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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
Japan
Credit Rating Agency registered as per Financial Instruments and Exchange Act

External Credit Assessment Institution (ECAI)
US 1/
Nationally Recognized Statistical Rating Organization (NRSRO) registered as per Securities Exchange Act of 1934
EU 2/
Credit Rating Agency certified as per the EU regulations on CRAs
2/
External Credit Assessment Institution (ECAI)
Turkey
External Credit Assessment Institution (ECAI)
Hong Kong
External Credit Assessment Institution (ECAI)
Thailand 3/
Foreign Credit Rating Agency approved by Thai SEC
Indonesia 4/
Credit Rating Agency accredited by Bank Indonesia (BI) for BI Regulation on non-bank corporate external debt management

1/ Except for Asset-Backed Securities.

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

3/ 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.

4/ 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 Global Network

JCR has published credit ratings on more than 200 foreign issuers, including sovereigns, international organizations, corporates, and financial institutions. As Japanese investors are increasingly expanding their foreign investment portfolio and Japanese companies are accelerating their business developments overseas, JCR is expanding its alliances with foreign CRAs so as to facilitate information gathering and to support Japanese companies’ overseas fundraising.

ACRAA, the association of credit rating agencies (CRAs) in Asia, was established in 2001 to promote mutual cooperation among members for the purpose of improving rating quality. In emerging market countries in Asia, rating scales vary from country to country. However, challenges are common in such areas as objectiveness and transparency of rating process, and quality of analysis and rating. In order to jointly address those issues, ACRAA has been establishing and disseminating the best practices in rating process and conducting joint training workshops. In recent years, it has also enhanced its roles to collect information on the global regulatory framework over CRAs, and to provide information on the bond markets and mandatory rating requirements in Asia. Having served as Chairman since its establishment till 2013, JCR has been leading the activities of ACRAA. For details, click here.

JCR-VIS is a CRA established in Pakistan in 1997. Having strong links with Islamic countries in the Middle East, it is now putting efforts to develop the International Islamic Rating Agency (“IIRA”) in Bahrain. It also endeavors to establish credit rating systems in various Islamic countries. Through cooperation with JCR-VIS including equity investment at 15%, JCR aims to acquire knowledge on Islamic finance and expand its network with Islamic countries. The President of JCR-VIS, Mr. Faheem Ahmad, has been serving as Chairman of the Association of Credit Rating Agencies in Asia (“ACRAA”) since 2014.

JCR Eurasia Rating is a CRA established in Turkey in 2007. With the provision of credit rating services, JCR Eurasia Rating is contributing to the development of financial and capital markets in Turkey where it now has 85% market share. Turkey, located at the junction between Asia and Europe, is a leading emerging country with a population of nearly 80 million. It is the largest economy in the Middle East. Through cooperation with JCR Eurasia Rating including equity investment at 14.95%, JCR aims to expand its network in Turkey. Vice Chairman of JCR Eurasia Rating, Mr. Rafi Karagol, serves as a board member at both the Association of Credit Rating Agencies in Asia (“ACRAA”) and the European Association of Credit Rating Agencies (“EACRA”).

  • Accuratio Ratings in Peru

Accuratio Ratings is a CRA established in Peru in 2015. Peru is located in South America with a population of 31 million (as of 2016). It is rich with mineral resources such as copper. In recent years, under the solid macroeconomic management, the economy has grown steadily and its GDP per capita reached US$6,201 in 2016. JCR assigns “A-” with stable outlook for the foreign currency long-term issuer rating on Peru. In Peru, the local regulation requires public bond issuers to solicit multiple ratings from local rating agencies. Peru is also promoting to integrate its securities markets with Chile, Colombia and Mexico, called “Mercado Integrado Latinoamericano (MILA)”. Through cooperation with Accuratio Rating including equity investment at 15%, JCR aims to (1) enhance its information sources on Latin America’s economy, finance, industry and corporates; (2) support Japanese foreign direct investors to solicit local rating; (3) facilitate Latin American entities to raise funds in international capital markets; and (4) expand JCR’s international network of rating agencies.

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

JCR Signs Business Cooperation Agreement with CRA in Peru (Sep. 13, 2017)
JCR organized Seminar on“European Financial Institutions’ TLAC and Subordinated Instruments” (Sep. 5, 2017)
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)