TOKYO, Feb. 13 /PRNewswire/ -- Standard & Poor's (S&P), a leading global
provider of independent financial information and analytical services, today
assigned its 'A+/A-1' credit ratings to Japan Real Estate Investment Corp.
(JRE). The outlook is stable. The announcement marks the first rating of a
REIT in Japan.
JRE is among the first J-REITs to be listed on the Tokyo Stock Exchange.
The company's sponsors, Mitsubishi Estate Co. Ltd., Tokio Marine & Fire
Insurance Co. Ltd., and Dai-Ichi Mutual Life Insurance Co., own a combined 14%
of JRE and 100% of JREA, the recently formed asset manager of JRE. As of the
end of November 2001, JRE had a JPY124.4 billion (S&P underwriting value)
nationwide portfolio of 21 office properties.
An S&P issuer rating assigned to a J-REIT corporation represents a current
opinion of the overall ability of the J-REIT corporation to repay its debt,
based on the entity's financial stability and profitability, backed by the
quality of its real estate portfolio. The rating takes into consideration
factors such as the corporation's business environment, and qualitative
factors with regard to its management and financial soundness. In the process
of assigning a rating, Standard & Poor's focuses on two main areas: the
corporation's business profile and its financial profile.
"The rating is based upon S&P Japan's sophisticated criteria and credit
analysis that integrates a corporate ratings approach, with a real estate
asset specific analysis to assign issuer credit ratings to J-REITs," said
Andrea Bryan, director, regional practice leader, structured finance ratings.
"This approach highlights our commitment to Japan to develop tailored
analytical solutions as new structures are developed."
"As we expand our credit analysis products and services to meet the demand
for more sophisticated securitization transactions we are building on a strong
reputation in the market based on our commitment to working closely with
originators and investors," said Yu-Tsung Chang, managing director of S&P
ratings in Japan. "The JRE rating reflects a growing demand for S&P's
analytical services in Japan and demonstrates that S&P is leading the way in
facilitating new innovative financing structures for the new asset classes
emerging in Japan's changing investment environment."
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
Tomoyoshi Omuro, Tokyo, +81-3-3593-8584, Roko
Izawa, Tokyo, +81-3-3593-8674, Andrea Bryan, Tokyo,
+81-3-3593-8657, or Elizabeth Campbell, New York,
+1-212-438-2415, all of Standard & Poor's Ratings Services
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