- Global Activities
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 as a Global Rating Agency
In the midst of progressive financial and economic globalization, JCR is undertaking to make its ratings be directly useable globally. JCR is certified as a qualified CRA by the regulatory authorities in the major markets such as the U.S., Europe and Asia.
- Hong Kong
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
- Global Activities
- Association of Credit Rating Agencies in Asia (ACRAA)