Regulatory Affairs
In Japan
JCR was registered as a "Credit Rating Agency" with the Financial Services Agency in September 2010.
The registration enables financial instruments business operators, such as securities companies, investment advisory companies, to provide their customers with JCR’s credit ratings on their reports, without obligation of additional explanations.
- Disclosure pursuant to Financial Instruments and Exchange Act
- Disclosure to assess the appropriateness of the credit ratings of asset securitization products
In the United States
JCR was registered as an "NRSRO (Nationally Recognized Statistical Rating Organization)" with the U. S. Securities and Exchange Commission in September 2007.
The registration enables financial institutions in the U.S. to use JCR’s credit ratings for the regulatory purposes.
JCR maintains its registration with respect to the following four of five classes for NRSRO.
- Financial institutions, brokers and dealers
- Insurance Companies
- Corporate Issuers
- Issuers of government securities, municipal securities and foreign government securities
※JCR withdrew the registration with respect to the class of Asset-Backed Securities on December 2, 2010.
In the European Union (EU)
JCR received Certification* for a Credit Rating Agency under EU Regulations on Credit Rating Agencies in January 2011.
The certification enables credit institutions, etc. inside the EU to use JCR's ratings for the regulatory purposes.
* Certification enables the use of credit ratings, that are issued by credit rating agencies in any country other than the EU, and that are related to entities and financial instruments in any country other than the EU, in the EU for regulatory purposes.
In the United Kingdom (UK)
JCR received Certification* for a Credit Rating Agency under the UK Regulations on Credit Rating Agencies in January 2021.
The certification enables credit institutions, etc. inside the UK to use JCR's ratings for the regulatory purposes.
* Certification enables the use of credit ratings, that are issued by credit rating agencies in any country other than the UK, and that are related to entities and financial instruments in any country other than the UK, in the UK for regulatory purposes.
In Indonesia
JCR was accredited by the central bank of Indonesia as a recognized credit rating agency under the “Bank Indonesia Regulation on Application of Prudence Principle in Non-bank Corporate External-debt Management”, in January 2015.
As a result, from January 2016, companies in Indonesia that have “BB-” or above credit ratings from JCR fulfil the above regulation and can make new external borrowings. Subsidiaries in Indonesia whose parents have “BB-” or above credit ratings from JCR also fulfil the regulation and can borrow either from their parent companies or with their parents’ guarantee.
In Thailand
JCR was certified by the Office of the Securities and Exchange Commission of Thailand as an “approved credit rating agency established under a foreign law” as per the Notification of the Office of the Securities and Exchange Commission SorChor. 7/2555, in October 2015.
As a result, JCR’s ratings can be used in Thailand as the ratings on the bonds issued in Thailand by Japanese subsidiaries in Thailand, the ratings on the debt securities issued by a juristic person established under the Thai law, denominated in a foreign currency issued and offered for sale in Thailand, or the ratings on the bonds issued in Thailand by Japanese companies or Japanese government agencies, etc.
About ECAI (External Credit Assessment Institutions)
JCR is recognized as an eligible ECAI not only in Japan but also in the EU and the UK*, Turkey and Hong Kong. With the recognition as an eligible ECAI, JCR's ratings are eligible to be utilized by banks having their headquarters in Japan, the EU and the UK, Turkey and Hong Kong for the purposes of calculating capital ratios (credit risk weight based on a standardized approach) under the BIS regulations.
* In the EU and the UK, only JCR's ratings to the entities established or the financial instruments issued in the third country are eligible to be utilized.
