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TEXT-S&P Rates Development Bank of Japan's Series 29 And 30 Bonds

(The following was released by the rating agency)

TOKYO (Standard & Poor's) Oct. 10, 2012--Standard & Poor'sRatings Services today assigned its 'A+' debt ratings to the29th and 30th series of domestic unsecured straight bonds issuedby Development Bank of Japan Inc. (DBJ; A+/Negative/A-1) (seelist below).

The rating on DBJ reflects its status as agovernment-related entity (GRE) and a financial institution thatis 100% owned by the government, as well as our assessment ofits stand-alone credit profile (SACP). Because of its criticalpolicy role, we believe DBJ has an "extremely high" likelihoodof receiving extraordinary support from the government of Japan(AA-/Negative/A-1+). Based on its policy role, DBJ has a trackrecord of extending investment and financing expertise in areassuch as community development and revitalization, environmentalconservation, and technological innovation. The bank has alsoinstituted emergency measures to deal with the global financialand economic crisis, and disasters including the Great EastJapan Earthquake, which are difficult for private financialinstitutions to manage. In DBJ's implementation of emergencymeasures, it has received financial support from the government,such as liquidity support and additional capital. However, therating is constrained by potential weakening of DBJ'srelationship with the government over the long term under thecurrent full privatization plan. Our assessment of the SACPreflects DBJ's good capitalization and limited market risk.However, DBJ's credit risk concentration to large-lot borrowersfollowing the Great East Japan Earthquake, which struck March11, 2011, has risen relative to its earnings and capital, whichwe view as a risk factor. Another risk factor is the worseningfinancial performance of a large-lot borrower that has beenreceiving government support, in our view.

RATING LIST Ratings Assigned Issue Rating Series 29 JPY20.0 bil., 0.176%, due Dec. 18, 2015 A+ Series 30 JPY40.0 bil., 0.280%, due Dec. 20, 2017 A+ RELATED CRITERIA AND RESEARCH Banks: Rating Methodology And Assumptions, Nov. 9, 2011

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Keywords: MARKETS RATINGS DEVELOPMENTBANKOFJAPAN

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