JCR has affirmed the AAAp/Stable rating on senior debts of the issuer.

Issuer: East Japan Railway Company (9020)
Senior debts: AAAp/Stable

<Rationale>
East Japan Railway Company's financial performance for FY 2009 ending March 31, 2010 is expected to be affected by weak economic conditions, swine flu and the start of a system of capping expressway tolls at 1,000 yen, especially its transportation business, and its revenue and profit are forecast to decline in the period. However JCR considers that the Company can maintain its high cash generating ability over the medium term on the strength of its unrivalled railroad network (existing railroad lines) in the Tokyo metropolitan area, its Shinkansen network which more people utilize rather than airplanes, increasing commercial facilities at stations (utilization of the assets of good quality which it holds at stations). The Company has repaid long-term liabilities incurred for purchase of railway facilities regularly. However the pace of a reduction in its long-term liabilities has slowed, as the Company borrowed and raised more funds by issuing bonds to finance its positive safe investments and those for sustainable growth, which have been at a higher level recently. Although the Company plans to make capital investments more positively in its life-style businesses in addition to the safe investments, JCR considers that its financial structure will continue to improve on the back of its high and stable cash generating ability. JCR will watch the progress of its measures listed in its "JR East 2020 Vision-challenge-."