NEWS RELEASE
Jan 14, 2022

R&I Assigns AA+, Stable: University of Tsukuba
Rating and Investment Information, Inc. (R&I) has announced the following:
ISSUER:

University of Tsukuba
Issuer Rating: AA+, Assigned
Rating Outlook: Stable

RATIONALE:
The University of Tsukuba, whose predecessor was the Tokyo University of Education, is a researchoriented comprehensive university established in the Science City in the Tsukuba area (Tsukuba City,Ibaraki Prefecture) in 1973. The university has its origin in a normal school established in 1872 and isknown as the educational institution served by Dr. Jigoro Kano as principal, who founded Kodokan Judo.
The University of Tsukuba has developed a wide area of academic disciplines ranging from humanities
and social sciences, medicine, health and sport sciences to art and design. With strength in its
interdisciplinary and international nature, the university has splendid achievements in the fields ofeducation and research. It is fully funded by the government as a national university corporation under thejurisdiction of the Ministry of Education, Culture, Sports, Science and Technology (MEXT). Given theuniversity's robust business base and its very high importance for the government's educational policy,
R&I has assigned an Issuer Rating of AA+, the same as the sovereign rating for Japan.
Higher education institutions, mainly universities, play a vital role as public property that contributes toeducation, research and society. Especially national universities, as executive agencies responsible forhigher education, are very important for government policy. Although the government's financial support,
including management expenses grants, is weakening gradually, university operations will be backed up
through various measures and the easing of regulations toward autonomy in universities and their growth.
The national university corporation as a government agency retains remarkably high creditworthiness,since its close relationship with the government is unlikely to be undermined.
The University of Tsukuba pursues the philosophy of being open and promoting constant reforms. Ledby the government, it was born as a new concept university with the Tokyo University of Education at its
core and provided with a faculty organization and education and research systems which are different
from organizations and management systems of conventional universities. Its education and research
enjoy an enormous reputation, as it is ranked ninth among Japanese universities in the number of theses
cited frequently for 2021 according to an external assessment organization and its educational programs
were adopted for various educational projects of MEXT. Partly because the University of Tsukuba andTsukuba Science City were designed together historically, many governmental and private researchfacilities are located in the neighborhood of the university campus. Capitalizing on its close relationships
with public institutions and industries, the university is placed fourth in the number of university-originatedventures and seeing an increasing trend in the amount of funds for joint and commissioned research
projects with companies every year. It also occupies one of the top positions in Japan in terms of thenumber and amount of external funds raised, which implies its excellent management capabilities.
An affiliated hospital plays a key role in providing state-of-the-art medical service as the only Special
Functioning Hospital in Ibaraki Prefecture and is well known as a local hospital that accepts patients withdifficult diseases. It also provides advanced acute care proactively and in 2020, started the operation of
the first advanced critical care center accreditated by Ibaraki Prefecture. Despite the impact of theCOVID-19 pandemic, the affiliated hospital remained profitable in the fiscal year ended March 2021,
supported by its management effort and subsidies. As such, revenue/expenditure of the university's
hospital operations is stable.
Taking advantage of its broad academic disciplines and internationality, the University of Tsukuba hascontributed to society through education and research based on its multidimensional approach. It is■Contact: Sales and Marketing Division, Customer Service Dept.
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TEL.+81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL.+81-(0)3-6273-7273

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp

Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are notstatements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment.
R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is notliable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details,
please refer to https://www.r-i.co.jp/en/docs/policy/site.html.
© Rating and Investment Information, Inc.

NEWS RELEASE
working on innovation by creating knowledge and nurturing human resources toward solving a variety of
global issues such as resource saving, decarbonization and the realization of a next-generation mobility
society. An industry-academia collaboration center with a large experiment facility attached is being
prepared near Tsukuba Station. R&I will examine details and progress of the project, since research
results at the center and the effects of practical implementation in society may enhance the reputation of
the University of Tsukuba further.
The university has taken pioneering initiatives under its policy to promote constant reforms. It was thefirst university in Japan that put vice presidents and executive officers in place, which was followed byother national universities. The university maintains sound governance in terms of both organizational
structure and actual practices. It will establish a Bureau of University Management Promotion (tentative)
in 2022 to enhance the capacity to control the organization and intends to plan and monitor strategic
university management. Eyes will be on specific activities and results.
The primary rating methodologies applied to this rating are provided at "R&I's Analytical Approach toGovernment Agencies", "R&I's Basic Methodology for Corporate Credit Ratings" and "SchoolCorporations". The methodologies are available at the web site listed below, together with other ratingmethodologies that are taken into consideration when assigning the rating.
https://www.r-i.co.jp/en/rating/about/rating_method.html
R&I RATINGS:ISSUER:

University of Tsukuba

Issuer Rating
RATING:
AA+, Assigned
RATING OUTLOOK: Stable■Contact: Sales and Marketing Division, Customer Service Dept.
■Media Contact : Corporate Planning Division (Public Relations)Rating and Investment Information, Inc.

TEL.+81-(0)3-6273-7471 E-mail. infodept@r-i.co.jp
TEL.+81-(0)3-6273-7273

TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp

Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are notstatements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment.
R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is notliable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details,please refer to https://www.r-i.co.jp/en/docs/policy/site.html.
© Rating and Investment Information, Inc.