JCR is recognized as an eligible ECAI by French Government

Jun. 22, 2007

JCR is pleased to announce that on June 19, 2007 JCR was officially recognized by the French Banking Committee as an eligible External Credit Assessment Institution (ECAI) for the regulatory purposes of using its ratings to determine the risk weights to evaluate bank exposure under the BASEL II Framework. This recognition means that JCR fulfilled the conditions of objectivity, independence, stability and transparency so as to have the creditability in the markets.

As a result of this recognition by France, JCR's credit ratings have become eligible to be utilized by banks having their headquarters in France for the purpose of calculating capital ratios (credit risk weight based on a standardized method) under the BASEL II Framework. At the same time, it is expected that JCR will be also recognized as an eligible ECAI by the Financial Banking and Insurance Committee of the Belgian Kingdom as a consequence of the French Government's undertaking of the "process facilitator" on behalf of Belgium in the Joint Assessment Process set by the European Union (EU).

The recognition from France makes JCR the first Japanese credit rating agency to have received such recognition from EU member countries. Since the EU bank supervisors agreed that the process and result of assessment concluded by any one member country would be respected by the other member countries, it is expected that the relevant conclusion by France and Belgium will be smoothly extended to the other member countries, so as to lead to the possibility of the additional recognition of JCR as an eligible ECAI by other member countries through a quick and concise process.

JCR has been designated as a "Designated Credit Rating Agency" by the Japanese Financial Services Agency under "the Cabinet Office Ordinance Concerning the Disclosure of Corporate Affair" and has been also recognized as "eligible ECAI" with respect to the regulatory purpose of the BASEL II Framework. In addition, in May JCR received a "no-action letter" from the staff of U.S.SEC, which permits identifying itself as a "NRSRO" (refer to JCR News Release 07-D-0239 May 24, 2007).
By the recognition from Europe, JCR is now identified in three principal financial markets, the U.S.A., Japan and Europe, as a rating agency which meets fairness and appropriateness of internal systems and high professional and ethical standards in its rating activities.

JCR shall continuously provide a wider range of rating information to the market participants, including issuers as well as investors, and shall perform a positive role for further development of financial markets.