Japan Credit Rating Agency (JCR)

What Is the Japan Credit Rating Agency (JCR)

The Japan Credit Rating Agency (JCR) is a Japanese financial services company that gives credit ratings on the corporate debt of Japanese companies and foreign bond issuers. The entity likewise distributes an assortment of financial and economic data and fills in as an aide for counterparty credit risk.

Understanding the Japan Credit Rating Agency (JCR)

The Japan Credit Rating Agency (JCR) is one of Japan's key bond rating agencies and rates by far most of Japanese corporate debt, including asset-backed securities. It gives a number of services, including rating debt securities, everything being equal, as well as distributing financial market, economic, and industry research, and giving data as a service. JCR was established in April 1985.

The JCR has seen numerous financial emergencies since it was established in 1985, including the Japanese real estate bubble, the Asian financial crisis, the 2007-08 financial crisis, the European sovereign debt crisis, and the East Japan Tsunami, and believes itself to be an expert in credit risk analysis.

Throughout the long term, JCR has been extending its global network, building associations with a wide range of countries, and building unions with various organizations, for example, the Association of Credit Rating Agencies in Asia (ACRAA), VIS in Pakistan, CARE Ratings in India, HR Ratings in Mexico, and MARC in Malaysia.

Obligations of the Japan Credit Rating Agency (JCR)

JCR gives rating guidance to more than 60% of around 1,000 publicly rated issuers in Japan. Likewise, JCR gives rating coverage to more than 70% of the financial industry in Japan and is additionally prevailing in the medical and instructive sectors.

JCR has answered globalization and bond issuers' and financial backers' demand for international rating agencies. Its ratings are utilized in major overseas markets like the U.S., Europe, Turkey, Hong Kong, Indonesia, and Thailand, and it has assigned credit ratings for in excess of 200 foreign issuers. The JCR was formally registered in the U.S. as a Nationally Recognized Statistical Rating Organization in 2007 and was certified in the European Union in 2011.

A portion of the extra services that JCR accommodates its clients incorporate networking, private credit assessment, credit risk assessment modeling, green and social financial evaluation, workshops and training, economy and industry data, and research and information sharing.

The company additionally gives subtleties on its rating approaches, specifying its all processes and policy on its website. It breaks down its rating philosophies into five distinct gatherings, which are corporates, financial institutions, the public sector, structured finance, and sovereigns and supranationals.

Japan Credit Rating Agency (JCR) Rating Scales

JCR has two rating scales that it uses to rate debt issuances: a long-term rating scale and a short-term rating scale. The long-term rating scale is like that of the rating scales utilized by western credit rating agencies, like S&P and Moody's.

The long-term rating scale goes from AAA to D, with AAA implying the highest level of quality and D meaning default. For the rating images among AA and B, a plus or minus might be connected to demonstrate the issuers standing inside that rating.

JCR's short-term rating scale goes from J-1 to J-3, and below that there are two additional ratings: NJ and D. D in this occurrence additionally show default while J-1 is the highest level of quality.

Features

JCR utilizes two rating scales; one long term and one short term, with the long-term rating scale working in much the same way to those of S&P's and Moody's.
JCR has been growing its global network, making partnerships with foreign credit rating agencies as well as being approved as a credit rating agency in various countries.
JCR likewise gives rating guidance on north of 200 foreign issuers.
As well as giving rating guidance, JCR is a source of economic and financial research, which it distributes routinely.
The Japan Credit Rating Agency (JCR) is Japan's primary credit rating agency, giving ratings on corporate and financial bond issuers in Japan.
JCR was authoritatively registered in the U.S. as a Nationally Recognized Statistical Rating Organization in 2007 and was certified in the European Union in 2011.
JCR gives rating guidance to more than 60% of Japan's 1,000 publicly rated corporate issuers and more than 70% of its financial industry.