Moodys.com
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:

MOODY'S CHANGES OUTLOOK FOR US WIRELESS INDUSTRY TO NEGATIVE. PLACES MAJORITY OF NON-INVESTMENT GRADE US WIRELESS OPERATORS ON REVIEW FOR POSSIBLE DOWNGRADE. OUTLOOKS FOR AT&T WIRELESS AND NEXTEL COMMUNICATIONS CHANGED TO NEGATIVE

21 Jun 2002
MOODY'S CHANGES OUTLOOK FOR US WIRELESS INDUSTRY TO NEGATIVE. PLACES MAJORITY OF NON-INVESTMENT GRADE US WIRELESS OPERATORS ON REVIEW FOR POSSIBLE DOWNGRADE. OUTLOOKS FOR AT&T WIRELESS AND NEXTEL COMMUNICATIONS CHANGED TO NEGATIVE

Rapidly Decelerating Growth and Highly Competitive Marketplace Cited

New York, June 21, 2002 -- The US wireless industry has grown very rapidly since the introduction of PCS competition into the former cellular duopoly in the mid 1990s. The expectation for continued strong growth through the early years of this decade, based on the assumption that the US would experience similar penetration rates as enjoyed in Western Europe presently north of 70%, has been the main driver for continued capital investment in the sector and for the ratings that had been assigned. However, subscriber growth slowed significantly in the second half of 2001, which led to fears that the wireless industry was more mature than anticipated and that the industry structure of six national competitors would be difficult to sustain in such a mature market.

Moody's has already taken many negative ratings actions on US wireless companies, due in part to competitive concerns and doubts about growth rates. Cingular's ratings were lowered one notch to A3 with a negative outlook in November 2001, the ratings for Verizon Wireless (currently A2) were placed on review for possible downgrade in May 2002, and Sprint Corp (parent of Sprint PCS) had its ratings lowered one notch to Baa3 with a negative outlook earlier this month. Voicestream (wholly owned by Deutsche Telekom, senior unsecured Baa1) has had its rating cut two notches over the course of this year and recently had its rating outlook changed to negative. US Cellular also had its rating outlook changed to negative this May. Ratings actions for non-investment grade carriers taken already in 2002 include the downgrades of American Cellular (senior implied rating lowered 4 notches to Caa1 in May), Nextel Communications (lowered 1 notch to B1 in May), NTELOS (lowered 2 notches to Caa1 in June), and Western Wireless (2 notches to B1 in March).

First quarter 2002 subscriber results were fairly positive for the industry, supporting some hope that while subscriber growth would indeed eventually slow down, there still was a fair amount of growth left in the market, so that the carriers would not need to resort to irrational price competition in a fight for market share. To date, carriers have not competed primarily on price. Instead, they drove subscriber growth by expanding their service offering, with such offers as free long distance, no roaming charges, and larger buckets of minutes included in the monthly plans.

However, recent announcements from Sprint PCS and two of its affiliates have renewed concern at Moody's that the market may already be more mature than expected and that what, in the second half of 2001, could previously have been interpreted as a cyclical slowdown of growth, is now more secular in nature. Over the past nine quarters, Sprint PCS led the industry in net subscriber additions in all quarters except 1Q01, and its affiliates have typically been among the industry leaders in incremental penetration gains. Thus the announcement that Sprint PCS would add only 300,000 subscribers in 2Q02, and, for the full year, 10% to 15% fewer than guidance provided in February, is particularly troubling. That February guidance for 3 million net subscriber additions had already been reduced from 2002 net addition guidance of 3.6 to 3.7 million given in December 2001.

In Moody's opinion, the reduction of subscriber growth estimates from the fastest growing carrier is a troubling sign that the market for wireless service in the US has decelerated sooner and more sharply than we have anticipated. Consequently, it appears that the market may be more mature than previously thought. Moreover, the market is moving closer to a 'zero sum' game where one carrier's growth comes largely at the expense of other carriers. This decelerating growth comes at a time when carrier's are investing heavily to upgrade their networks such that even the large investment grade carriers are net users of cash and are not yet generating positive returns. Continued strong growth and decent demand for new services available from the newer networks are critical to allow operators to reach the inflection point and start generating cash flow. We are becoming increasingly concerned about these prospects. Thus, in Moody's opinion, the risk profile of all wireless carriers has increased. Increased price competition could exacerbate pressures on industry cash flows caused by high subscriber acquisition costs, and significant capital requirements both to provide sufficient network capacity to accommodate the tremendous amount of minutes being used and to update technology platforms.

For non-investment grade carriers with weaker capital structures, the situation is more acute. Many of the business plans, particularly of the Sprint PCS affiliates, are predicated on the existence of a larger, more robust wireless market than is likely to occur. For rural carriers, the expectation that the gap would be closed between the national penetration rate and the lower rates experienced in those rural markets is much less certain. And while Nextel Communications is less directly affected by accelerated maturity of the wireless marketplace because of its differentiated service offering targeted at the business market, ultimately the other national carriers will look to reignite their growth by targeting the Nextel markets, particularly after they have launched their upgraded networks.

Consolidation in the industry could certainly alleviate the stress on the wireless business model. However, it is uncertain when consolidation in the industry may take place, if permitted at all. Moreover, it is also uncertain how such possible consolidation will affect the industry in general and individual operators in particular.

Moody's believes that the wireless industry is sufficiently different from many other sectors in the broad telecommunications industry (i.e., CLECs and long haul carriers), due to the high barriers to entry, the substantial volume of revenue that the industry already generates, that it is not subject to competitive threat from outside the industry; such that investors should not experience the extraordinary capital losses seen in those other sectors. Nonetheless, wireless is not immune from the ills that have beset the broader industry such as over capacity, too many service providers, and demand growth slower than anticipated. Consequently, in the event of default, impairment is a very real risk, especially to unsecured claims of non-investment grade issuers (and in particular, the Sprint PCS affiliates), although perhaps not to the extent seen in other sectors.

In light of these concerns, Moody's is taking the following ratings actions:

The ratings outlook of AT&T Wireless Services, Inc. (senior unsecured Baa2) has been revised to negative from stable due to the industry concerns discussed above. While the company has attempted to manage its balance sheet to address the risk profile of the industry, the concerns highlighted above may make this objective more difficult in the future. Although the company's liquidity profile is strong, Moody's notes that the company is investing heavily in its network and will be free cash flow negative near term.

The ratings outlook for Nextel Communications, Inc. (senior implied B1, unsecured B3) and Nextel Finance Company (secured debt Ba3) have also been revised to negative from stable. While we believe that Nextel's differentiated product will serve to insulate the carrier over the near term from the ill effects of the slowdown in the broader wireless marketplace, ultimately that slowdown accelerates the potential of heightened competitive threat to Nextel from other carriers as they launch their latest generation technology networks. These are the same concerns we had noted when we assigned the current ratings in May, however given the magnitude of the shortfall in industry subscriber growth, Moody's believes that those longer-term risks have been brought forward far enough to warrant a change in ratings outlook.

Moody's has initiated a review of the ratings of all the Sprint PCS affiliates (but not of Sprint Corp. itself) as outlined below. This group of credits are at the most risk from the early maturity of the industry. While two of these seven issuers have achieved positive EBITDA, this is in very small amounts. Moody's recognizes that slower subscriber growth helps EBITDA growth in the short term. However, our ratings review will focus on the sufficiency of that EBITDA growth to support capital structures that were predicated on achieving a larger subscriber base than is likely to be attained. The Sprint PCS affiliate ratings placed on review for possible downgrade are:

AirGate PCS, Inc. (senior implied B2)

13.5% Subordinated Discount Notes due 2009 Caa1

Alamosa (Delaware), Inc. (senior implied B2)

Secured Credit Facility B2

12.875% Senior Discount Notes due 2010 Caa1

12.5% Senior Notes due 2011 Caa1

13.625% Senior Notes due 2011 Caa1

Horizon PCS, Inc. (senior implied B2)

Secured Credit Facility B1

14% Senior Discount Notes due 2010 Caa1

13.75% Senior Notes due 2011 Caa1

iPCS, Inc. (senior implied B2)

Secured Credit Facility B1

14.0% Senior Discount Notes Caa1

IWO Holdings, Inc. (senior implied B2)

14% Senior Notes due 2011 Caa1

US Unwired Inc. (senior implied B1)

Secured Credit Facility Ba3

13.375% Subordinated Discount Notes due 2009 B3

Ubiquitel Operating Company (senior implied B2)

Secured Credit Facility B2

14.0% Subordinated Discount Notes due 2010 Caa1

Moody's has also initiated a review of the two other affiliated credits, Nextel Partners and Triton PCS. Both issuers have been able to achieve above average operating metrics (subscriber growth, ARPU, and churn primarily), nonetheless both are highly levered. While Triton PCS has achieved positive EBITDA ($36 million in 1Q02), both companies will require significant growth in order to service their large debt burdens (roughly $1.4 billion each at the end of 1Q02). These ratings on review for possible downgrade are:

Nextel Partners, Inc. (senior implied B2)

Secured Credit Facility B1

14.0% Senior Discount Notes due 2009 B3

11.0% Senior Notes due 2010 B3

12.5% Senior Notes due 2009 B3

Triton PCS, Inc. (senior implied B1)

Secured Credit Facility Ba3

11.0% Subordinated Discount Notes due 2008 B2

9.375% Subordinated Notes due 2011 B2

8.75% Subordinated Notes due 2011 B2

With regard to the rural cellular carriers, Moody's already has Centennial Communications on review, but today we are placing the rest of the rural cellular issuers on review for possible downgrade as well, with the exception of American Cellular whose ratings were lowered (senior implied Caa1 with a negative outlook) in May. These carriers are not exposed to the same levels of competition as the national carriers or their affiliates, nonetheless the expectation that these rural carriers could continue to grow their subscriber base is incorporated into their current ratings. Additionally, to maintain the roaming minutes these carriers enjoy they must make significant capital expenditures to upgrade their networks to parallel the migration of their roaming partners. Further, all these operators carry substantial amounts of secured bank debt that will require principal amortization. As with all the operators placed on review, Moody's will focus on the sufficiency of the free cash flow generation of these carriers and their ability to meet upcoming debt obligations.

Dobson Communications Corp. (senior implied B1)

DOC Secured Credit Facility Ba3

DCC 10.875% Senior Notes due 2010 B3

Sygnet 12.25% Senior Notes due 2008 B3

DCC 12.25% Exch Preferred Stock Caa2

DCC 13.0% Exch Preferred Stock Caa2

Rural Cellular Corporation (senior implied B1)

Secured Credit Facility Ba3

9.625% Subordinated Notes due 2008 B3

9.75% Subordinated Notes due 2010 B3

11.375% Senior Exch Preferred Stock due 2010 Caa1

12.25% Junior Exch Preferred Stock due 2011 Caa2

Western Wireless Corporation (senior implied B1)

Secured Credit Facility B1

10.5% Subordinated Notes due 2006 B3

10.5% Subordinated Notes due 2007 B3

While perhaps the least affected by the woes of the larger carriers, Moody's is also placing the ratings Leap Wireless International on review for possible downgrade. Even more so than Sprint PCS, the 'Cricket' unlimited offering provided by Leap appeals most to the least served segment of the current market place. Further, the service is positioned to attract subscribers substituting wireless service for wireline. However, Leap has approximately $2 billion of debt outstanding, has not yet achieved positive EBITDA, and has substantial near term amortization requirement under its vendor financing obligations. The ratings placed on review for possible downgrade are:

Leap Wireless International, Inc. (senior implied B3)

12.5% Senior Notes due 2010 Caa2

14.5% Senior Notes due 2010 Caa2

Moody's expects to begin concluding these rating reviews after 2Q02 results have been announced and we have had the opportunity to discuss with the various managements their particular strategies for managing their businesses in the face of the diminished growth prospects for the industry and the threat of adverse competitive developments in the marketplace.

New York
Dennis Saputo
Senior Vice President
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Marcus C. Jones
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2021 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 CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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 APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER 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. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS 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, ASSESSMENTS, OTHER OPINIONS, AND 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, ASSESSMENTS, OTHER OPINIONS OR 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.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND 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 its 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, ASSESSMENT, 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 credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service 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 credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

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

Moodys.com