Rating Action: Moody's downgrades 13 Japan government-related issuer ratings to Aa3 following
sovereign downgrade
Global Credit Research - 24 Aug 2011
Tokyo, August 24, 2011 -- Moody's Japan K.K. has downgraded the ratings of 13 Japanese government-related issuers (GRIs) to Aa3 from Aa2,
subsequent to Moody's decision on August 24 to downgrade the Japanese Government Bond (JGB) rating to Aa3 -- with a stable outlook -- fromAa2.
The rating outlooks of the 13 GRIs are stable.
This rating action concludes the rating review for possible downgrade initiated on May 31, 2011.
The 13 GRIs are:(1) Japan Expressway Holding and Debt Repayment Agency(2) East Nippon Expressway Company Limited(3) Central Nippon Expressway Company Limited(4) West Nippon Expressway Company Limited(5) Metropolitan Expressway Company Limited(6) Urban Renaissance Agency(7) Japan Railway Construction, Transport and Technology Agency(8) Kansai International Airport Company Limited(9) Japan Finance Corporation(10) Japan Finance Organization for Municipalities(11) Japan Housing Finance Agency(12) Development Bank of Japan Inc. (DBJ)(13) Shoko Chukin Bank, Ltd (SCB)
RATING RATIONALE
Today's rating action was solely prompted by Moody's decision to downgrade the JGB rating to Aa3.
Accordingly, the downgrades of these GRIs' ratings do not reflect any change in their standalone credit fundamentals and any change in theirstrong relationship with the Government of Japan.
The stable rating outlooks for these GRIs reflects the stable rating outlook of the government.
The GRIs are constrained by the government's debt rating.
Moody's uses a credit substitution approach for 11 of the above GRIs.
Accordingly, Moody's assigns the same rating as that of the government to these 11 institutions.
For the remaining two GRIs - DBJ and SCB - Moody's continues to apply its Joint Default Analysis approach. The probability of support from,and the dependence on, the Government of Japan for these two GRIs remain very high; thus, their final ratings are the same as thegovernment's rating.
Moody's continues to retain a baseline credit assessment (BCA) of 7 (on a scale of 1 to 21, where 1 represents lowest credit risk) for DBJ anda bank financial strength rating (BFSR) of D (translated into BCA of Ba2) for SCB, reflecting the Japanese government's unchanged objective offully privatizing these two institutions over the medium-term.
The principal methodologies used in these ratings were (1) Moody's Government-Related Issuers: Methodology Update, (2) Bank Financial
Strength Ratings: Global Methodology, and (3) Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology (allpublished on September 30, 2010) and available on www.moodys.co.jp.
Below is a list of those entities whose ratings have been downgraded with details of the rating actions.
Japan Expressway Holding and Debt Repayment Agency (Lead analyst: Okamoto Kenji)
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior unsecured debt ratings (domestic currency): to Aa3 from Aa2

Government-guaranteed senior secured debt ratings (domestic currency): to Aa3 from Aa2
Government-guaranteed senior unsecured debt ratings (domestic currency): to Aa3 from Aa2
East Nippon Expressway Company Limited (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior secured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Central Nippon Expressway Company Limited (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior secured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
West Nippon Expressway Company Limited (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior secured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Metropolitan Expressway Company Limited (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior secured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Urban Renaissance Agency (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Government-guaranteed senior secured debt rating (domestic currency): to Aa3 from Aa2
Japan Railway Construction, Transport and Technology Agency (Lead analyst: Okamoto Kenji)
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Kansai International Airport Company Limited (Lead analyst: Okamoto Kenji)
Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior secured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Japan Finance Corporation (Lead analyst: Yamamoto Tetsuya)Long-term issuer rating (domestic and foreign currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Government-guaranteed senior unsecured debt ratings (foreign currency): to Aa3 from Aa2
Senior unsecured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Japan Finance Organization for Municipalities (Lead analyst: Tamba Yuka)
Long-term issuer rating (domestic and foreign currency): to Aa3 from Aa2
Senior unsecured debt ratings (domestic currency): to Aa3 from Aa2
Senior unsecured Medium Term Note Program rating (domestic currency): to (P)Aa3 from (P)Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Government-guaranteed senior unsecured debt ratings (domestic and foreign currency): to Aa3 from Aa2
Government-guaranteed senior secured debt rating (domestic currency): to Aa3 from Aa2
Government-guaranteed senior unsecured shelf registration rating (foreign currency): to (P)Aa3 from (P)Aa2

Japan Housing Finance Agency (Lead analyst: Yamamoto Tetsuya)Long-term issuer rating (domestic currency): to Aa3 from Aa2
Development Bank of Japan Inc. (DBJ) (Lead analyst: Yamamoto Tetsuya)Long-term issuer rating (domestic currency): to Aa3 from Aa2
Senior secured debt ratings (domestic currency): to Aa3 from Aa2
Government-guaranteed senior secured debt ratings (domestic currency): to Aa3 from Aa2
Senior unsecured debt ratings (domestic and foreign currency): to Aa3 from Aa2
Government-guaranteed senior unsecured debt ratings (domestic and foreign currency): to Aa3 from Aa2
Senior unsecured shelf registration rating (domestic currency): to (P)Aa3 from (P)Aa2
Government-guaranteed senior unsecured shelf registration rating (foreign currency): to (P)Aa3 from (P)Aa2
Non-guaranteed Medium Term Note Program rating (domestic currency): to (P)Aa3 from (P)Aa2
Government-guaranteed Medium Term Note Program rating (domestic currency): to (P)Aa3 from (P)Aa2
Shoko Chukin Bank, Ltd (SCB) (Lead analyst: Yamamoto Tetsuya)Long-term Bank deposit ratings (domestic and foreign currency): to Aa3 from Aa2
Senior unsecured debt rating (domestic currency): to Aa3* from Aa2*By Japan regulations, this following rating was not requested by the issuer or the rating-related entities. Moody's has received any informationthat has not been publicly disclosed - and has been deemed to materially affect the credit evaluation - from rating-related entities pertinent to theissuance of the credit rating.
·JPY20bn SeriesJ1 senior unsecured bond due 2012: to Aa3 from Aa2
REGULATORY DISCLOSURES
Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public
information, confidential and proprietary Moody's information.
Measures taken to ensure the quality of this information include use of public information, reviews by a third party and verification by the lead
analyst.
Moody's considers the quality of information available on the issuer or obligations satisfactory for the purposes of maintaining a credit rating.
Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot inevery instance independently verify or validate information received in the rating process.
Credit ratings are Moody's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities.
Moody's defines credit risk as the risk that an entity may not meet its contractual, financial obligations as they come due and any estimatedfinancial loss in the event of default. Credit ratings do not address any other risk, including but not limited to: liquidity risk, market value risk, or
price volatility. Credit ratings do not constitute investment or financial advice, and credit ratings are not recommendations to purchase, sell, or
hold particular securities. No warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any
particular purpose of any such rating or other opinion or information is given or made by Moody's in any form or manner whatsoever. The credit
risk of an issuer or its obligations is assessed based on information received from the issuer or from public sources. Moody's may change therating when it deems necessary. Moody's may also withdraw the rating due to insufficient information, or for other reasons.
Moody's Japan K.K. is a credit rating agency registered with the Japan Financial Services Agency and its registration number is FSA
Commissioner (Ratings) No. 2. The Financial Services Agency has not imposed any supervisory measures on Moody's Japan K.K. in the pastyear.
Please see ratings tab on the issuer/entity page on the Moody's website for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to a time before Moody's Credit Ratings were fully digitized and accurate
data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the informationthat is available to it. Please see the ratings disclosure page on the Moody's website for further information.
Please see the Credit Policy page on the Moody's website for the methodologies used in determining ratings, further information on themeaning of each rating category and the definition of default and recovery.
Tokyo
Kenji Okamoto
Vice President - Senior Analyst
Corporate Finance Group
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100

TokyoKei Kitayama
MD - Asia-Pac Structured Fin
Moody's Japan K.K.
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100
Moody's Japan K.K.
Atago Green Hills Mori Tower 20fl
2-5-1 Atago, Minato-ku
Tokyo 105-6220
Japan
JOURNALISTS: (03) 5408-4110
SUBSCRIBERS: (03) 5408-4100

Copyright 2011 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights
reserved.

CREDIT RATINGS ARE MOODY'S JAPAN K. K.'S ("MJKK") CURRENT OPINIONS OF THE RELATIVE FUTURE
CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MJKK DEFINESCREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS
THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO
NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK,OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT.
CREDIT RATINGS DO NOT CONSTITUTE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS ARENOT RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. CREDIT RATINGS DO
NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MJKK ISSUESITS CREDIT RATINGS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITSOWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE,HOLDING, OR SALE.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO,
COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED,REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD,OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR
MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTENCONSENT. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate andreliable. Because of the possibility of human or mechanical error as well as other factors, however, all information
contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so thatthe information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to bereliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor andcannot in every instance independently verify or validate information received in the rating process. Under nocircumstances shall MOODY'S have any liability to any person or entity for (a) any loss or damage in whole or in partcaused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance or contingency withinor outside the control of MOODY'S or any of its directors, officers, employees or agents in connection with theprocurement, collection, compilation, analysis, interpretation, communication, publication or delivery of any suchinformation, or (b) any direct, indirect, special, consequential, compensatory or incidental damages whatsoever(including without limitation, lost profits), even if MOODY'S is advised in advance of the possibility of such damages,
resulting from the use of or inability to use, any such information.
The ratings, financial reporting analysis, projections, and other observations, if any, constituting part of the information
contained herein are, and must be construed solely as, statements of opinion and not statements of fact orrecommendations to purchase, sell or hold any securities. Each user of the information contained herein must makeits own study and evaluation of each security it may consider purchasing, holding or selling. NO WARRANTY,
EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS
GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

MJKK is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by
Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of Moody’s Corporation(MCO). MJKK is a credit rating
agency registered with the Japan Financial Services Agency and its registration number is FSA Commissioner(Ratings) No. 2.

MJKK hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures,notes and commercial paper) and preferred stock rated by MJKK have, prior to assignment of any rating, agreed topay to MJKK for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately
JPY350,000,000. MCO and MJKK also maintain policies and procedures to address the independence of MJKK's
ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO andrated entities, and between entities who hold ratings from MJKK and have also publicly reported to the SEC anownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Shareholder
Relations - Corporate Governance - Director and Shareholder Affiliation Policy."

Any publication into Australia of this document is by MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61003 399 657, which holds Australian Financial Services License no. 336969. This document is intended to be provided
only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to accessthis document from within Australia, you represent to MOODY'S that you are, or are accessing the document as arepresentative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly
disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations
Act 2001.

This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity
securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retailinvestors to make any investment decision based on this credit rating. If in doubt you should contact your financial orother professional adviser.