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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's Ratings Services today assigned its 'A+' debt ratings to the 29th and 30th series of domestic unsecured straight bonds issued by Development Bank of Japan Inc. (DBJ; A+/Negative/A-1) (see list below).

The rating on DBJ reflects its status as a government-related entity (GRE) and a financial institution that is 100% owned by the government, as well as our assessment of its stand-alone credit profile (SACP). Because of its critical policy role, we believe DBJ has an "extremely high" likelihood of receiving extraordinary support from the government of Japan (AA-/Negative/A-1+). Based on its policy role, DBJ has a track record of extending investment and financing expertise in areas such as community development and revitalization, environmental conservation, and technological innovation. The bank has also instituted emergency measures to deal with the global financial and economic crisis, and disasters including the Great East Japan Earthquake, which are difficult for private financial institutions to manage. In DBJ's implementation of emergency measures, it has received financial support from the government, such as liquidity support and additional capital. However, the rating is constrained by potential weakening of DBJ's relationship with the government over the long term under the current full privatization plan. Our assessment of the SACP reflects DBJ's good capitalization and limited market risk. However, DBJ's credit risk concentration to large-lot borrowers following the Great East Japan Earthquake, which struck March 11, 2011, has risen relative to its earnings and capital, which we view as a risk factor. Another risk factor is the worsening financial performance of a large-lot borrower that has been receiving 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