Global Credit Research
Announcement
1 JUN 2009

Announcement: Japan Finance Organization for Municipal Ent.

Moody's comments on Japan Finance Organization for Municipalities
Tokyo, June 01, 2009 -- Effective today, the Japan Finance Organization for Municipal Enterprises has been
converted to "Japan Finance Organization for Municipalities" (JFM). Moody's rating on this new JFM is Aaa,
consistent with the rating on the previous entity.
On May 18, 2009, the Aaa ratings of all of Japan's zaito-related agencies were placed under review forpossible downgrade, reflecting Moody's reassessment of the level of Japan's public sector support anchor(currently the Aaa local currency deposit ceiling) , in accordance with the rating agency's unification of thecentral government ratings at Aa2. As such, the Aaa rating on the new JFM is under review for possible
downgrade. This review was not triggered by a change in the new JFM's standalone credit profile, which
includes its financial position and performance, debt and liquidity profile, and its governance andmanagement factors.
As announced on May 18, 2009, it is unlikely that the review would result in ratings for zaito-related entities,including the JFM, that were below the central government rating of Aa2 given the strong linkages between
the government and these agencies.
The new JFM has expanded its scope of operations to include loans to the general accounts, in addition to
public enterprise accounts, of Japanese regional and local governments. The new JFM is the only
specialized public institution providing low-cost, long term funds to local governments in Japan. Moody's
believes the new JFM will continue to play an important role in local government finance.
TokyoYuka TambaVice President - Senior Analyst
International Public Finance
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
LondonYves Lemay
Managing Director
International Public Finance
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

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