Moody's Investors Service Inc. said Wednesday that when it rates financial institutions affiliated with the Japanese government, it emphasizes the level of commitment the state gives them more than the institutions' own financial health.
In a statement, the U.S. credit-rating agency said it takes special note of the "policy priority structure" of Japanese government decision-makers when assessing such institutions.
Moody's said "the more supervision and control the government has" over them, the greater the likelihood they will receive government assistance in times of need.
It also said ratings can be affected if the prospect of privatization or any other major organizational change increases.
Moody's currently assigns the Aa2 rating to the Development Bank of Japan and the Japan Bank for International Cooperation, and rates Shoko Chukin Bank at Aa3.
Mutsuo Suzuki, senior vice president at Moody's Tokyo office, said in the statement, "Analysis of privatization, substitution and dissolution prospects for each Japanese government financial institution is also very important.
"Should those risks materialize, they would directly change determinant credit fundamentals and require a change of analytical focus from policy franchise value to assessment of its business and financial fundamentals."