Issuer: Medical Corporation Tokushinkai Group

JCR has affirmed the BB rating on senior debts of the issuer, revising the rating outlook from Stable to Positive.

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Tokushinkai Group is a dental group that is headquartered in Niigata City, Niigata Prefecture. While competition in dental industry is intensifying due to the increasing number of clinics and the decreasing number of patients, Tokushinkai Group retains its strong capacity to pull in patients on the strength of its provision of high-quality dentistry medical treatment. It resumed the turning out newly graduated dentists following start of its clinical practice dentistry residency program. Additionally, applicants for mid-career employment are increasing. As shown by these situations, its problem of unfilled dentist positions, which is a priority issue for it, is now disappearing. Its improved efficiency in medical treatment has increased productivity and it has now stability in cash flow. Although improvement in the financial structure remains an issue to be addressed, it has strengthened relations with financial institutions by inviting personnel from the main bank. JCR will examine dentist recruitment and turnover propensity and will then pay attention to changes in its earnings power and progress in its management base associated with the changes in the propensity.