JCR calculated the average financial indicators for each rating category, using financial data of the corporations to which JCR assigns ratings (including 'p' ratings and ratings under Credit Monitor), as a part of objective validation of the adequacy of JCR's ratings. This report is the updated 2015 version of the last "Financial Indicators by Rating Range 2014" released on November 21, 2014. The ratings are determined not only by quantitative but also qualitative assessment, and the consistency in the relationship between the grades of JCR's ratings and the financial indicators has been reaffirmed by these statistical tests, as should be for the base of credit rating. JCR calculates the level of financials as herewith presented for the use to check individual ratings. Since JCR sees other financial indicators, qualitative assessment and prospects for future developments as well in the actual ratings, they do not necessarily match the ratings that are herewith arithmetically assigned, even though the rated corporations may satisfy the level of financial averages given in this report. Nonetheless, JCR releases this report as a part of its efforts to improve its rating transparency.
Time Period for Data Collection
Two time periods are adopted for data collection: "the most recent FY" (from April 2014 to March 2015) and "the most recent 5 FYs" (from April 2010 to March 2015). (The previous two time periods are from April 2013 to March 2014 for the most recent FY and are from April 2009 to March 2014 for the most recent 5 FYs.)
Data Used
Data for Japanese industrial corporations (excluding financial institutions, electric power and gas companies, air transport, agriculture and forestry, fishery, and mining industries) subject to JCR's ratings were used. JCR related the financial indicators to the JCR's ratings that were assigned when 5 months have passed since the end of the fiscal year (for example, FY ended March 2015 referenced to JCR's rating as of August 31, 2015). As a result, the number of corporations subject to data collection from April 2010 to March 2015 totaled 969 for manufacturing industry (190 for the most recent FY) and totaled 841 for non-manufacturing industry (160 for the most recent FY).
