R&I Affirms AA, Negative: Fukui Prefecture Oct 17, 2017 Rating and Investment Information, Inc. (R&I) has announced the following: ISSUER: RATIONALE: Fukui Prefecture Issuer Rating: Rating Outlook: Negative In Fukui Prefecture, the construction for extending the Hokuriku Shinkansen line to Tsuruga is underway in earnest, and the expansion of an expressway network including the Chubu Jukan Expressway is progressing. The upgraded infrastructures will likely attract more businesses and tourists and thereby vitalize and diversify the local economy. Thanks to robust production activities in traditional local industries, such as textile and eyeglasses, and in manufacturing industries, such as auto components and electronic devices, indicators for the prefectural economy and tax revenues, which mainly consist of corporate inhabitant tax and enterprise tax, are showing solid trends. All nuclear reactors in the prefecture had been suspended for a prolonged period, but two reactors of Takahama Power Station resumed operation in 2017. While there are moves toward a society without reliance on nuclear power, the conversion of the energy mix is expected to proceed at a gradual pace, and Fukui Prefecture is making efforts to minimize the impact on the local economy by, for example, implementing various initiatives for industrial transformation. Furthermore, the prefecture took measures to secure tax revenues regardless of whether a nuclear reactor is being operated, suspended or decommissioned. Accordingly, nuclear power-related revenues have not fluctuated widely. As a result of promoting an action plan for administrative and fiscal reforms under the leadership of Governor Issei Nishikawa, fiscal consolidation has moved forward. The outstanding balance of all prefecture bonds including temporary fiscal measure bonds, which will be refunded in the form of local tax allocation, has been decreasing since FY2012 (the year ended March 2013). The prefecture is thus well prepared for a cost burden arising from Shinkansen line construction. Even with future large investments taken into account, fiscal deterioration will likely be avoided. The Rating Outlook is Negative, reflecting the Negative Rating Outlook for Japan's sovereign. The primary rating methodology applied to this rating is provided at "R&I's Analytical Approach to Local Governments". The methodology is available at the web site listed below, together with other rating methodologies that are taken into consideration when assigning the rating. https://www.r-i.co.jp/en/rating/about/rating_method.html R&I RATINGS: ISSUER: RATING OUTLOOK: Fukui Prefecture Issuer Rating Negative
Pref. Bonds No.1 (FY2009) Issue Date Maturity Date Issue Amount (mn) Dec 25, 2009 Dec 25, 2019 JPY 10,000 Pref. Bonds No.1 (FY2010) Issue Date Maturity Date Issue Amount (mn) Oct 29, 2010 Oct 29, 2020 JPY 20,000 Pref. Bonds No.2 (FY2010) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2011 Apr 23, 2021 JPY 10,000 Pref. Bonds No.1 (FY2011) Issue Date Maturity Date Issue Amount (mn) Oct 28, 2011 Oct 28, 2021 JPY 20,000 Pref. Bonds No.3 (FY2011) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2012 Apr 25, 2022 JPY 10,000 Pref. Bonds No.1 (FY2012) Issue Date Maturity Date Issue Amount (mn) Oct 26, 2012 Oct 26, 2022 JPY 20,000 Pref. Bonds No.2 (FY2012) Issue Date Maturity Date Issue Amount (mn) Dec 21, 2012 Dec 21, 2032 JPY 5,000 Pref. Bonds No.3 (FY2012) Issue Date Maturity Date Issue Amount (mn) Mar 29, 2013 Mar 29, 2018 JPY 5,000 Pref. Bonds No.4 (FY2012) Issue Date Maturity Date Issue Amount (mn) Apr 26, 2013 Apr 26, 2023 JPY 10,000
Pref. Bonds No.1 (FY2013) Issue Date Maturity Date Issue Amount (mn) Jun 21, 2013 Jun 21, 2033 JPY 5,000 Pref. Bonds No.2 (FY2013) Issue Date Maturity Date Issue Amount (mn) Oct 25, 2013 Oct 25, 2023 JPY 20,000 Pref. Bonds No.3 (FY2013) Issue Date Maturity Date Issue Amount (mn) Mar 28, 2014 Mar 28, 2019 JPY 5,000 Pref. Bonds No.4 (FY2013) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2014 Apr 25, 2024 JPY 10,000 Pref. Bonds No.1 (FY2014) Issue Date Maturity Date Issue Amount (mn) Jul 18, 2014 Jul 18, 2034 JPY 5,000 Pref. Bonds No.2 (FY2014) Issue Date Maturity Date Issue Amount (mn) Oct 24, 2014 Oct 24, 2024 JPY 10,000 Pref. Bonds No.3 (FY2014) Issue Date Maturity Date Issue Amount (mn) Nov 28, 2014 Nov 28, 2019 JPY 5,000 Pref. Bonds No.4 (FY2014) Issue Date Maturity Date Issue Amount (mn) Apr 24, 2015 Apr 24, 2025 JPY 10,000 Pref. Bonds No.1 (FY2015) Issue Date Maturity Date Issue Amount (mn) Jul 17, 2015 Jul 17, 2035 JPY 5,000
Pref. Bonds No.2 (FY2015) Issue Date Maturity Date Issue Amount (mn) Oct 23, 2015 Oct 23, 2025 JPY 10,000 Pref. Bonds No.3 (FY2015) Issue Date Maturity Date Issue Amount (mn) Nov 27, 2015 Nov 27, 2020 JPY 5,000 Pref. Bonds No.4 (FY2015) Issue Date Maturity Date Issue Amount (mn) Apr 27, 2016 Apr 27, 2026 JPY 10,000 Pref. Bonds No.1 (FY2016) Issue Date Maturity Date Issue Amount (mn) Jul 29, 2016 Jul 29, 2036 JPY 8,000 Pref. Bonds No.2 (FY2016) Issue Date Maturity Date Issue Amount (mn) Oct 27, 2016 Oct 27, 2026 JPY 10,000 Pref. Bonds No.3 (FY2016) Issue Date Maturity Date Issue Amount (mn) Nov 30, 2016 Sep 20, 2046 JPY 5,000 Pref. Bonds No.4 (FY2016) Issue Date Maturity Date Issue Amount (mn) Apr 27, 2017 Apr 27, 2027 JPY 10,000 Pref. Bonds No.1 (FY2017) Issue Date Maturity Date Issue Amount (mn) Jul 26, 2017 Jul 24, 2037 JPY 5,000 Pref. Bonds No.2 (FY2017) Issue Date Maturity Date Issue Amount (mn) Jul 26, 2017 Jun 20, 2047 JPY 5,000
Pref. Bonds No.3 (FY2017) Issue Date Maturity Date Issue Amount (mn) Oct 27, 2017 Oct 27, 2027 JPY 10,000