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S&P: Ratings On Japan's JFM To Remain At 'AA/A-1+' Following Name ChangeTokyo, May 29, 2009 -- As of June 1, 2009, Japan Finance Organization for Municipal Enterprises will change
its name to Japan Finance Organization for Municipalities (referred to hereinafter as JFM). Standard & Poor'sRatings Services confirmed today that its 'AA' long-term and 'A-1+' short-term ratings on the entity, the legal
identity of which will remain the same, would remain the same after the name change. Standard & Poor's said
the outlook would also remain stable.
The ratings on JFM reflect the organization's robust public policy role as the primary public financial institution
supplying long-term, low-cost financing for local and regional governments (LRGs) in Japan. This is the second
name change relating to the entity in the space of a year; on Oct. 1, 2008, Japan Finance Organization forMunicipal Enterprises officially took over the assets and liabilities of Japan Finance Corp. for MunicipalEnterprises. For details, see “Research Update: Japan Finance Organization for Municipal Enterprises Rated'AA/A-1+', Replacing Old JFM”, published on Sept. 26, 2008.
The newest incarnation of JFM is going to expand its role. In addition to providing traditional long-term
financing for fee-based services, such as water and sewage, operated by LRGs in Japan (collectively called"municipal enterprises"), JFM will extend loans for non-fee administrative services in the LRG general account.
Standard & Poor's assumes that the volume of loan expansion would not endanger the current business andfinancial profiles of JFM. Also, even though JFM is now effectively owned by the LRGs, having previously
been owned 100% by the central government, Standard & Poor's expects JFM, in light of its policy role, toreceive similar levels of support from the LRGs as was received from the central government. Moreover, JFM is
still entitled to receive unconditional and irrecoverable guarantees from the central government in respect of its
financing of fee-based services. Despite the change in ownership, we also consider the likelihood ofextraordinary government support for JFM to be extremely high, given its close links to the central government,
plus its critical role in the centralized financing system for LRGs in Japan. For the rationale of our ratings on
JFM, see “Ratings On Japan's JFM Affirmed Despite Lending Expansion Plan”, published Dec. 12, 2008. Also,
please see "Rating Government-Related Entities: A Primer," published June 14, 2006.
A Japanese-language version of this media release is available on Standard & Poor's Research Online atwww.researchonline.jp, or via CreditWire Japan on Bloomberg Professional at SPCJ <GO>.
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Analytical Contact:
Kumiko Kakimoto, Tokyo(81) 3-4550-8705
kumiko_kakimoto@standardandpoors.com

Media Contact:
Kyota Narimatsu(81) 3-4550-8411
tokyo_pressroom@standardandpoors.com

Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation,
investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played aleading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financialdecisions. For more information, visit http://www.standardandpoors.com.
Ratings may not be compiled into a database or systematically distributed or shared for commercial purposes in a manner that substitutes for a paid Standard & Poor’sservice.
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