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JCR’s Global Strategy

In recent years, Japanese companies are increasingly expanding their business base in overseas markets, where the need is arising to prove their creditworthiness for trading or raising funds. Also, in a large number of emerging market countries, it is required to have a credit rating from a local credit rating agency (“CRA”). JCR, as a CRA covering more than 60% of issuers in Japan, continues to take initiatives to meet such needs, which, amongst others, includes:
(i) To enable JCR’s credit ratings to be directly usable in foreign markets by complying local regulations on CRAs and being certified as a “qualified CRA” as much as possible;
(ii) To facilitate Japanese companies to have a local credit rating by building alliances with local CRAs in emerging market countries;
(iii) To provide JCR’s professional analysis on Japanese entities to overseas investors by issuing reports bilingually (i.e., English and Japanese).

JCR is also promoting to invigorate the Tokyo market by increasing the number of foreign issuers through its network of CRAs abroad. We believe that building such alliances with local CRAs that are most familiar with the local contexts, especially in the emerging markets including fast-growing Asia, could underpin JCR to provide the Japanese investors with the latest information, accurate understanding and objective assessment.

JCR Ratings in the World

Amid the financial and economic globalization, JCR is making JCR ratings directly useable in foreign jurisdictions as well. JCR is officially recognized in major markets such as US, Europe and Asia as follows:

Bond Bank Loan Others
Credit Rating Agency registered as per Financial Instruments and Exchange Act

External Credit Assessment Institution (ECAI)
Nationally Recognized Statistical Rating Organization (NRSRO) registered as per Securities Exchange Act of 1934
Credit Rating Agency certified as per the EU regulations on CRAs1/

External Credit Assessment Institution (ECAI) 1/
External Credit Assessment Institution (ECAI)
Hong Kong
External Credit Assessment Institution (ECAI)
Foreign Credit Rating Agency approved by Thai SEC2/
Credit Rating Agency accredited by Bank Indonesia (BI) for BI Regulation on non-bank corporate external debt management3/

1/ Regarding those ratings that are related to entities established or financial instruments issued in third countries.

2/ Regarding those ratings that are either (1) in international scale, (2) if in national scale, assigned to bonds issued by international organizations, foreign governments, foreign entities or their subsidiaries in Thailand, or denominated in a foreign currency.

3/ In the case of borrowing from or guaranteed by a parent company, ratings on the parent company can be used.

  • Overview of Regulations in these jurisdictions
  • For other jurisdictions, please feel free to consult with JCR. From our extensive global network of rating agencies, JCR will introduce a rating agency that best suits your company’s needs, and support your rating solicitation.

JCR’s Worldwide Networks

JCR has been collecting various kinds of information on over 200 overseas issuers, including sovereigns, international organizations, corporates, financial institutions, etc. and been publishing its credit ratings.
With the expanding overseas investments by Japanese investors and accelerating business developments by Japanese corporations, JCR is strengthening its alliances with overseas CRAs to collect overseas information and to support Japanese corporations’ fundraising in the local areas.

JCR-VIS is a CRA in Pakistan, which was established in 1997. Having close relations with Islamic zone centering on Middle East, JCR-VIS makes efforts to develop International Islamic Rating Agency (“IIRA”) headquartered in Bahrain and is disseminating credit rating system in the Islamic countries. Through a minority investment (15%), JCR is acquiring knowledge on Islamic finance and constructing its networks with the Islamic countries. The President of JCR-VIS, Mr. Ahmad, has been serving as chairman of Association of Credit Rating Agencies in Asia (“ACRAA”) since 2014.

JCR-Eurasia Rating is a CRA in Turkey, which was established in 2007. By providing credit ratings, JCR-Eurasia Rating contributes to developments of financial/capital market in Turkey, having an 85% market share in the country. Turkey, being located at the junction between Asia and Europe, is a leading emerging country with population of nearly 80 million and the largest economy in Middle East. Through a minority investment (14.95%), JCR is constructing its network in Turkey. The vice chairman of JCR-Eurasia Rating, Mr. Karagol, serves as a director of Association of Credit Rating Agencies in Asia (“ACRAA”) and European Association of Credit Rating Agencies (“EACRA”).

India, which has population of more than 1.2 billion and is rapidly growing its economy, is garnering attention as an investee country of Japanese corporations' outward foreign direct investments. In cases where a corporation raises funds of more than a certain amount in India, such corporation is required to acquire a credit rating from a local CRA. There are many leading state-owned, conglomerate and other local enterprises in India. With the local financial/capital market still being at a developmental stage, their financing needs in the overseas markets are strong. By making an alliance with CARE Ratings in India, which is one of the leading CRAs in India established in 1993 with credit ratings assigned to nearly 10,000 issuers, JCR is providing information on Japanese and Indian economic and financial conditions and making financing of Japanese and Indian corporations in their counterpart countries more smoothly conducted.

In recent years, Japanese companies, especially in the automobile-related industries, have been eagerly making direct investments in Mexico, a major emerging market country adjacent to the US with a population of more than 120 million. In raising funds in Mexico, especially through issuing bonds, it is essential to solicit a rating using a local scale from the rating agencies widely accepted by the local investors. Interest is also growing among Mexican entities, which have been traditionally into the US market, to tap into the Tokyo market in order to diversify their funding sources and to take advantage of the ultra-low interest rate environment. By making an alliance with HR Ratings in Mexico, the leading CRA in Mexico that was established in 2007 and assigns ratings to more than 370 Mexican entities, JCR is striving to enhance the provision of economic, financial and industrial information on Japan and Mexico and facilitate fund-raising by Japanese companies in Mexico and Mexican entities in Japan.

Malaysia, a major ASEAN country, has been one of Japanese companies’ favorite FDI destinations for long, especially in the Electrical & Electronics (E&E) industries. Malaysia embraces the world’s largest domestic Islamic Sukuk market. MARC, established in 1996, is Malaysia’s domestic credit rating institution. It enjoys a strong reputation in its ratings, including those on Islamic finance and project finance. With MARC, JCR intends to contribute further to the globalization of Japanese companies as well as the Tokyo Financial Market through facilitating Japanese and Malaysian entities’ fundraising in each other’s country.

JCR’s Global Topics

ACRAA-EACRA Second Joint Conference (Jun. 21, 2017)
JCR Participates in ACRAA CEO Forum and Systemic Risk Symposium (Apr. 25, 2017)
JCR Enters into Strategic Alliance with Malaysia’s Rating Agency MARC (Apr. 21, 2017)
Publication of "Asia Credit Rating Guidebook" by ACRAA (Nov. 25, 2016)
JCR’s ECAI status across the entire EU takes effect (Nov. 1, 2016)
Joint Seminar with India’s CARE Ratings in Tokyo(Oct. 20,2016)
Knowledge Sharing at JICA Training on “Bond Market Development in ASEAN Countries (II)” (Oct. 3,2016)
Strategic Alliance with Mexico’s HR Ratings (Aug. 31, 2016)
Seminar on Brazil and Mexico (Apr. 25, 2016)
Knowledge Sharing at the Policy Dialogue between Indonesia and JBIC (Apr. 21, 2016)
Joint Seminar with India’s CARE Ratings (Mar. 30, 2016)
Strategic Alliance with India’s CARE Ratings (Dec. 29, 2015)
Annual Meeting of the Association of Credit Rating Agencies in Asia (ACRAA) (Nov. 23, 2015)
Certified as “Approved Credit Rating Agency” in Thailand (Oct. 30, 2015)
Knowledge Sharing at ACRAA’s Joint Training (Oct. 16, 2015)
Knowledge Sharing at JICA Training on “Bond Market Development in ASEAN Countries (II)” (Oct. 9, 2015)
Seminar on Indonesian Economy and Credit Rating (Aug. 28, 2015)
Asia Credit Rating Forum in Tokyo (Jul. 10, 2015)
Seminar on Taiwan (Jun. 2, 2015)
First ACRAA-EACRA Joint Meeting (Apr. 16, 2015)
Accredited as “Recognized CRA for Non-bank Corporate External Debt Regulation” in Indonesia (Jan. 16, 2015)