JCR Received Certification for a Credit Rating Agency under EU Regulations on Credit Rating Agencies

Jan. 12, 2011

Japan Credit Rating Agency, Ltd. (JCR) received certification* for a credit rating agency under the European Union (EU) regulations on credit rating agencies on January 11, 2011.

Now JCR's ratings have become certified to be used by credit institutions, investment firms, insurance undertakings, institusions for occupational retirement provision, etc. inside the EU for regulatory purposes. In addition, JCR's ratings shall be described in prospectuses as credit ratings by a credit rating agency certified by the EU.

JCR has been officially recognized to date by the Financial Supervisory Authorities of four countries of the EU (France, Belgium, Luxembourg, and Germany) as an eligible External Credit Assessment Institution (ECAI) for the regulatory purposes of using its ratings to determine the risk weights to evaluate bank exposure under the BASEL II Framework. With being certified by the EU now, JCR's status as an eligible ECAI in the four countries shall also be maintained continuously.

JCR shall continuously provide a wider range of rating information to the market participants, including issuers as well as investors, and shall perform a positive role for further development of financial markets.

*Certification enables the use of credit ratings, which are issued by credit rating agencies outside the EU, in the EU for regulatory purposes. Credit rating agencies inside the EU should be subject to registration for the similar endorsement.

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