NEWS RELEASE May 26, 2020 R&I Affirms AA, Stable: Fukui Prefecture Rating and Investment Information, Inc. (R&I) has announced the following: ISSUER: Fukui Prefecture Issuer Rating: AA, Affirmed Rating Outlook: Stable RATIONALE: In Fukui Prefecture, the construction for extending the Hokuriku Shinkansen line from Kanazawa to Tsuruga is underway in earnest, with the opening scheduled for FY2022 (the year ending March 2023). The expansion of an expressway network including the Chubu Jukan Expressway is also progressing. In the medium term, the upgraded infrastructures will likely attract more visitors and businesses and thereby vitalize and diversify the local economy. In addition to traditional local industries, such as synthetic fiber and eyeglasses, the prefecture is home to leading companies, which enjoy a high global market share in the fields of auto components and electronic parts. Many nuclear power plants located in the Reinan region west of Tsuruga City are an important source of tax revenue. Governor Tatsuji Sugimoto, who took office after winning a split election among conservative candidates in 2019, has been pursuing a thorough hands-on approach and prefectural administration where the residents play the central role. To realize a long-term vision that charts the future in 20 years' time, a five-year action plan starting from FY2020 is underway. The prefecture will promote various measures to enhance its attractiveness and support startups, among others. Although large investments will continue mainly in the construction of the Hokuriku Shinkansen line, the prefecture intends to control the outstanding balance of prefectural bonds by carefully selecting necessary projects based on a five-year action plan for administrative and fiscal reforms started in FY2019. Fiscal deterioration will thus likely be avoided. Tax revenues are expected to decline for a certain period of time due to stagnant economic activities stemming from the spread of the novel coronavirus. Taking into account the strong credit enhancement based on the local fiscal system, however, R&I believes that the coronavirus issue will have only a limited rating impact. 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: Fukui Prefecture Issuer Rating RATING: AA, Affirmed RATING OUTLOOK: Stable Pref. Bonds No.1 (FY2010) Issue Date Maturity Date Issue Amount (mn) Oct 29, 2010 Oct 29, 2020 JPY 20,000 RATING: AA, Affirmed ■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc. NEWS RELEASE Pref. Bonds No.2 (FY2010) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2011 Apr 23, 2021 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2011) Issue Date Maturity Date Issue Amount (mn) Oct 28, 2011 Oct 28, 2021 JPY 20,000 RATING: AA, Affirmed Pref. Bonds No.3 (FY2011) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2012 Apr 25, 2022 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2012) Issue Date Maturity Date Issue Amount (mn) Oct 26, 2012 Oct 26, 2022 JPY 20,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2012) Issue Date Maturity Date Issue Amount (mn) Dec 21, 2012 Dec 21, 2032 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.4 (FY2012) Issue Date Maturity Date Issue Amount (mn) Apr 26, 2013 Apr 26, 2023 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2013) Issue Date Maturity Date Issue Amount (mn) Jun 21, 2013 Jun 21, 2033 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2013) Issue Date Maturity Date Issue Amount (mn) Oct 25, 2013 Oct 25, 2023 JPY 20,000 RATING: AA, Affirmed Pref. Bonds No.4 (FY2013) Issue Date Maturity Date Issue Amount (mn) Apr 25, 2014 Apr 25, 2024 JPY 10,000 RATING: AA, Affirmed ■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc. NEWS RELEASE Pref. Bonds No.1 (FY2014) Issue Date Maturity Date Issue Amount (mn) Jul 18, 2014 Jul 18, 2034 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2014) Issue Date Maturity Date Issue Amount (mn) Oct 24, 2014 Oct 24, 2024 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.4 (FY2014) Issue Date Maturity Date Issue Amount (mn) Apr 24, 2015 Apr 24, 2025 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2015) Issue Date Maturity Date Issue Amount (mn) Jul 17, 2015 Jul 17, 2035 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2015) Issue Date Maturity Date Issue Amount (mn) Oct 23, 2015 Oct 23, 2025 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.3 (FY2015) Issue Date Maturity Date Issue Amount (mn) Nov 27, 2015 Nov 27, 2020 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.4 (FY2015) Issue Date Maturity Date Issue Amount (mn) Apr 27, 2016 Apr 27, 2026 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2016) Issue Date Maturity Date Issue Amount (mn) Jul 29, 2016 Jul 29, 2036 JPY 8,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2016) Issue Date Maturity Date Issue Amount (mn) Oct 27, 2016 Oct 27, 2026 JPY 10,000 RATING: AA, Affirmed ■Contact : Sales and Marketing Division, Customer Service Dept. TEL.+81-(0)3-6273-7471 E-mail. [email protected] ■Media Contact : Corporate Planning Division (Public Relations) TEL.+81-(0)3-6273-7273 Rating and Investment Information, Inc. TERRACE SQUARE, 3-22 Kanda Nishikicho, Chiyoda-ku, Tokyo 101-0054, Japan https://www.r-i.co.jp Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to https://www.r-i.co.jp/en/docs/policy/site.html. © Rating and Investment Information, Inc. NEWS RELEASE Pref. Bonds No.3 (FY2016) Issue Date Maturity Date Issue Amount (mn) Nov 30, 2016 Sep 20, 2046 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.4 (FY2016) Issue Date Maturity Date Issue Amount (mn) Apr 27, 2017 Apr 27, 2027 JPY 10,000 RATING: AA, Affirmed Pref. Bonds No.1 (FY2017) Issue Date Maturity Date Issue Amount (mn) Jul 26, 2017 Jul 24, 2037 JPY 5,000 RATING: AA, Affirmed Pref. Bonds No.2 (FY2017) Issue Date Maturity Date Issue Amount (mn) Jul 26, 2017 Jun 20, 2047 JPY 5,000 RATING: AA, Affirmed Pref.