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:

Moody's affirms Banco Comercial Portugues' B1 deposit and senior debt ratings, following upgrade of standalone BCA to b3

14 Jun 2016

Madrid, June 14, 2016 -- Moody's Investors Service has today affirmed Banco Comercial Portugues, S.A.'s (BCP) long-term deposit and senior debt ratings at B1. At the same time, the rating agency has upgraded: (1) The bank's baseline credit assessment (BCA) and adjusted BCA to b3 from caa1; (2) the bank's subordinated programme ratings to (P)Caa1 from (P)Caa2; (3) the bank's preference shares to Caa3(hyb) from Ca(hyb); and (4) the bank's long-term Counterparty Risk Assessment (CR Assessment) to Ba2(cr) from Ba3(cr). The outlook on the long-term deposit ratings remains stable and the outlook on the senior debt ratings has been changed to negative.

BCP's Not Prime short-term deposit and (P)NP short-term programme ratings were unaffected by today's rating action as well as the short-term CRA of Not-Prime(cr).

The upgrade of BCP's standalone BCA reflects the improvement of the bank's financial performance from previous very weak levels, notably in terms of profitability and capital. Moody's views that the bank continues to display a modest risk-absorption capacity but the likelihood that it would require external support to recapitalize has diminished on the back of a weak but improving credit profile.

The affirmation of BCP's long-term deposit and senior debt ratings reflects: (1) The upgrade of the standalone BCA to b3; and (2) the outcome of Moody's Advanced Loss Given Failure (LGF) Analysis after incorporating the bank's balance sheet structure at end-December 2015 and its near-term funding plan.

Today's rating action does not incorporate the impact of a potential acquisition of Novo Banco, S.A (Caa1/Caa1 developing; caa2), in which BCP has publicly stated that it is interested. Moody's notes that, as of today, BCP is not allowed to make any acquisition and that the European Commission needs to lift this ban before the bank formally presents a bid for Novo Banco. In case BCP finally receives all relevant authorizations and launches a formal offer for Novo Banco, Moody's will assess the implications of such a transaction to the credit profile of BCP.

A list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

---RATIONALE FOR UPGRADING THE BCA

The upgrade of BCP's BCA to b3 from caa1 reflects the bank's improved financial performance from very weak levels, notably in terms of profitability and capital. At end-December 2015, BCP reported a net profit of EUR361 million, equivalent to 0.5% of tangible assets, which represents a major improvement in its credit profile given the large losses booked in 2012-2014. This improvement was mainly driven by the recovery of the Portuguese operations, which had been loss making over the past three years. This trend is expected to continue in 2016 as shown by its Q1 2016 results that provided a net profit of EUR83 million, albeit the bank's profitability ratios are expected to remain at modest levels. Moody's expects BCP's operating revenues to remain challenged by Portugal's very modest growth economic prospects (i.e. the rating agency expects GDP growth to be 1.5% in 2016 and 1.8% in 2017), the low interest rates and persistent subdued business volumes. However, Moody's also considers that BCP's stabilizing asset risk trends are likely to translate into a gradual decline of provisioning costs from past very high levels, which should benefit bottom line profitability.

In upgrading the bank's BCA, Moody's has also incorporated BCP's improved capital buffers, namely driven by the continued balance sheet deleveraging and regained profitability. Moody's adjusted Tangible Common Equity (TCE) / Risk-Weighted Assets (RWAs) ratio reached 6.6% at end-March 2016 broadly in line with the level reported at end-December 2015. This ratio should be further enhanced after incorporating the benefits from the merger of its majority-owned Angolan subsidiary with another domestic player, that took place in April 2016 and has led to the deconsolidation of these operations.

From a regulatory perspective, the bank's capital ratios have also improved. On a pro-forma basis (including the impact of the merger in Angola), BCP reported a phased-in Common Equity Tier 1 (CET 1) ratio of 13.2% at end-March 2016, which compares to 11.6% a year earlier. The bank's pro-forma fully loaded CET 1 ratio increased to 10.1% at end-March 2016 from 8.9% a year earlier.

Despite the mentioned improvements, Moody's notes that BCP's b3 BCA also reflects the bank's very weak asset risk profile. BCP displays a very high stock of problematic exposures, which despite stabilizing continue to challenge the bank's credit profile. At end-March 2016, the bank reported problematic assets (measured as credit-at-risk loans and foreclosed real estate assets) of 13.8%, indicating the existing balance sheet pressure which the bank faces.

BCP still has to address the repayment of EUR750 million of the contingent capital securities (CoCos) that it received from the Portuguese government in 2012, which needs to be completed before mid-2017. This will have an impact on BCP's regulatory capital ratios, but Moody's expectation is that the bank will manage to meet prudential capital requirements set up for next year. SREP requirements have not been publicly disclosed for BCP; the bank will also have to comply with an additional 1% CET1 buffer (as a systemic institution in Portugal) from January 2017 onwards.

Overall, Moody's views that BCP's risk-absorption capacity is very modest when compared to other large European banks. However, given the stabilizing asset risk and improved profitability trends, the rating agency expects that the bank will be able to meet forthcoming additional capital buffers without requiring any external support.

---RATIONALE FOR AFFIRMING THE LONG-TERM DEPOSIT AND SENIOR DEBT RATINGS

The affirmation of BCP's long-term deposit and senior debt ratings at B1 reflects: (1) The upgrade of the bank's BCA and adjusted BCA to b3 from caa1; (2) the result from the rating agency's Advanced Loss-Given Failure (LGF) analysis which results in one notch of uplift for the deposit and senior debt ratings; and (3) Moody's assessment of moderate probability of government support for BCP, which results in an unchanged further one notch of uplift for both the deposit and the senior debt ratings.

Taking account of the bank's balance sheet structure at end-December 2015 and its near term funding plan, the rating agency's LGF Analysis indicates that the bank's deposits and senior debt are likely to face low loss-given failure, due to the loss absorption provided by subordinated debt, as well as the volume of deposits and senior debt themselves. This results in a Preliminary Rating Assessment (PRA) of b2 for deposits and senior debt, one-notch above the BCA. This is lower than under the previous analysis, which was based on data as of end June 2015 and resulted in a two notch uplift from the BCA, because the bank has since amortized a significant volume of debt instruments, which have reduced the loss absorption for deposits and senior debt liabilities issued by the bank.

---RATIONALE FOR UPGRADING THE CR ASSESSMENT

As part of today's rating action, Moody's has also upgraded to Ba2(cr) from Ba3(cr) the long-term CR Assessment of BCP, four notches above the adjusted BCA of b3.

The upgrade of the CR Assessment follows the upgrade of BCP's BCA to b3 from caa1. The CR Assessment is driven by standalone assessment and by the considerable amount of subordinated instruments likely to shield counterparty obligations from losses, accounting for three notches of uplift relative to the BCA, as well as one notch of government support, in line with the agency's support assumptions on the bank's deposits and senior debt.

---RATIONALE FOR THE OUTLOOK

The outlook on the deposit ratings is stable. This reflects Moody's view that BCP's credit profile will remain resilient despite persistent challenges stemming from the weak operating environment in the countries in which the group operates, namely Portugal.

The outlook on the senior debt ratings is negative, reflecting the downward pressure that could develop if the bank does not achieve Moody's expectation regarding its liability structure and balance sheet deleveraging, which could result in higher loss given failure for this type of debt.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward pressure on BCP's BCA could be driven by: (1) Stronger TCE levels; (2) a material improvement in its asset risk profile; and (3) a sustainable recovery in the bank's recurring earnings.

Downward pressure on the bank's BCA could develop as a result of: (1) A reversal in current asset risk trends with an increase in the stock of nonperforming loans (NPLs) and/or other problematic exposures; and (2) a weakening of BCP's internal capital-generation and risk-absorption capacity as a result of deteriorating profitability levels.

As the bank's debt and deposit ratings are linked to the standalone BCA, any change to the BCA would likely also affect these ratings.

BCP's deposit and senior debt ratings could also change due to movements in the loss-given failure faced by these securities.

In addition, any changes to our considerations of government support could trigger downward pressure on the bank's deposit and debt ratings.

LIST OF AFFECTED RATINGS

Issuer: Banco Comercial Portugues, S.A.

..Upgrades:

....Adjusted Baseline Credit Assessment, upgraded to b3 from caa1

....Baseline Credit Assessment, upgraded to b3 from caa1

....Long-term Counterparty Risk Assessment, upgraded to Ba2(cr) from Ba3(cr)

....Subordinate Medium-Term Note Program, upgraded to (P)Caa1 from (P)Caa2

....Pref. Stock Non-cumulative, upgraded to Caa3(hyb) from Ca(hyb)

..Affirmations:

....Senior Unsecured Medium-Term Note Program, affirmed (P)B1

....Senior Unsecured Regular Bond/Debenture, affirmed B1, outlook changed to Negative from Stable

....Long-term Deposit Ratings, affirmed B1 Stable

..Outlook Actions:

....Outlook changed to Stable(m) from Stable

Issuer: BCP Finance Bank, Ltd.

..Upgrades:

....Backed Subordinate Medium-Term Note Program, upgraded to (P)Caa1 from (P)Caa2

....Backed Subordinate Regular Bond/Debenture, upgraded to Caa1 from Caa2

..Affirmations:

....Backed Senior Unsecured Medium-Term Note Program, affirmed (P)B1

....Backed Senior Unsecured Regular Bond/Debenture, affirmed B1, outlook changed to Negative from Stable

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: BCP Finance Company

..Upgrades:

....Backed Subordinate Shelf, upgraded to (P)Caa1 from (P)Caa2

....Backed Pref. Stock Non-cumulative, upgraded to Caa3(hyb) from Ca(hyb)

..Outlook Actions:

....No Outlook

Issuer: Banco Comercial Portugues, SA, Macao Br

..Upgrades:

....Long-term Counterparty Risk Assessment, upgraded to Ba2(cr) from Ba3(cr)

....Subordinate Medium-Term Note Program, upgraded to (P)Caa1 from (P)Caa2

..Affirmations:

....Senior Unsecured Medium-Term Note Program, affirmed (P)B1

....Long-term Deposit Rating, affirmed B1 Stable

..Outlook Actions:

....Outlook remains Stable

Issuer: Banco Comercial Portugues, SA, Madeira

..Upgrades:

....Long-term Counterparty Risk Assessment, upgraded to Ba2(cr) from Ba3(cr)

..Outlook Actions:

....No Outlook

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in January 2016. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Maria Jose Mori
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's affirms Banco Comercial Portugues' B1 deposit and senior debt ratings, following upgrade of standalone BCA to b3
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