurance andleads the industry with the largest market share. It has stable earnings capacity, backed by a solid
business base, and its financial position is relatively sound. Given, among others, that Anicom Insurance
is the Group’s core company, its issuer rating is at the same level as the Group’s creditworthiness.
Tomohiro Miyao, Seito Achiha
RatingIssuer: Anicom Holdings, Inc.
<Affirmation>
Long-term Issuer Rating: A
Outlook: Stable
Issue
Amount (bn)Issue Date
Bonds no. 1
JPY 5
Sept. 11, 2020

Issuer: Anicom Insurance, Inc.
<Affirmation>
Long-term Issuer Rating: A

Due Date
Sept. 11, 2025

Coupon0.300%

RatingA

Outlook: Stable

Rating Assignment Date: August 18, 2023
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 "JCR's Rating Methodology" (November 7, 2014), "Non-Life Insurance" (July 1,2013) and "Rating Methodology for Financial Groups' Holding Companies and Group Companies" (September 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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Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026
Information herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well as other factors,
JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, completeness or merchantability, or fitness for any particular purpose, with respect to any suchinformation, and is not responsible for any errors or omissions, or for results obtained from the use of such information. Under no circumstances will JCR be liable for any special, indirect, incidental orconsequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract, tort, strict liability or otherwise, and whether
such damages are foreseeable or unforeseeable. JCR's ratings and credit assessments are statements of JCR's current and comprehensive opinion regarding redemption possibility, etc. of financial obligations
assumed by the issuers or financial products, and not statements of opinion regarding any risk other than credit risk, such as market liquidity risk or price fluctuation risk. JCR's ratings and credit assessments
are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions to purchase, sell or hold any securities such as individual bonds or commercial paper.
The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in or unavailability of information as well as other factors. JCR receives a rating fee paid by issuers for
conducting rating services in principle. JCR retains all rights pertaining to this document, including JCR's rating data. Any reproduction, adaptation, alteration, etc. of this document, including such rating
data, is prohibited, whether or not wholly or partly, without prior consent of JCR.
JCR is registered as a "Nationally Recognized Statistical Rating Organization" with the U.S. Securities and Exchange Commission with respect to the following four classes. (1) Financial institutions, brokers
and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.
JCR publishes its press releases regarding the rating actions both in Japanese and in English on the same day. In case that it takes time to translate rating rationale, JCR may publicize the summary version,
which will be replaced by the full translated version within three business days. (Regarding Structured Finance products, JCR only publicize the summary version in English.)

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Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.

I n f o r m at i o n D i s c l o s u r e F o r mJapan Credit Rating Agency, Ltd.

Disclosure Required by Paragraph (a)(1)(ii) of Rule 17g-7

1

Issuer:Anicom Holdings, Inc.
Anicom Insurance, Inc.

Rating Publication
Date:

August 22, 2023

The Symbol, Number, or Score in the Rating Scale used to Denote Credit Rating Categories andNotches and, the Identity of the Obligor or the Identity and a Description of the Security or Money
Market Instrument as Required by Paragraph (a)(1)(ii)(A) of Rule 17g-7
 Please see the news release. If the credit rating is a private rating, please see the report for private
rating.

2

The version of the procedure or methodology used to determine the credit rating; as Required by
Paragraph (a)(1)(ii)(B) of Rule 17g-7
 Please see the news release. If the credit rating is a private rating, please see the report for private
rating.

3

The Main Assumptions and Principles used in Constructing the Procedures and Methodologies
used to Determine the Credit Rating as Required by Paragraph (a)(1)(ii)(C) of Rule 17g-7
 The credit rating methodology assumes, in principle, to be applied to assess the likelihood of agiven debt payment in light of its issuer’s condition and business environment, etc. in the relevant
future. There is certain limitation, however, in the time horizon that the rating foresees.
 The credit rating methodology assumes, in principle, that the factors posted in the below areparticularly important for such likelihood to be determined, and that the rating determination ismade by evaluating each of them not only quantitatively but also employing qualitative analyses.

A) Business Bases
The likelihood of a given debt payment is highly conditional to its issuer’s business bases - how they
can be maintained/ expanded into the future and thereby secure earnings and cash flows in adequacy
and in a sustainable way.
B) Financial Grounds and Asset Quality
The likelihood of debt payment is highly dependent on the degree of the issuer’s indebtedness and loss
absorption capacity in terms of equity capital. Also notable is that a financial institution might see asignificant loss of financial grounds as a result of changes in value of the assets under its possession.
C) Liquidity Positions
The likelihood of debt payment is highly dependent on the adequacy of the issuer’s cash and othersources of repayment (liquidity positions).

1/5D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The likelihood of debt payment is affected one way or the other by the issuer’s related parties such as
parent company, subsidiary, guarantor, and the government of the issuer’s business domicile, etc. - bytheir own conditions and/ or position of support/ assistance for the issuer.
E) Order of Seniority in Debt Payment
The likelihood of debt payment can be different between given debts of the same issuer. The
likelihood of debt payment for an individual debt is dependent on the issuer’s discretion, and/ or its
rank relative to other debts of the same issuer in the order of seniority in principal/ interest payment
which is determined by design as financial product or by laws, etc.

4

The Potential Limitations of the Credit Rating as Required by Paragraph (a)(1)(ii)(D) of Rule 17g-7
 The credit rating herewith presented by JCR is its summary opinion with regard to the likelihood ofgiven debt payment and hence not necessarily a perfect representation of such likelihood. The credit
rating is not intended to estimate the probability of default or the loss on given default, either.
 The objective of the credit rating herewith presented does not include any concerns other than thelikelihood of debt payment, such as risks of price changes, market liquidity, etc.
 The credit rating herewith presented is necessary to be reviewed along with possible changes of theissuer of rated objects in its business performance and/ or circumstances which include regulatoryenvironment, and hence subject to possible alteration.

5

Information on the Uncertainty of the Credit Rating as Required by Paragraph (a)(1)(ii)(E) of Rule
17g-7
 The information used for the determination of credit rating as herewith presented is obtained by
JCR from the issuer of rated objects and other sources that JCR trusts in terms of accuracy andreliability but possibly contains errors due to human, non-human or other causes. Consequently, thecredit rating determined on the grounds of such information does not constitute, explicitly or
implicitly, any representation or warrant of JCR on the information itself or any consequences of its
use in terms of accuracy, relevance, timeliness, wholeness, market value, or usefulness for any
specific purposes.

6

Use of Due Diligence Services of a Third Party in Taking the Rating Action as Required by Paragraph(a)(1)(ii)(F) of Rule 17g-7
 There is no use of any third-party due diligence service in the determination of the credit ratingherewith presented.

7

Use of Servicer or Remittance Reports to Conduct Surveillance of the Credit Rating Required by
Paragraph (a)(1)(ii)(G) of Rule 17g-7
 There is no use of any servicer or remittance report to conduct surveillance of the credit ratingherewith presented.

8

The Types of Data Relied Upon for the Purpose of Determining the Credit Rating as Required by
Paragraph (a)(1)(ii)(H) of Rule17g-7

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 The information posted in the below, which includes data, is used for the determination of the credit
rating herewith presented.
A) Audited financial statements presented by the rating stakeholders
B) Explanations of business performance, management plans, etc. presented by the rating stakeholders

9Overall assessment of the Quality of Information Available and Considered in Determining theCredit Rating as Required by Paragraph (a)(1)(ii)(l) of Rule 17g-7
 JCR holds its basic policies for securing the quality of information as a base of due diligence for thedetermination of credit ratings. The information used as a base for the determination of credit ratingherewith presented satisfies such policies, which include the audit by an independent auditor, thewarranty made by the issuer, the publication by the issuer, some independent media or, otherwise,
JCR analyst’s scrutiny, etc.
 JCR sees no particular weakness in the quality of information used for the determination of thecredit rating herewith presented as compared to the information used in other cases of the credit
rating for comparable issuers or ratable objects.
 If the credit rating is an Indication, please see the report for Indication.

10 Information Relating to Conflicts of Interest as Required by Paragraph (a)(1)(ii)(J) of Rule 17g-7
 JCR receives payment of compensation for the determination of the credit rating herewith presented
from either one of those parties who are issuer, underwriter, depositor or sponsor.
 JCR did not receive in the last fiscal year in the past payment of compensation from the same party
for any kind of JCR’s service other than the determination of public or private credit rating, such as
one in the ancillary business.

or Measure of the Potential Volatility of the Credit Rating as Required by Paragraph
11 Explanation(a)(1)(ii)(K) of Rule 17g-7
A) Business Bases
The credit rating is subject to alteration if there is improvement or deterioration of the issuer’s
business bases, since its revenue, etc. may improve or deteriorate by the change in its business
management policies, clients’ preferences, competitive situation, or a technological innovation. The
resultant alteration of the credit rating is usually by a notch, with possibility of a few notches if andwhen the change in the business bases is large.
B) Financial Grounds and Asset Quality
The credit rating is subject to alteration if the issuer increases/ decreases its debt/ capital or vice versa
and thereby makes its individual debt payment liability less or more bearable and its loss absorption
capacity into the future decreased or increased. Also, the changes in the quality of asset under theissuer’s holding may affect the credit rating, since such changes could raise or lower the likelihood of
future loss of the issuer’s financial grounds. The resultant alteration of the credit rating is usually by anotch, with possibility of a few notches if and when the change in the financial grounds and/ or asset
quality is large.
C) Liquidity Positions
The credit rating is subject to alteration if there is a change in the issuer’s financial management
policy or in the relations with fund procurement sources and the change thereby makes its liquidity
positions improve or deteriorate. The resultant alteration of the credit rating is usually by a notch, withpossibility of a few notches if and when the change is large.

3/5D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The credit rating is subject to alteration if there is a change in the issuer’s parent company or
subsidiary, guarantor or other provider of credit enhancement, or the government of the issuer’s
business domicile, or other related parties’ own conditions and/ or position of support/ assistance forthe issuer, and the change thereby makes its business bases, financial grounds and/ or liquidity
positions improve or deteriorate, and/ or making the effectiveness of guarantee and other credit
enhancement improve or deteriorate. The resultant alteration of the credit rating is usually a notch,with possibility of a few notches if and when the change is large.
E) Order of Seniority in Debt Payment and Non-Payment Forgiven by Contract
The credit rating is subject to alteration if there is a change in the rated debt’s status in the order ofseniority relative to other debts caused by the improvement/ deterioration of the issuer’s financial
condition. The resultant alteration of the credit rating is usually a notch, with possibility of a few
notches if and when the change is large. Also, in case of the financial products for which non-payment
of interest/ principal is contractually permissible, the credit rating is subject to alteration if and when
the likelihood of such non-payment is projected to increase or decrease. The resultant alteration of thecredit rating could be by a notch but often as much as a few notches.
F) Rise and Fall in General Economy and Markets
The credit rating is subject to alteration if there is a rise/ fall in the general economy and/ or themarkets inducing the issuer’s revenues/ expenses to increase/ decrease and vice versa, etc. The
resultant alteration of the credit rating is usually by a notch, with possibility of a few notches if andwhen the change is exceptionally large.
G) Various Events
The credit rating is subject to alteration on occurrence of various events, such as change in the issuer’s
major shareholders, M&A and other organizational change, accident, violation of the law, litigation,legal/ regulatory change, natural disaster, etc., which are unforeseeable at the time when the credit
rating is determined, causing a significant change on the issuer’s business bases, financial grounds, etc.
The resultant alteration of the credit rating could be by a notch but more often than not as much as afew notches.

12

Information on the Content of the Credit Rating, Including the Historical Performance of the Credit
Rating and the Expected Probability of Default and the Expected Loss in the Event of Default as
Required by Paragraph (a)(1)(ii)(L) of Rule 17g-7
 Historical records of the credit rating herewith presented are posted in the end of this paper.
 The credit rating herewith presented by JCR is its summary opinion with regard to the likelihood ofgiven debt payment and hence not necessarily a perfect representation of such likelihood. The credit
rating is not intended to estimate the probability of default or the loss on given default, either.
 Facts of the probability of default are posted as Form NRSRO Exhibit 1 on the JCR website under
the URL:
https://www.jcr.co.jp/en/service/company/regu/nrsro/on the Sensitivity of the Credit Rating to Assumptions Made as Required by Paragraph
13 Information(a)(1)(ii)(M) of Rule 17g-7
A) Business Bases
The credit rating herewith presented could be changed if and when the assumptions made at the timeof its determination turn out to be inaccurate with regard to the issuer’s business bases and powers ofearning or cash flow generation, etc. The resultant change of the credit rating is most likely by a notch,
as JCR speculates, but possibly as much as a few notches if the development is rapid in improvement
or deterioration of the issuer’s business bases on some drastic change in the operational environments,
etc.
B) Financial Grounds and Asset Quality
The credit rating herewith presented could be changed if and when the assumptions made at the timeof its determination turn out to be inaccurate with regard to the issuer’s financial grounds and asset
4/5

quality. The resultant change of the credit rating is most likely by a notch, as JCR speculates, but
possibly as much as a few notches if the development is rapid in improvement or deterioration of theissuer’s financial grounds and/ or asset quality on some drastic change in its business bases.

C) Liquidity Risks
The credit rating herewith presented could be changed if and when the assumptions made at the timeof its determination turn out to be inaccurate with regard to the issuer’s liquidity positions. The
resultant change of the credit rating is most likely by a notch, as JCR speculates, but possibly as muchas a few notches if the development is rapid in improvement or deterioration of the issuer’s liquidity
positions on some drastic change in its financial management policy or relations with fundprocurement sources, etc.
D) Related Parties’ Status and Stance of Support/ Assistance for the Issuer
The credit rating herewith presented could be changed if and when the assumptions made at the timeof its determination turn out to be inaccurate with regard to the issuer’s parent company or subsidiaries,
guarantor or other providers of credit enhancement, the government of the issuer’s business domicile
or other related parties’ status and stance of support/ assistance for the issuer. The resultant change ofthe credit rating is most likely by a notch, as JCR speculates, but possibly as much as a few notches if
there is a major change on the part of related parties, such as replacement, disappearance, some drastic
improvement/ deterioration of financial grounds/ balances, etc.
E) Rise and Fall in General Economy and Markets
The credit rating herewith presented could be changed if and when the assumptions made at the timeof its determination turn out to be inaccurate with regard to the prospects of general economy andmarkets. JCR expects the change should be most likely by a notch but could be as much as a few
notches, should the economy or the markets change so greatly.

on the Representations, Warranties, and Enforcement Mechanisms of an Asset14 Information
backed Security as Required by Paragraph (a)(1)(ii)(N) of rule 17g-7
 The credit rating herewith presented is not for an ABS product, and hence no relevant issue.

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

mation herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well asfactors, JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, co mpleteness or merchantability, or fitness for any particular purpose,
espect to any such information, and is not responsible for any errors or omissions, or for results obtained from the us e of such information. Under no circumstances will JCR be liable forpecial, indirect, incidental or consequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract,
trict liability or otherwise, and whether such damages are foreseeable or unforeseeable. JCR’s ratings and credit assessments are statements of JCR’s current and comprehensive opinion
ding redemption possibility, etc. of financial obligations assumed by the issuers or financial products, and not statements of opinion regarding any risk other than credit risk, such as market
ity risk or price fluctuation risk. JCR’s ratings and credit assessments are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions
rchase, sell or hold any securities such as individual bonds or commercial paper. The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in orailability of information as well as other factors. JCR retains all rights pertaining to this document, including JCR’s rating data. Any reproduction, adaptation, alteration, etc. of this document,
ding such rating data, is prohibited, whether or not wholly or partly, without prior consent of JCR.

is registered as a "Nationally Recognized Statistical Rating Organization" with the U.S. Securities and Exchange Commission with respect to the following fo ur classes. (1) Financial
utions, brokers and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.

5/5

The Historical Performance of the Credit Rating
Issuer Name

Anicom Holdings, Inc.
Anicom Holdings, Inc.
Anicom Holdings, Inc.
Anicom Holdings, Inc.
Anicom Holdings, Inc.
Anicom Holdings, Inc.

Issue Name

Issuer(Long-term)
Issuer(Long-term)
Issuer(Long-term)
Bonds no.1
Bonds no.1
Bonds no.1

1/1

Publication Date

RatingOutlook/Direction

July 16, 2020
July 29, 2021
July 29, 2022
September 4, 2020
July 29, 2021
July 29, 2022

A
A
A
A
A
A

StableStableStable

The Historical Performance of the Credit Rating
Issuer Name

Anicom Insurance, Inc.
Anicom Insurance, Inc.
Anicom Insurance, Inc.

Issue Name

Publication Date

Issuer(Long-term)
Issuer(Long-term)
Issuer(Long-term)

July 16, 2020
July 29, 2021
July 29, 2022

1/1

RatingOutlook/Direction

A
A
A

StableStableStableAttachment

Attestation Required by Paragraph (a)(1)(iii) of Rule 17g-7

I, Tomohiro Miyao, have responsibility to this Rating Action and to the best of my knowledge:

A) No part of the credit rating was influenced by any other business activities.
B) The credit rating was based solely upon the merits of the obligor, security, or money market
instrument being rated.
C) The credit rating was an independent evaluation of the credit risk of the obligor, security, or
money market instrument.

Tomohiro Miyao
General Manager of Financial Institution Rating Department

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

mation herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well asfactors, JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, co mpleteness or merchantability, or fitness for any particular purpose,
espect to any such information, and is not responsible for any errors or omissions, or for results obtained from the us e of such information. Under no circumstances will JCR be liable for
ecial, indirect, incidental or consequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract,
rict liability or otherwise, and whether such damages are foreseeable or unforeseeable. JCR’s ratings and credit assessments are statements of JCR’s current and comprehensive opinion
ing redemption possibility, etc. of financial obligations assumed by the issuers or financial products, and not statements of opinion regarding any risk other than credit risk, such as market
ty risk or price fluctuation risk. JCR’s ratings and credit assessments are statements of opinion, and not statements of fact as to credit risk decisions or recommendations regarding decisions
chase, sell or hold any securities such as individual bonds or commercial paper. The ratings and credit assessments may be changed, suspended or withdrawn as a result of changes in or
ilability of information as well as other factors. JCR retains all rights pertaining to this document, including JCR’s rating data. Any reproduction, adaptation, alteration, etc. of this document,
ing such rating data, is prohibited, whether or not wholly or partly, without prior consent of JCR.

s registered as a "Nationally Recognized Statistical Rating Organization" with the U.S. Securities and Exchange Commission with respect to the following fo ur classes. (1) Financial
tions, brokers and dealers, (2) Insurance Companies, (3) Corporate Issuers, (4) Issuers of government securities, municipal securities and foreign government securities.