# EDGAR Filing Document

**Accession Number:** 0000873292
**File Stem:** 0000873292-23-000001
**Filing Date:** 2023-3
**Character Count:** 60447
**Document Hash:** a6677f8d4cfef339a23fa4c09bf80feb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000873292-23-000001.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0000873292-23-000001

**CONFORMED SUBMISSION TYPE**: NRSRO-CE

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Japan Credit Rating Agency, Ltd.
- **CENTRAL INDEX KEY:** 0000873292
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** NRSRO-CE
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 110-00135
- **FILM NUMBER:** 23765979

**BUSINESS ADDRESS:**
- **STREET 1:** 5-15-8
- **CITY:** GINZA, CHUO-KU, TOKYO
- **STATE:** M0
- **ZIP:** 104-0061
- **BUSINESS PHONE:** 81-3-3544-7011

**MAIL ADDRESS:**
- **STREET 1:** 5-15-8
- **CITY:** GINZA, CHUO-KU, TOKYO
- **STATE:** M0
- **ZIP:** 104-0061

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** JAPAN CREDIT RATING AGENCY LTD                          /ADV
- **DATE OF NAME CHANGE:** 19910315

### Attached PDF Documents

**Attachment 1:** `Form_NRSRO-CE_20230328.pdf`

## FORM NRSRO

| OMB APPROVAL |
| --- |
| OMB Number: 3235-0625 |
| Expires: Dec. 31, 2023 |
| Estimated average burden hours per response: 36 |

# APPLICATION FOR REGISTRATION AS A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO)

SEC 1541 (1-15)

Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

1

# APPLICATION FOR REGISTRATION AS A
NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATION (NRSRO)

☐ INITIAL APPLICATION
☐ APPLICATION TO ADD CLASS
OF CREDIT RATINGS
☐ APPLICATION SUPPLEMENT
Items and/or Exhibits Supplemented:

☑ ANNUAL CERTIFICATION
☐ UPDATE OF REGISTRATION
Items and/or Exhibits Amended:

☐ WITHDRAWAL FROM REGISTRATION

Important: Refer to Form NRSRO Instructions for General Instructions, Item-by-Item Instructions, an Explanation of Terms, and the Disclosure Reporting Page (NRSRO). "You" and "your" mean the person filing or furnishing, as applicable, this Form NRSRO. "Applicant" and "NRSRO" mean the person filing or furnishing, as applicable, this Form NRSRO and any credit rating affiliate identified in Item 3.

1. A. Your full name:

Japan Credit Rating Agency, Ltd.

B. (i) Name under which your credit rating business is primarily conducted, if different from Item 1A:

JCR

(ii) Any other name under which your credit rating business is conducted and where it is used (other than the name of a credit rating affiliate identified in Item 3):

None

C. Address of your principal office (do not use a P.O. Box):

| 5-15-8 | Ginza, Chuo-ku, Tokyo | JAPAN | 104-0061 |
| --- | --- | --- | --- |
| (Number and Street) | (City) | (State/Country) | (Zip/Postal Code) |

D. Mailing address, if different:

| None |  |  |  |
| --- | --- | --- | --- |
| (Number and Street) | (City) | (State/Country) | (Zip/Postal Code) |

E. Contact person (See Instructions):

| Seiko Hattori | Compliance Management Division |
| --- | --- |
| (Name and Title) |  |

| 5-15-8 | Ginza, Chuo-ku, Tokyo | JAPAN | 104-0061 |
| --- | --- | --- | --- |
| (Number and Street) | (City) | (State/Country) | (Zip/Postal Code) |

CERTIFICATION:

The undersigned has executed this Form NRSRO on behalf of, and on the authority of, the Applicant/NRSRO. The undersigned, on behalf of the Applicant/NRSRO, represents that the information and statements contained in this Form, including Exhibits and attachments, all of which are part of this Form, are accurate in all significant respects. If

2

this is an ANNUAL CERTIFICATION, the undersigned, on behalf of the NRSRO, represents that the NRSRO's application on Form NRSRO, as amended, is accurate in all significant respects.

March 28, 2023

(Date)

Japan Credit Rating Agency, Ltd.

(Name of the Applicant/NRSRO)

By: SHOKICHI TAKAGI

(Signature)

Shokichi Takagi, President and CEO

(Print Name and Title)

2. A. Your legal status:

☑ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Other (specify) _________

B. Month and day of your fiscal year end: March 31

C. Place and date of your formation (i.e., state or country where you were incorporated, where your partnership agreement was filed, or where you otherwise were formed):

State/Country of formation: Japan Date of formation: April 1, 1985

3. Your credit rating affiliates (See Instructions):

None

(Name) (Address)

(Name) (Address)

(Name) (Address)

(Name) (Address)

(Name) (Address)

4. The designated compliance officer of the Applicant/NRSRO (See Instructions):

Kenji Sumitani

Chief Compliance Officer

(Name and Title)

5-15-8 Ginza, Chuo-ku, Tokyo JAPAN 104-0061

(Number and Street) (City) (State/Country) (Postal Code)

5. Describe in detail how this Form NRSRO and Exhibits 1 through 9 to this Form NRSRO will be made publicly and freely available on an easily accessible portion of the corporate Internet website of the Applicant/NRSRO (See Instructions):

Form NRSRO and its exhibits are available in the following JCR's website;

https://www.jcr.co.jp/en/service/company/regu/nrsro/

6. COMPLETE ITEM 6 ONLY IF THIS IS AN INITIAL APPLICATION, APPLICATION SUPPLEMENT, OR APPLICATION TO ADD A CLASS OF CREDIT RATINGS.

A. Indicate below the classes of credit ratings for which the Applicant/NRSRO is applying to be registered. For each class, indicate the approximate number of obligors, securities, and money market instruments in that class as of the date of this application for which the Applicant/NRSRO has an outstanding credit ratings and the approximate date the Applicant/NRSRO began issuing credit ratings as a "credit rating agency" in that class on a continuous basis through the present (See Instructions):

3

| Class of credit ratings | Applying for registration | Approximate number currently outstanding | Approximate date issuance commenced |
| --- | --- | --- | --- |
| financial institutions as that term is defined in section 3(a)(46) of the Exchange Act (15 U.S.C. 78c(a)(46)), brokers as that term is defined in section 3(a)(4) of the Exchange Act (15 U.S.C. 78c(a)(4)), and dealers as that term is defined in section 3(a)(5) of the Exchange Act (15 U.S.C. 78c(a)(5)) | ☐ |  |  |
| insurance companies as that term is defined in section 3(a)(19) of the Exchange Act (15 U.S.C. 78c(a)(19)) | ☐ |  |  |
| corporate issuers | ☐ |  |  |
| issuers of asset-backed securities as that term is defined in 17 CFR 229.1101(c) | ☐ |  |  |
| issuers of government securities as that term is defined in section 3(a)(42) of the Exchange Act (15 U.S.C. 78c(a)(42)), municipal securities as that term is defined in section 3(a)(29) of the Exchange Act (15 U.S.C. 78c(a)(29)), and foreign government securities | ☐ |  |  |

B. Briefly describe how the Applicant/NRSRO makes the credit ratings in the classes indicated in Item 6A readily accessible for free or for a reasonable fee (See Instructions):

C. Check the applicable box and attach certifications from qualified institutional buyers, if required (See Instructions):

☐ The Applicant/NRSRO is attaching _______ certifications from qualified institutional buyers to this application. Each is marked "Certification from Qualified Institutional Buyer."
☐ The Applicant/NRSRO is exempt from the requirement to file certifications from qualified institutional buyers pursuant to section 15E(a)(1)(D) of the Exchange Act.

Note: You are not required to make a Certification from a Qualified Institutional Buyer filed with this Form NRSRO publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep these certifications confidential by marking each page "Confidential Treatment" and complying with Commission rules governing confidential treatment. The Commission will keep the certifications confidential upon request to the extent permitted by law.

4

# **7. DO NOT COMPLETE ITEM 7 IF THIS IS AN INITIAL APPLICATION.**

**A.** Indicate below the classes of credit ratings for which the NRSRO is currently registered. For each class, indicate the approximate number of obligors, securities, and money market instruments in that class for which the NRSRO had an outstanding credit rating as of the most recent calendar year end and the approximate date the NRSRO began issuing credit ratings as a “credit rating agency” in that class on a continuous basis through the present (See Instructions):

| Class of credit rating | Currently registered | Approximate number outstanding as of the most recent calendar year end | Approximate date issuance commenced |
| --- | --- | --- | --- |
| financial institutions as that term is defined in section 3(a)(46) of the Exchange Act (15 U.S.C. 78c(a)(46)), brokers as that term is defined in section 3(a)(4) of the Exchange Act (15 U.S.C. 78c(a)(4)), and dealers as that term is defined in section 3(a)(5) of the Exchange Act (15 U.S.C. 78c(a)(5)) | X | 923 | 1985 |
| insurance companies as that term is defined in section 3(a)(19) of the Exchange Act (15 U.S.C. 78c(a)(19)) | X | 99 | 1987 |
| corporate issuers | X | 3,296 | 1987 |
| issuers of asset-backed securities as that term is defined in 17 CFR 229.1101(c) | ☐ | n/a | n/a |
| issuers of government securities as that term is defined in section 3(a)(42) of the Act (15 U.S.C. 78c(a)(42)), municipal securities as that term is defined in section 3(a)(29) of the Exchange Act (15 U.S.C. 78c(a)(29)), and foreign government securities | X | 369 | 1987 |

**B.** Briefly describe how the NRSRO makes the credit ratings in the classes indicated in Item 7A readily accessible for free or for a reasonable fee (See Instructions):

Internet web site (for free), Facsimile services (for JPY95,000/year),

Rating Eye (web-site for JPY650,000/user/year and additional ID (if any) for JPY325,000/ID/year),

J-CRIS (database service to customers electronically for JPY2.4million /user/year)

| 8. Answer each question. Provide information that relates to a “Yes” answer on a Disclosure Reporting Page (NRSRO) and submit the Disclosure Reporting Page with this Form NRSRO (See Instructions). You are not required to make any disclosure reporting pages submitted with this Form publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep any disclosure reporting pages confidential by marking each page “Confidential Treatment” and complying with Commission rules governing confidential treatment. The Commission will keep the disclosure reporting pages confidential upon request to the extent permitted by law. |  |
| --- | --- |

5

|  | YES | NO |
| --- | --- | --- |
| A. Has the Applicant/NRSRO or any person within the Applicant/NRSRO committed or omitted any act, or been subject to an order or finding, enumerated in subparagraphs (A), (D), (E), (G), or (H) of section 15(b)(4) of the Securities Exchange Act of 1934, been convicted of any offense specified in section 15(b)(4)(B) of the Securities Exchange Act of 1934, or been enjoined from any action, conduct, or practice specified in section 15(b)(4)(C) of the Securities Exchange Act of 1934 in the ten years preceding the date of the initial application of the Applicant/NRSRO for registration as an NRSRO or at any time thereafter? | ☐ | X |
| B. Has the Applicant/NRSRO or any person within the Applicant/NRSRO been convicted of any crime that is punishable by imprisonment for 1 or more years, and that is not described in section 15(b)(4) of the Securities Exchange Act of 1934, or been convicted of a substantially equivalent crime by a foreign court of competent jurisdiction in the ten years preceding the date of the initial application of the Applicant/NRSRO for registration as an NRSRO or at any time thereafter? | ☐ | X |
| C. Is any person within the Applicant/NRSRO subject to any order of the Commission barring or suspending the right of the person to be associated with an NRSRO? | ☐ | X |

# **9. Exhibits (See Instructions).**

| Exhibit 1. Credit ratings performance measurement statistics. X Exhibit 1 is attached and made a part of this Form NRSRO. |
| --- |
| Exhibit 2. A description of the procedures and methodologies used in determining credit ratings. ☐ Exhibit 2 is attached and made a part of Form NRSRO. |
| Exhibit 3. Policies or procedures adopted and implemented to prevent the misuse of material, nonpublic information. ☐ Exhibit 3 is attached and made a part of this Form NRSRO. |
| Exhibit 4. Organizational structure. ☐ Exhibit 4 is attached to and made a part of this Form NRSRO. |
| Exhibit 5. The code of ethics or a statement of the reasons why a code of ethics is not in effect. ☐ Exhibit 5 is attached to and made a part of this Form NRSRO. |
| Exhibit 6. Identification of conflicts of interests relating to the issuance of credit ratings. ☐ Exhibit 6 is attached to and made a part of this Form NRSRO. |
| Exhibit 7. Policies and procedures to address and manage conflicts of interest. ☐ Exhibit 7 is attached to and made a part of this Form NRSRO. |

6

| Exhibit 8. Certain information regarding the credit rating agency's credit analysts and credit analyst supervisors. ☐ Exhibit 8 is attached to and made a part of this Form NRSRO. |
| --- |
| Exhibit 9. Certain information regarding the credit rating agency's designated compliance officer. ☐ Exhibit 9 is attached to and made a part of this Form NRSRO. |
| Exhibit 10. A list of the largest users of credit rating services by the amount of net revenue earned from the user during the fiscal year ending immediately before the date of the initial application. ☐ Exhibit 10 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 11. Audited financial statements for each of the three fiscal or calendar years ending immediately before the date of the initial application. ☐ Exhibit 11 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 12. Information regarding revenues for the fiscal or calendar year ending immediately before the date of the initial application. ☐ Exhibit 12 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 13. The total and median annual compensation of credit analysts. ☐ Exhibit 13 is attached and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |

7

# List of Material Changes in Exhibits of Form NRSRO

The following is a list of all material changes made to the items and exhibits to Form NRSRO during the calendar year ended December 31, 2022.

## 1. Update of January 3, 2022

Exhibit 4-2:

- Mr. Shoji Yamamoto became Division Manager of Internal Audit Division.

## 2. Update of April 1, 2022

Exhibit 4-2:

- Ms. Reiko Kikuchi became General Manager, Head of SFEG Evaluation Planning Dept.

Exhibit 8:

- Revised the total number of credit analysts and credit analyst supervisors.

## 3. Update of April 28, 2022

Exhibit 4-1:

- Changed “Strategic Marketing Dept.” to “Sustainable Finance Evaluation Marketing & Promotion Dept.”

Exhibit 4-2:

- Mr. Kazuhiro Hatatno became General Manager, Head of Sustainable Finance Evaluation Marketing & Promotion Dept.

Exhibit 4-3:

- Mr. Kazuhiro Hatatno took responsibility for Sustainable Finance Evaluation Marketing & Promotion Dept.

## 4. Update of June 1, 2022

Exhibit 4-1:

- Changed “Relationship Management Dept.” to “Global Marketing Dept.”

- Changed “RM Planning and Administration Division” to “Marketing Planning and Administration Division”
- Established “International Business Marketing and Promotion Dept.”

Exhibit 4-2:

- Mr. Kazuhiro Hatatno became General Manager, Head of Global Marketing Dept.
- Mr. Kenich Nagaoka became Division Manager of Marketing Planning and Administration Division
- Mr. Haruhiko Shiono became General Manager, Head of International Business Marketing and Promotion Dept.

Exhibit 4-3:

- Mr. Kazuhiro Hatatno took responsibility for Global Marketing Dept. and International Business Marketing and Promotion Dept.

5. Update of June 20, 2022

Exhibit 4-2:

- Mr. Tomohiro Miyao became General Manager, Head of Financial Institution Rating Dept.

Exhibit 4-3:

- Mr. Shozo Matsumura was appointed as Managing Director.

6. Update of July 1, 2022

Exhibit 4-3:

- Mr. Yoshinori Namioka was appointed as Managing Executive Officer.
- Ms. Atsuko Kajiwara was appointed as Managing Executive Officer.
- Mr. Mikiya Kubota was appointed as Executive Officer.
- Mr. Mikiya Kubota took responsibility for Corporate Rating Dept. I, Public Sector Rating Dept., Corporate Rating Dept. II and SME Rating Division.

7. Update of August 2, 2022

Exhibit 4-2:

- Mr. Kiichi Sugiura became General Manager, Head of International Dept.

Exhibit 4-3:

- Mr. Yoshinori Namioka took responsibility for International Dept.

8. Update of September 1, 2022

Exhibit 2-1:

- The quorum of Rating Committee was revised from four to five.

Exhibit 4-2:

- Mr. Nobuyuki Kato became General Manager, Head of Corporate Management & Planning Dept.

9. Update of October 17, 2022

Exhibit 4-2:

- Mr. Kengo Sakaguchi became General Manager, Head of Rating Administration Dept.
- Mr. Kenji Sumitani became Division Manager of Compliance Management Division.

Exhibit 9:

- Mr. Kenji Sumitani was appointed as Chief Compliance Officer and so Information regarding JCR's Designated Compliance Officer was replaced.

End.

**Attachment 2:** `Ex-99_E1_JCR_20230328.pdf`

![img-0.jpeg](img-0.jpeg)

Japan Credit Rating Agency, Ltd.

# **Exhibit 1. Credit ratings performance measurement statistics**

# **Transition/Default Matrices**

The Transition/Default Matrices presented below was produced by following the instructions regarding “Sample Matrix” required as a part of Form NRSRO.

# **1. Financial Institutions, Brokers, or Dealers**

# **Financial Institutions, Brokers, or Dealers - 1-Year Transition and Default Rates**
(December 31, 2021 through December 31, 2022)

| Credit Ratings as of 12/31/2021 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2021-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Workdowns (other) |  |
| AAA | 7 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 3 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 20 |  | 5% | 95% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 24 |  |  | 4% | 96% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 24 |  |  |  | 17% | 83% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 30 |  |  |  | 3% | 23% | 73% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 32 |  |  |  |  |  | 19% | 76% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3% |
| BBB+ | 21 |  |  |  |  |  |  | 5% | 80% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5% |
| BBB | 13 |  |  |  |  |  |  |  | 9% | 55% | 18% |  |  |  |  |  |  |  |  |  |  |  |  | 18% |
| BBB- | 4 |  |  |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 176 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **Financial Institutions, Brokers, or Dealers - 3-Year Transition and Default Rates**
(December 31, 2019 through December 31, 2022)

| Credit Ratings as of 12/31/2019 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2019-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Workdowns (other) |  |
| AAA | 7 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 3 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 20 |  | 5% | 95% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 20 |  |  | 5% | 96% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 24 |  |  |  | 21% | 61% | 7% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11% |
| A | 31 |  |  |  | 3% | 23% | 65% | 3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6% |
| A- | 30 |  |  |  |  |  | 20% | 31% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10% |
| BBB+ | 18 |  |  |  |  |  |  | 17% | 78% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6% |
| BBB | 12 |  |  |  |  |  |  |  | 42% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  | 8% |
| BBB- | 6 |  |  |  |  |  |  |  |  |  | 83% |  |  |  |  |  |  |  |  |  |  |  |  | 17% |
| BB+ | 1 |  |  |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 176 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

1

![img-1.jpeg](img-1.jpeg)

Japan Credit Rating Agency, Ltd.

# **Financial Institutions, Brokers, or Dealers - 10-Year Transition and Default Rates**  
(December 31, 2012 through December 31, 2022)

| Credit Ratings as of 12/31/2012 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2012-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Watches a- (other) |
| AAA | 7 | 80% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14% |
| AA+ | 3 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 11 |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 22 |  | 5% | 14% | 39% | 5% | 5% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14% |
| A+ | 22 |  |  | 9% | 23% | 45% | 14% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14% |
| A | 34 |  |  |  | 6% | 21% | 35% | 9% | 3% |  |  |  |  |  |  |  |  |  |  |  |  |  | 26% |
| A- | 29 |  |  | 3% | 3% | 3% | 21% | 38% | 3% |  |  |  |  |  |  |  |  |  |  |  |  |  | 28% |
| BBB+ | 18 |  |  |  | 6% |  | 11% | 39% | 17% | 6% |  |  |  |  |  |  |  |  |  |  |  |  | 22% |
| BBB | 23 |  |  |  |  |  |  | 4% | 52% | 22% |  |  |  |  |  |  |  |  |  |  |  |  | 22% |
| BBB- | 7 |  |  |  |  |  |  |  |  |  | 55% |  |  |  |  |  |  |  |  |  |  |  | 43% |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 176 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **2. Insurance Companies**

# **Insurance Companies - 1-Year Transition and Default Rates**  
(December 31, 2021 through December 31, 2022)

| Credit Ratings as of 12/31/2021 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2021-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Watches a- (other) |
| AAA | 2 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 7 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 7 |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 9 |  |  | 44% | 56% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 2 |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 3 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 2 |  |  |  |  |  |  | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 32 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

2

![img-2.jpeg](img-2.jpeg)

Japan Credit Rating Agency, Ltd.

# **Insurance Companies - 3-Year Transition and Default Rates**

(December 31, 2019 through December 31, 2022)

| Credit Ratings as of 12/31/2019 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2019-12/31/2022 (Percent) |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Wabukata (other) |
| AAA | 2 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 5 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 7 |  | 14% | 71% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 14% |
| AA- | 10 |  |  | 10% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 3 |  |  | 33% |  | 67% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 1 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 1 |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 1 |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **Insurance Companies - 10-Year Transition and Default Rates**

(December 31, 2012 through December 31, 2022)

| Credit Ratings as of 12/31/2012 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2012-12/31/2022 (Percent) |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Wabukata (other) |
| AAA | 2 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 3 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 6 |  | 30% | 17% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 33% |
| AA- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 8 |  |  | 50% | 36% | 13% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 4 |  |  |  | 29% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 75% |
| A- | 1 |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 1 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 1 |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

3

![img-3.jpeg](img-3.jpeg)

Japan Credit Rating Agency, Ltd.

### 3. Corporate Issuers

#### Corporate Issuers - 1-Year Transition and Default Rates (December 31, 2021 through December 31, 2022)

| Credit Ratings as of 12/31/2021 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2021-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Off | Withdrawn (value) |
| AAA | 14 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 16 | 6% | 88% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6% |
| AA | 53 |  | 4% | 96% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 70 |  | 1% | 7% | 91% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 95 |  |  |  | 14% | 83% | 2% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1% |
| A | 97 |  |  |  | 1% | 13% | 65% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1% |
| A- | 103 |  |  |  |  | 3% | 17% | 77% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4% |
| BBB+ | 63 |  |  |  |  |  |  | 24% | 71% |  |  |  |  |  |  |  |  |  |  |  |  |  | 3% |
| BBB | 44 |  |  |  |  |  | 3% |  | 16% | 72% |  |  |  |  |  |  |  |  |  |  |  |  | 9% |
| BBB- | 18 |  |  |  |  |  |  |  | 6% | 17% | 61% |  |  |  |  |  |  |  |  |  | 6% |  | 11% |
| BB+ | 12 |  |  |  |  |  |  |  |  |  |  | 58% | 9% | 8% |  |  | 8% |  |  |  |  |  | 17% |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 565 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

#### Corporate Issuers - 3-Year Transition and Default Rates (December 31, 2019 through December 31, 2022)

| Credit Ratings as of 12/31/2019 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2019-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Off | Withdrawn (value) |
| AAA | 6 | 88% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13% |
| AA+ | 15 |  | 87% | 13% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 46 |  | 4% | 86% | 2% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4% |
| AA- | 63 |  |  | 14% | 39% | 2% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6% |
| A+ | 86 |  | 1% | 1% | 22% | 70% | 3% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2% |
| A | 101 |  |  |  | 2% | 25% | 65% | 4% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6% |
| A- | 99 |  |  |  |  | 5% | 25% | 60% |  |  |  |  |  | 1% |  |  |  |  |  |  |  |  | 11% |
| BBB+ | 69 |  |  |  |  | 1% | 6% | 29% | 48% | 4% | 1% |  |  |  |  |  | 1% |  |  |  |  |  | 9% |
| BBB | 52 |  |  |  |  |  | 4% | 4% | 17% | 44% | 8% | 2% |  |  |  |  |  |  |  |  |  |  | 21% |
| BBB- | 15 |  |  |  |  |  |  |  | 7% | 33% | 40% |  |  |  |  |  |  |  |  |  | 7% |  | 13% |
| BB+ | 7 |  |  |  |  |  |  |  |  |  |  | 86% | 14% |  |  |  |  |  |  |  |  |  |  |
| BB | 2 |  |  |  |  |  |  |  | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  | 50% |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 563 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

4

![img-4.jpeg](img-4.jpeg)

Japan Credit Rating Agency, Ltd.

# **Corporate Issuers - 10-Year Transition and Default Rates**  
(December 31, 2012 through December 31, 2022)

| Credit Ratings as of 12/31/2012 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2012-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Off | Withdrawn & (other) |
| AAA | 9 | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 44% |
| AA+ | 15 | 7% | 67% | 33% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13% |
| AA | 30 |  | 3% | 63% | 10% | 7% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13% |
| AA- | 45 |  | 7% | 33% | 30% | 9% | 2% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11% |
| A+ | 60 |  |  | 2% | 28% | 38% | 13% | 2% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 17% |
| A | 89 |  |  | 2% | 12% | 31% | 31% | 4% |  |  |  |  |  |  |  |  |  |  |  |  | 1% |  | 17% |
| A- | 82 |  |  |  | 4% | 16% | 29% | 37% | 1% |  |  |  |  |  |  |  |  |  |  |  |  |  | 19% |
| BBB+ | 65 |  |  |  |  |  | 16% | 23% | 25% | 3% | 2% | 3% |  |  |  |  | 2% |  |  |  | 3% |  | 22% |
| BBB | 63 |  |  |  |  | 3% | 3% | 22% | 21% | 13% | 6% | 2% |  |  |  |  |  |  |  |  |  |  | 30% |
| BBB- | 31 |  |  |  |  |  |  | 6% | 10% | 26% | 6% |  |  |  |  |  |  |  |  |  | 3% |  | 48% |
| BB+ | 11 |  |  |  | 9% |  |  |  |  | 18% | 38% | 27% | 9% |  |  |  |  |  |  |  |  |  | 18% |
| BB | 2 |  |  |  |  |  |  | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 50% |
| BB- | 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 1 |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 504 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **4. Sovereign Issuers**

# **Sovereign Issuers - 1-Year Transition and Default Rates**  
(December 31, 2021 through December 31, 2022)

| Credit Ratings as of 12/31/2021 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2021-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Off | Withdrawn & (other) |
| AAA | 13 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 2 | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 4 |  | 25% | 75% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 2 |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 4 |  |  |  | 20% | 75% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 5 |  |  |  |  | 20% | 40% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 2 |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 2 |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 2 |  |  |  |  |  |  |  |  | 50% |  |  |  |  |  |  |  |  |  |  | 50% |  |  |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 1 |  |  |  |  |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 33 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

5

![img-5.jpeg](img-5.jpeg)

Japan Credit Rating Agency, Ltd.

# **Sovereign Issuers - 3-Year Transition and Default Rates**

(December 31, 2019 through December 31, 2022)

| Credit Ratings as of 12/31/2019 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2019-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Wholeman n (other) |
| AAA | 13 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 2 | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 4 |  | 25% | 75% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 2 |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 4 |  |  |  | 25% | 75% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 4 |  |  |  |  | 25% | 75% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 1 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 4 |  |  |  |  |  |  | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 2 |  |  |  |  |  |  |  |  | 50% |  |  |  |  |  |  |  |  |  |  | 50% |  |  |
| BBB- | 1 |  |  |  |  |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 37 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **Sovereign Issuers - 10-Year Transition and Default Rates**

(December 31, 2012 through December 31, 2022)

| Credit Ratings as of 12/31/2012 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2012-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Oil | Wholeman n (other) |
| AAA | 13 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 2 | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 1 |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 3 |  | 33% |  | 33% |  | 33% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 4 |  |  | 25% | 25% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 3 |  |  |  |  | 67% | 33% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 4 |  |  |  |  |  | 25% |  | 25% | 25% |  |  |  |  |  |  |  |  |  |  | 25% |  |  |
| BBB | 2 |  |  |  |  |  |  | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 1 |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 1 |  |  |  |  |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 34 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **5. U.S. Public Finance**

# **U.S. Public Finance - 1-Year Transition and Default Rates**

(December 31, 2021 through December 31, 2022)

Not Applicable, since no credit rating was determined during the period shown above.

# **U.S. Public Finance - 3-Year Transition and Default Rates**

(December 31, 2019 through December 31, 2022)

Not Applicable, since no credit rating was determined during the period shown above.

# **U.S. Public Finance - 10-Year Transition and Default Rates**

(December 31, 2012 through December 31, 2022)

Not Applicable, since no credit rating was determined during the period shown above.

6

JCR

Japan Credit Rating Agency, Ltd.

## 6. International Public Finance

### International Public Finance - 1-Year Transition and Default Rates

(December 31, 2021 through December 31, 2022)

| Credit Ratings as of 12/31/2021 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2021-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid (d) | Withdrawn (other) |  |
| AAA | 9 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 4 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 4 |  | 50% | 50% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 1 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 1 |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 2 |  |  |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 21 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

### International Public Finance - 3-Year Transition and Default Rates

(December 31, 2019 through December 31, 2022)

| Credit Ratings as of 12/31/2019 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2019-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid (d) | Withdrawn (other) |  |
| AAA | 8 | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA+ | 2 |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA | 6 |  | 67% | 33% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AA- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A+ | 1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |
| A | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A- | 1 |  |  |  |  |  | 100% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 3 |  |  |  |  |  |  | 33% | 67% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 21 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

7

JCR

Japan Credit Rating Agency, Ltd.

# **International Public Finance - 10-Year Transition and Default Rates**
(December 31, 2012 through December 31, 2022)

| Credit Ratings as of 12/31/2012 |  | Credit Ratings as of 12/31/2022(Percent) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other Outcomes During 12/31/2012-12/31/2022 (Percent) |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit Rating | Number of Ratings Outstanding | AAA | AA+ | AA | AA- | A+ | A | A- | BBB+ | BBB | BBB- | BB+ | BB | BB- | B+ | B | B- | CCC | CC | C | Default | Paid Off | Withdrawn a- (other) |  |
| AAA | 4 | 35% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25% |  |
| AA+ | 3 | 33% |  | 33% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 33% |  |
| AA | 3 |  | 67% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 33% |  |
| AA- | 5 |  | 60% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 40% |  |
| A+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| A | 2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 100% |  |
| A- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB+ | 3 |  |  |  |  |  | 33% |  | 67% |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BBB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| BB- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B+ | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| B- | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CCC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| CC | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| C | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total | 20 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

# **Rating Symbols and Definitions**

(1) Long-term Issuer Rating Scale

| AAA | The highest level of certainty of an obligor to honor its financial obligations |
| --- | --- |
| AA | A very high level of certainty to honor the financial obligations |
| A | A high level of certainty to honor the financial obligations |
| BBB | An adequate level of certainty to honor the financial obligations. However, this certainty is more likely to diminish in the future than with the higher rating categories. |
| BB | Although the level of certainty to honor the financial obligations is not currently considered problematic, this certainty may not persist in the future. |
| B | A low level of certainty to honor the financial obligations, giving cause for concern |
| CCC | There are factors of uncertainty that the financial obligations will be honored, and there is a possibility of default. |
| CC | A high default risk |
| C | A very high default risk |
| LD | JCR judges that while an obligor does not honor part of the agreed to financial obligations, but it honors all its other agreed to financial obligations. |
| D | JCR judges that all the financial obligations are, in effect, in default. |

A plus (+) or minus (-) sign may be affixed to the rating symbols from AA to B to indicate relative standing within each of those rating scales.

- (a) A Long-term Issuer Rating Scale enables comparison of the overall capacity of an obligor (issuer) to honor its entire financial obligations with such overall capacity of others.
- (b) The same Definitions of Rating Symbols and Scales shall be applied to the Ability to Pay Insurance Claims Rating.

8

JCR

Japan Credit Rating Agency, Ltd.

(2) Long-term Issue Rating Scale

| AAA | The highest level of certainty of an obligor to honor its financial obligations |
| --- | --- |
| AA | A very high level of certainty to honor the financial obligations |
| A | A high level of certainty to honor the financial obligations |
| BBB | An adequate level of certainty to honor the financial obligations. However, this certainty is more likely to diminish in the future than with the higher rating categories. |
| BB | Although the level of certainty to honor the financial obligations is not currently considered problematic, this certainty may not persist in the future. |
| B | A low level of certainty to honor the financial obligations, giving cause for concern |
| CCC | There are factors of uncertainty that the financial obligations will be honored, and there is a possibility of default. |
| CC | A high default risk |
| C | A very high default risk |
| D | JCR judges that the obligation is in default. |

A plus (+) or minus (-) sign may be affixed to the rating symbols from AA to B to indicate relative standing within each of those rating scales.

- (a) A Long-term Issue Rating Scale enables comparison of certainty that the obligations of more than a year will be honored.
- (b) In light of attempting to call investors' attention to this matter, JCR may make notch differences between a Long-term Issue Rating and Long-term Issuer Rating when it considers there is a difference in terms of probability of recovery between the two as a result of assessing the degree of certainty that the obligation will be honored as agreed.
- (c) A Long-term Issue Rating includes an issuer's specific obligations it owes such as bonds and issue programs (e.g., medium-term note program).
- (d) The same Definitions of Rating Symbols and Scales shall be applied to ratings for hybrid securities such as preferred stock.

**Definition of "Default"**

For the purpose of producing the Transition/Default Matrix shown in this exhibit, "Default" is defined as a state, in which principal or interest payments of financial obligations cannot be honored as initially agreed. This includes the following cases: (i) JCR judges that all the financial obligations are, in effect, in default. (ii) JCR judges that while an obligor does not honor part of the agreed to financial obligations, but it honors all its other agreed to financial obligations. Usually, when cases fall under the former, "D" ratings are assigned, and "LD" ratings are assigned when cases fall under the latter. Commencement of legal bankruptcy proceedings is a typical example of the former situation, and a situation where specific creditor grants debt forgiveness or DES for debt relief is a typical example of the latter situation. JCR counts a case where "JCR judges that while an obligor does not honor part of the agreed to financial obligations, but it honors all its other agreed to financial obligations" as a "Default" for producing the Transition/Default Matrix even prior to its introduction of "LD" to the rating symbol on August 28, 2012.

9

JCR

Japan Credit Rating Agency, Ltd.

# **Credit Ratings Subject to the Disclosure Requirement**

The following is the uniform resource locator (URL) of JCR’s corporate Internet Web site where the credit rating histories required to be disclosed pursuant to 17 CFR 240. 17g-7(b) effective from June 15, 2015.

https://www.jcr.co.jp/en/service/company/regu/nrsro/

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