Japan Credit Rating Agency (JCR)

What it is

The Japan Credit Rating Agency (JCR) is a Japanese credit ratings provider that evaluates corporate, financial and public-sector debt. It publishes economic and financial research, offers data services, and supplies credit-risk guidance for domestic and foreign issuers.

Key takeaways

• JCR is one of Japan’s primary credit rating agencies, covering a large share of domestic issuers.
• It rates over 60% of Japan’s ~1,000 publicly rated corporate issuers and more than 70% of the financial industry.
• JCR has rated credit for 200+ foreign issuers and expanded its global footprint through partnerships and regulatory recognitions.
• It was registered as an NRSRO in the U.S. in 2007 and certified in the EU in 2011.
• JCR uses two rating scales: a long-term scale (AAA to D) and a short-term scale (J-1 to J-3, plus NJ and D).

History and experience

Founded in April 1985, JCR has operated through multiple domestic and global financial shocks, including:
* the Japanese real estate bubble collapse
the Asian financial crisis
the 2007–08 global financial crisis
the European sovereign debt crisis
the East Japan tsunami

This history informs its credit-risk analysis and methodology development.

Coverage and responsibilities

JCR’s core responsibilities include:
* Assigning credit ratings for corporate, financial, public-sector and structured finance instruments.
Publishing economic, industry and market research.
Providing data services and credit-risk models.
Offering advisory and training services (seminars, private credit assessments, credit-risk estimation modeling).
Assessing green and social finance instruments.

JCR publicly documents its rating methodologies and policies across issuer types.

Rating scales and symbols

JCR uses two primary scales:

Long-term scale (comparable to major western agencies)
* AAA (highest quality) down to D (default)
* Plus/minus modifiers may be attached between AA and B to indicate relative standing

Short-term scale
* J-1 (highest short-term quality) to J-3
* NJ (not prime/other) and D (default)

Methodology groups

JCR organizes its methodologies into five main groups:
* Corporates
Financial institutions
Public sector
Structured finance
Sovereigns and supranationals

Global network and recognition

JCR has pursued international partnerships and approvals to serve global markets. It has alliances with regional agencies and credit-rating organizations across Asia, Latin America and beyond, and its ratings are used in markets including the U.S., Europe, Hong Kong, Indonesia and Thailand.

Role in the ratings ecosystem

JCR is a major domestic rating provider with significant penetration in Japan’s corporate and financial sectors. Its combination of local market knowledge, documented methodologies, international registrations and partnerships positions it as a recognized participant in the global credit-ratings landscape.