For Public Comments on Planned Methodology for Future Flow Securitization

Jun. 02, 2016

Japan Credit Rating Agency, Ltd. (JCR) plans newly to set up credit rating methodology for Future Flow Securitization. JCR presents its draft as follows, for which it welcomes any comments/ opinions.

1. Overview
In a future flow securitization, a company issues a debt instrument whose repayment of principal and interest is secured by payments on future flow receivables. To issue the debt instruments SPV or trust is used as conduit. Such future receivables are expected to be generated in years to come and through its normal course of operations. Considering needs for credit rating of future flow securitization are mounting, JCR has determined to set forth a separate rating methodology for it as shown in the following Draft for Public Comment.

2. Next Steps
JCR wishes to invite public comments on the draft methodology. Comments are welcomed until June 13 at JCR website, by an E-mail form available under "Contact Us." JCR plans to finalize it as credit rating methodology in approximately 2 weeks. This is going to be a new rating methodology and hence JCR expects no existing rating to be reviewed accordingly.

Fumihiro Honda, Yoshinori Namioka and Masayoshi Mizukawa

16s0025

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