TOKYO (S&P Global Ratings) Jan. 7, 2022--S&P Global Ratings today said that Japan's securitization market appears generally equipped to cope with pandemic year three. However, risks will linger until the global crisis subsides.
That was in a report published today, titled "Japan Structured Finance Outlook: Coexisting With COVID."
"Assets backing owner-occupied housing loan receivables and condominium investment loan receivables will likely perform stably in 2022," said Hiroshi Sonoda, a director at S&P Global Ratings in Japan. "The same goes for consumer receivables asset-backed securities (ABS) and corporate receivables ABS. However, we expect somewhat negative performances for apartment loan residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS)."
The generally stable outlook is in line with our assumptions on the broader Japanese economy. "We expect Japan's economy to grow in line with a moderate recovery in economic activity and the unemployment rate to remain around 2.5% in 2022," Sonoda said.
We consider the assets underlying RMBS, ABS, and CMBS to be representative asset classes of Japan's securitization market. In this report, we discuss our views on the performance outlooks for Japanese RMBS, ABS, and CMBS deals in 2022.
This report does not constitute a rating action.
The report is available to subscribers of RatingsDirect at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
| Primary Credit Analyst: | Hiroshi Sonoda, Tokyo (81) 3-4550-8474; hiroshi.sonoda@spglobal.com |
| Secondary Contacts: | Toshiaki Shimizu, Tokyo + 81 3 4550 8302; toshiaki.shimizu@spglobal.com |
| Yuji Hashimoto, Tokyo + 81 3 4550 8275; yuji.hashimoto@spglobal.com |
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