S&P Global Ratings has assigned its preliminary 'AAA (sf)' rating to Japan Housing Finance Agency's (JHF) ¥55.1 billion series 199 fixed-rate residential mortgage-secured pass-through notes and beneficiary certificates (subsequent to a trigger event). Our preliminary rating reflects our opinion on the likelihood of the full and timely payment of interest, or interest distribution in the case of the beneficiary certificates, allowing for a three-month grace period, and the ultimate repayment of principal by the transaction's legal final maturity date. Our preliminary rating primarily reflects the following: We assume a foreclosure frequency for the loan receivables in the notes' underlying asset pool of about 33.4% under a stress level commensurate with our 'AAA' rating and about 3.7% under a stress level