Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Correction to text, February 12, 2009 Release: Moody's places Manulife's ratings on review for downgrade

19 Feb 2009

Approximately C$5.6 Billion of securities affected

Toronto, February 19, 2009 -- Correction to February 12, 2009 press release: included affirmation of P-1 short-term rating of John Hancock Financial Services, Inc. (JHFS); added senior unsecured and surplus note ratings of John Hancock Life Insurance Company and short-term rating of JHFS in the debt list.

Revised release follows:

Moody's Investors Service placed the Aa1 insurance financial strength (IFS) ratings of Manulife Financial Corporation's (Manulife's; TSE: MFC) subsidiaries and affiliated debt ratings on review for possible downgrade. These subsidiaries include Manufacturers Life Insurance Company (MLI), John Hancock Life Insurance Company (JHLICo), and John Hancock Life Insurance Company (USA) (JHUSA). Moody's said any downgrade would likely be limited to one notch. In a related action, Moody's affirmed the P-1 short-term rating of John Hancock Financial Services, Inc.

The rating action follows Manulife's fourth quarter earnings release, in which it reported a C$1.9 billion loss for the fourth quarter of 2008 (4Q08), primarily the result of a C$3.5 billion increase in reserves for equity market-related policy guarantees. In 4Q08, Manulife also raised C$4.3 billion of capital -- C$2.3 billion in common equity and C$2 billion in senior debt -- helping the company bolster the capital adequacy at its U.S. and Canadian subsidiaries, which had come under pressure due to rising capital requirements for segregated fund (also known as variable annuity) guarantees. These guarantees are commitments by Manulife to protect their segregated fund policyholders against severe equity market declines.

The ratings review will focus on: (1) the likelihood that Manulife's financial flexibility (as reflected by financial leverage and earnings coverage metrics) will remain at weakened levels in the medium term; (2) the extent to which the company's earnings capacity and capitalization could be hurt by additional investment losses or by further declines in equity markets given its significant variable annuity business; and (3) assessing any management plans to reduce the company's risk profile via additional equity raising initiatives and/or the expansion of its equity risk hedging program.

Moody's Vice President and Senior Credit Officer, Peter Routledge, stated that "today's decision to place Manulife's ratings on review for possible downgrade reflects Moody's view that the Canadian life insurer's financial flexibility and economic capitalization has been weakened by the substantial decline in equity markets in the latter half of 2008." The company's financial leverage and earnings coverage ratios have deteriorated as Manulife raised debt to bolster the capital adequacy at its regulated operating companies in Canada and the U.S., and as group earnings declined as a result of higher reserve requirements on segregated funds and lower fees from equity-market related products. If equity markets remain at their current levels, Moody's believes it unlikely that Manulife's leverage and coverage profile will return to historical norms within the next 18 months. Moreover, if equity markets decline significantly from today's levels before stabilizing, then Manulife's financial flexibility will weaken further.

The rating agency notes that Manulife's regulatory capital ratio, or MCCSR, benefited substantially from an action taken by its regulator in 4Q08. The Office of the Superintendent of Financial Institutions (OSFI) eased capital requirements for longer-dated segregated fund guarantees. While beneficial to Manulife's MCCSR, the company's economic capitalization remains under strain because both the underlying risk and the cost of segregated fund guarantees have risen.

Moody's added that Manulife, unlike most of the other large writers of variable annuities and segregated funds in North America, has not implemented a comprehensive equity hedging program, making the company more vulnerable than peers to equity market volatility. Manulife did implement a hedging program in 2008 to offset the equity market risk associated with new variable annuity policies the company writes in the U.S. Expanding this program comprehensively across all Manulife's segregated fund and variable annuity businesses would help mitigate the underlying economic risk in these products and be consistent with Moody's expectations for an Aa-rated life insurer.

Moody's went on to note that the C$2.3 billion issuance of common equity in 4Q08 was indicative of the underlying strength of Manulife's core franchises in Canada, the United States, and Asia. Manulife's financial profile continues to benefit from a diversified earnings base, strong financial flexibility, and well-positioned franchises in North America and Asia. In recent years, the company has complemented strong profitability performance with a conservative capital structure, though recent market conditions have eroded that position somewhat.

The following ratings were placed on review for possible downgrade:

Manufacturers Life Insurance Company -- insurance financial strength of Aa1;

John Hancock Life Insurance Company (USA) -- insurance financial strength of Aa1;

John Hancock Life Insurance Company -- insurance financial strength of Aa1, senior unsecured of Aa2, surplus notes of Aa3;

John Hancock Variable Life Insurance Company -- insurance financial strength of Aa1;

John Hancock Life & Health Insurance Company -- insurance financial strength of Aa1;

John Hancock Life Insurance Co. of New York -- insurance financial strength of Aa1;

John Hancock Global Funding II -- backed senior secured Aa1;

John Hancock Canadian Corporation -- backed senior secured of A1;

STructured Asset Repackaged Trust,Ser. 2002-2 -- backed senior secured Aa1.

The following rating was affirmed:

John Hancock Financial Services, Inc. -- commercial paper at P-1.

Manulife Financial Corporation, headquartered in Toronto, Canada, is an international provider of life insurance, pension, and investment products. On December 31, 2008 the company reported consolidated total balance sheet and segregated-fund assets of C$376 billion, common shareholders' equity of C$27 billion, and annual net income available to common shareholders of C$487 million.

The last rating action was on December 4, 2008 when Moody's affirmed Manulife's ratings and maintained a negative outlook following the announcement of a large issuance of common equity and an estimated fourth quarter loss of C$1.5 billion.

The principal methodology used in rating the Manulife family of companies was Moody's Global Rating Methodology for Life Insurers, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating Manulife can also be found in the Credit Policy & Methodologies directory.

Moody's insurance financial strength ratings are opinions on the ability of insurance companies to pay punctually their senior policyholder claims and obligations.

For more information, visit our website at www.moodys.com/insurance.

Toronto
Peter Routledge
VP - Senior Credit Officer
Financial Institutions Group
Moody's Canada Inc.
(416) 214-1635

New York
Robert Riegel
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Correction to text, February 12, 2009 Release: Moody's places Manulife's ratings on review for downgrade
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com