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”, 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 information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, 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.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             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.

 

4.             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.     

 

5.             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.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether 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 Deutsche Bahn's Aa1 ratings and downgrades BCA to a3; changes outlook to stable

04 Jul 2022

Paris, July 04, 2022 -- Moody's Investors Service ("Moody's") has today affirmed the Aa1 long-term issuer rating of Deutsche Bahn AG (DB or the company). Moody's also affirms DB's (P)Aa1 senior unsecured MTN program rating, and the P-1 commercial paper rating.

Concurrently Moody's downgraded to a3 from a2 the standalone Baseline Credit Assessment (BCA) and downgraded to Baa1 from A3 the long-term rating of the backed Undated Subordinated Resettable Fixed Rate Notes (junior subordinated "Hybrid") issued by DB, through its subsidiary Deutsche Bahn Finance GmbH. The outlook has been changed to stable from negative.

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

RATINGS RATIONALE

The affirmation of DB's Aa1 long-term issuer rating with a five notch uplift from the a3 BCA reflects Moody's view that the high level of government support expected for the company is sufficient to justify a Aa1 rating with a stable outlook despite the weaker BCA. The previous negative outlook had captured the significant stress arising from the pandemic.  While recent months have seen clear signs of recovery, the ongoing capital expenditure needs and the still constrained profitability are likely to result in elevated leverage for a more extended period, at a level no longer consistent with an a2 BCA, despite significant capital contributions from the government.  The downgrade of DB's BCA to a3 reflects Moody's expectations that the company's leverage will remain above 7.0x and its free cash flows will be materially negative in the next 18-24 months, higher than levels seen prior to 2019, as a result of high capital expenditure and increased levels of debt. The change of the outlook to stable from negative reflects Moody's expectations that post-pandemic recovery will continue and that the company will be able to offset increased inflationary pressures through among others its cost savings programme.

DB's Aa1 long-term issuer rating combines: (1) its a3 BCA; and (2) Moody's assessment of a high likelihood that the company will receive extraordinary support from the German Government (Aaa stable) in times of need. This assessment is based on the German government's willingness, and very strong ability to provide support to DB, given the sovereign's ample financial reserves, as reflected in its Aaa rating. Such an assessment results in a five-notch uplift to the company's BCA for a final rating of Aa1.

DB's BCA remains supported by the company's size, geographical diversification and leading global market position, as well as the stability and predictability of the legal framework for railway companies in Germany.

The increase in the uplift in DB's final rating to five notches from four notches above the BCA is consistent with Moody's assessment of the continuing strategic importance of DB beyond the government's guarantee to provide a public rail service across Germany. This also reflects DB's key contribution to the government's Climate Action Program and the achievement of the government's CO2 reduction target (CO2 reduction targets were set based on CO2 emissions in 1990) for the German transport sector, which in 2021 was raised to -48% by 2030 (from -42%, the previous target set in 2019); its increasingly important role as the European hub for rail transport; and its vital importance to the German government's energy replacement strategy which is necessary to compensate for energy deliveries from Russia. DB is also vital to fulfilling new transport requirements triggered by the military conflict in Ukraine. The government has established a strong track record of ongoing and extraordinary support for DB when needed. For example, to compensate for losses related to COVID-19, the government provided EUR3.8 billion in 2021 and a further EUR2.2 billion is expected in 2022. This is in addition to the more than EUR9 billion expected annual capex contributions and EUR1 billion annual capital injection (equity and investment grants) the government will continue to make through to 2030 for the Climate Action Program and other indirect measures such as VAT reductions and surcharges to domestic air travel aimed at promoting the increased utilisation of rail transport in Germany.

Despite government support, DB's gross debt increased to around EUR41 billion in 2020 from around EUR 36 billion in 2019 as a result of the pandemic, however it has remained stable in 2021. Moody's expects a broadly stable debt position in 2022 before reducing to around EUR 38 billion in 2024. DB's revenues recovered ahead of pre-pandemic levels already in 2021, however EBITDA did not fully recover because revenues from the lower margin freight segments were proportionately higher than they were before the pandemic.  Moody's expects EBITDA and operating cash flow to recover close to pre-pandemic levels in 2022 based on recent trading. Recovery will be bolstered by the ongoing volume growth and the execution of the company's cost saving program, which aims to reduce costs by more than EUR5 billion from 2020 to 2024. Moody's expects the company's leverage to remain high at around 7x in the next 18-24 months and to improve to 6.5x thereafter if the cost savings plan is successful.

The Baa1 rating of the Hybrid is one notch lower than DB's a3 BCA and six notches lower than the company's Aa1 long-term issuer rating. This reflects certain features of the security, which is perpetual, deeply subordinated and allows DB to opt for coupon deferrals on a cumulative basis. Because of these characteristics Moody's believes that, in case of need, government support may not be as strong, or as timely as it would be for senior unsecured debt.

LIQUIDITY

Moody's expects DB to have excellent liquidity over the next 12 months, supported by its cash position of EUR4 billion as of 31 March 2022; its fully available commercial paper programme of EUR3 billion as of 31 March 2022; its undrawn EUR2.5 billion committed credit lines as of 31 March 2022; its recovering cash flow from operations, which Moody's expects to be around EUR3.7 billion in 2022; and the planned government support.

The major cash needs for DB are capital expenditure (net of grants from the German government), which Moody's estimates at  around EUR6.5 billion (including IFRS 16) in 2022, and around EUR1 billion in debt maturities by December 2022.

Moody's expects DB to maintain its excellent access to the capital markets.

RATING OUTLOOK

The stable outlook reflects the company's ongoing recovery in earnings and cash flow and Moody's expectations that leverage will stabilize at around 7x in the next 18-24 months, a level commensurate with its a3 BCA. The stable outlook also assumes that DB will not engage in any meaningful corporate transactions over the medium term other than the divestment of Arriva.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade is unlikely given that DB's rating is one notch lower than the sovereign rating and Moody's expects this gap to remain.

The BCA could be upgraded if DB's leverage, measured by Moody's-adjusted debt/EBITDA, decreases below 6.0x on a sustained basis, DB successfully executes its plan to materially improve operational efficiencies, operating performance improves as evidenced by a substantial and sustained increase in Moody's-adjusted EBIT margin to mid-single digits and the company achieves a sustainable, positive free cash flow.

A downgrade of Germany's sovereign rating could result in a downgrade of DB's ratings. In addition, Moody's could downgrade the DB's ratings if the likelihood of extraordinary support from the government decreases or if the BCA deteriorates further and this is not adequately compensated by evidence of stronger government support.

DB's BCA could be downgraded if the company fails to execute its cost-saving plan and its Moody's-adjusted debt/EBITDA remains above 7x on a sustained basis, or DB's EBIT margin fails to improve to at least 3%. Negative rating action could also occur if the company's business profile weakens, for example as the result of a change in its integrated business model, with a separation of its rail and logistics business from its infrastructure management activities

LIST OF AFFECTED RATINGS

Downgrades:

..Issuer: Deutsche Bahn AG

.... Baseline Credit Assessment, Downgraded to  a3 from a2

..Issuer: Deutsche Bahn Finance GmbH

....BACKED Subordinate Regular Bond/Debenture, Downgraded to Baa1 from A3

Affirmations:

..Issuer: Deutsche Bahn AG

.... LT Issuer Rating, Affirmed Aa1

....Commercial Paper, Affirmed P-1

....Senior Unsecured MTN, Affirmed (P)Aa1

....Other Short Term, Affirmed (P)P-1

..Issuer: Deutsche Bahn Finance GmbH

....BACKED Commercial Paper, Affirmed P-1

....BACKED Senior Unsecured MTN, Affirmed (P)Aa1

....BACKED Other Short Term, Affirmed (P)P-1

....BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Aa1

....Senior Unsecured Regular Bond/Debenture, Affirmed Aa1

Outlook Actions:

..Issuer: Deutsche Bahn AG

....Outlook, Changed To Stable From Negative

..Issuer: Deutsche Bahn Finance GmbH

....Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGIES

The methodologies used in these ratings were Government-Related Issuers Methodology published in February 2020 and available at https://ratings.moodys.com/api/rmc-documents/64864, and Passenger Railways and Bus Companies published in December 2021 and available at https://ratings.moodys.com/api/rmc-documents/360649. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com  for a copy of these methodologies.

COMPANY PROFILE

Deutsche Bahn AG (DB) is a vertically integrated rail and logistics group that owns and operates the German national rail transportation network. DB is one of the largest rails and logistics companies in the world. In 2021, DB generated EUR47 billion of revenue and EUR3.2 billion of reported EBITDA.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security 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 issuer/deal page for the respective issuer on https://ratings.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.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com.

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

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.

Please see https://ratings.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 issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating.

Kristin Yeatman
Vice President - Senior Analyst
Corporate Finance Group
Moody's France SAS
96 Boulevard Haussmann
Paris, 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Jeanine Arnold
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's France SAS
96 Boulevard Haussmann
Paris, 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2022 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 JPY100,000 to approximately JPY550,000,000.

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

Moodys.com