Research: Rating Action: Moody’s Assigns Final Rating to Ritz Series 67 Backed by Residential Mortgages


Approximately JPY 6.2 billion of debt securities affected

Tokyo, June 29, 2022 — Moody’s SF Japan KK has assigned a final rating to the following transaction.

The full rating action is as follows:

Transaction Name: Ritz Series 67

Category, issue amount, expected dividend, rating

Mortgage beneficial interest, JPY 6,152,520,000, fixed, A1 (sf)

Closing date: June 29, 2022

Final Maturity Date: June 30, 2059

Underlying assets: residential mortgages insured by the Japan Housing Finance Agency (“JHF”)

Credit and liquidity support provider: JHF

Housing Loan Insurance Subscriber: JHF

Arranger/Underwriter: SMBC Nikko Securities Inc.


The seller entrusts a pool of its residential mortgages together with cash to the estate trustee, and in return receives mortgage beneficial interest and reserve beneficial interest. The seller sells the mortgage beneficial interests to the investors, but holds the reserve beneficial interests.

The seller acts as the initial service agent, under the service agreement with the asset trustee. The Back-up Servicer/Special Servicer is appointed under the Back-up Servicing Agreement/Special Servicing Agreement with the Asset Trustee.

JHF (issuer rating: A1) and the Asset Trustee enter into a credit support and liquidity support agreement pursuant to which JHF is required to guarantee principal and scheduled dividend payments on mortgage beneficial interest.

The Mortgage Beneficial Interests are redeemed based on collections from the pool on a monthly, pass-through basis.

Moody’s considers the vendor and special repairer to be sufficiently capable of servicing the pool, given their commercial experience and servicing operations.

The main methodology used in this rating was “Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts (Japanese)” published in June 2017 and available at You can also visit the Scoring Methodologies page at for a copy of this methodology.

Please note that an Invitation to Comment has been issued in which Moody’s seeks market comment on potential revisions to one or more of the methodologies used to determine these credit ratings. If the revised methodologies are implemented as proposed, it is currently not expected that the credit ratings referenced in this press release will be affected.

The request for feedback can be found on the scoring methodologies page on

Factors that would lead to a rating increase or decrease:

The main factor that could lead to a rating upgrade is a rating upgrade from the JHF. The main factor that can lead to a rating downgrade is a downgrade in the JHF rating.

Moody’s assigns the rating solely on the basis of JHF’s ability to fulfill its collateral obligation under a credit and liquidity support agreement.

Moody’s did not use any models in its analysis and therefore did not perform a sensitivity analysis.


For details on key rating assumptions and Moody’s sensitivity analysis, see the Methodological Assumptions and Sensitivity to Assumptions sections in the Disclosure Form. Rating symbols and definitions from Moody’s are available at

Moody’s did not use any models, loss or cash flow analysis, in its analysis.

Moody’s did not use any stress scenario simulations in its analysis.

For ratings issued on a program, series, category/class of debt or security, this announcement provides certain regulatory information regarding each rating of a subsequently issued bond or note of the same series, category/class of debt, security or under a program for which ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a media provider, this announcement provides certain regulatory information relating to the credit rating action on the media provider and each particular credit rating action for securities whose credit ratings are derived from the support provider’s credit rating. For the provisional ratings, this press release provides certain regulatory information relating to the provisional rating assigned, and to a final rating that may be assigned after the final issuance of the debt, in each case where the structure and conditions of the transaction n have not changed prior to the final rating being assigned in a way that would have affected the rating. For more information, please see the issuer/transaction page of the respective issuer at

For all relevant securities or rated entities receiving direct credit support from the lead entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action , the associated regulatory information will be that of the guarantor entity. Exceptions to this approach exist for the following information, if applicable to the jurisdiction: Ancillary services, Information to be provided to the rated entity, Information to be provided by the rated entity.

The rating has been communicated to the rated entity or its designated agent(s) and issued without modification as a result of such communication.

This rating is requested. Please refer to Moody’s Policy for the Designation and Assignment of Unsolicited Credit Ratings available on its website.

The regulatory information contained in this press release applies to the credit rating and, if applicable, the outlook or rating revision relating thereto.

Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis are available at

The worldwide credit rating on this credit rating announcement was issued by one of Moody’s affiliates outside the EU and is approved by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main. -le-Main 60322, Germany, in accordance with Article 4(3) of Regulation (EC) No 1060/2009 on credit rating agencies. Further information on the EU approval status and the Moody’s office that issued the credit rating can be found at

The worldwide credit rating on this credit rating announcement has been issued by one of Moody’s affiliates outside the UK and is approved by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the United Kingdom. . Further information on the UK endorsement status and the Moody’s office that issued the credit rating can be found at

Moody’s SF Japan KK is a registered credit rating agency under the Financial Instruments and Exchanges Act, but not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Accordingly, credit ratings assigned by Moody’s SF Japan KK are FSA registered credit ratings, but are not NRSRO credit ratings.

Please see for any updates on changes to the lead rating analyst and Moody’s legal entity that issued the rating.

Please see the issuer/transaction page at for additional regulatory information for each credit rating.

Kiyomine Sato
Structured Finance Group
Moody’s SF Japan KK
Atago Green Hills Tower Mori 20fl
2-5-1 Atago, Minato-ku
Tokyo, 105-6220
JOURNALISTS: 81 3 5408 4220
Customer service: 81 3 5408 4210

Yusuke Seki
Associate General Manager
Structured Finance Group
JOURNALISTS: 81 3 5408 4220
Customer service: 81 3 5408 4210

Release Office:
Moody’s SF Japan KK
Atago Green Hills Tower Mori 20fl
2-5-1 Atago, Minato-ku
Tokyo, 105-6220
JOURNALISTS: 81 3 5408 4220
Customer service: 81 3 5408 4210


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