Impact Of Japan's Reorganization Of Public Financial Institutions Nov 05
- ID: 2049677
- November 2005
- Region: Japan
- Standard & Poors
TOKYO (Standard & Poor's) Nov. 25, 2005 Standard & Poor's Ratings Services said today that the agreement reached by Japan's government to consolidate public financial institutions could have positive implications on Japan's sovereign rating (AA-/Stable/A-1+). On Nov. 22, 2005, the government and Liberal Democratic Party (LDP) agreed on a plan to consolidate several government-supported financial institutions into two or three. The plan includes converting some institutions into independent administrative agencies, such as Government Housing Loan Corp., and will focus these agencies operations more narrowly. "While reaching a final agreement will be a tough battle, the current plan will generally have a positive impact on the rating on the Japanese sovereign, since it is expected to constrain the extraordinary budget and...
Companies mentioned in this report are:
- Development Bank of Japan Inc.
- Japan Bank for International Cooperation (Old)
- Japan Finance Corp. for Municipal Enterprises
- Japan Housing Finance Agency
Action: General Comment
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Research type: News
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