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Rating Action:

Moody's affirms JPMorgan Chase's ratings, outlook stable

18 Nov 2020

New York, November 18, 2020 -- Moody's Investors Service, ("Moody's") has affirmed the long-term debt and deposit ratings, counterparty risk ratings and counterparty risk assessments of JPMorgan Chase & Co. (JPM, senior debt at A2) and certain subsidiaries, as well as the baseline credit assessment (BCA) of its principal bank subsidiary, JPMorgan Chase Bank, N.A. (deposits at Aa1 and BCA of a2). Moody's also affirmed all Prime-1 short-term ratings of JPM's rated subsidiaries. All rating outlooks are stable. A complete list of affected ratings and entities can be found at the end of this press release.

RATINGS RATIONALE

The affirmation reflects the breadth and strength of JP Morgan's four franchises -- Consumer and Community Banking, Commercial Banking, Asset and Wealth Management and Corporate and Investment Banking. Management has consistently enhanced the customer value proposition and profitability of each of these businesses and achieved a position among the industry leaders. Each business has significant scale, producing $42 billion of pre-provision profits in the first nine months of 2020 that helped the bank absorb $15.2 billion in increased credit provisions during this period.

JP Morgan's business mix also produces noteworthy diversification benefits for bondholders, providing a sturdy buffer against the greater volatility of the bank's capital markets activity through the cycle. JPM's inherent capital market risks are further mitigated by the more stable wholesale payments and securities service businesses housed within the investment bank, as well as the scale and completeness of the firm's primary and secondary capabilities, which allow it to be selective in the capital markets activity it pursues.

JP Morgan's client driven execution has produced consistent growth in customer balances and engagement in each of the bank's four franchises. This has allowed JP Morgan to capture market share in many businesses - such as retail deposits, wealth management, investment banking and secondary trading. This growth has been driven in part by footprint expansion and not primarily by a relaxation in underwriting standards. This nimble approach to growth has bolstered JP Morgan's competitive advantage and Moody's expects it will help sustain the bank's low levels of earnings volatility compared to peers.

JPM's solid capital and liquidity position was also a factor in the rating affirmation. At Q3 2020, JPM's Basel III fully phased-in CET1 ratio was 13.1% under the standardized approach compared to a requirement of 11.3% including the Stress Capital Buffer. Regulators have also prohibited US banks from repurchasing shares, and we do not expect JPM to significantly reduce capital buffers until pandemic uncertainty is reduced. As economic uncertainty recedes, we expect JPM to resume share repurchases and reduce its current buffers over regulatory requirements. JPM is also very liquid, benefitting from the firm's diversified and growing deposit base and the healthy weighted average maturity of its long-term debt. The firm reported a Liquidity Coverage Ratio of 114% at 30 September 2020.

The continuing emergence of digitally focused competitors poses a threat to incumbent financial services firms. However, Moody's expects that JP Morgan's scale, earnings capacity, and diversity of businesses will allow the firm to continue innovating its client offerings, retain its key relationships and maintain its competitive advantage, even as digital disruption of banking accelerates.

STRUCTURAL AND SUPPORT CONSIDERATIONS

Moody's existing assumptions of Loss Given Failure (LGF) uplift and Government support remain unchanged for JPM and its subsidiaries.

JPMorgan Chase Bank, N.A.'s deposit and counterparty risk ratings were affirmed at Aa1, both four notches above the a2 baseline credit assessment, including 3 notches of LGF benefit reflecting Moody's expectation of an extremely low severity of loss in the event of a default, and one notch reflecting a moderate likelihood of systemic support. Senior debt at the lead bank level is rated Aa2 and lead bank subordinated debt is rated (P)Aa3 as both classes are expected to face very low loss given failure and receive two notches of LGF benefit. Senior debt at the lead bank level also receives a further one notch of benefit reflecting a moderate likelihood of systemic support.

The senior debt rating of the holding company, JPMorgan Chase & Co., is A2, the same level as the bank's baseline credit assessment reflecting expectation of moderate loss given failure. JPM's holding company debt ratings do not incorporate any lift to reflect the potential for US government support. For subordinated securities issued by the holding company, our LGF analysis indicates a high loss-given-failure and are rated one notch below the BCA at A3. The ratings on more junior holding company obligations also incorporate additional downward notching from the BCA reflecting the coupon suspension risk ahead of potential failure.

AFFIRMATION OF OPERATING SUBSIDIARY RATINGS

In addition to JPMorgan Chase Bank, N.A., Moody's also affirmed the long-term ratings of four other operating subsidiaries, namely J.P. Morgan Securities, LLC; as well as three entities based in Europe - J.P. Morgan Securities plc and J.P. Morgan AG and J.P. Morgan Bank Luxembourg S.A. These four entities are material legal entities and are closely integrated with the JPM group -- managerially, operationally and financially. Currently, we apply our Securities Industry Market Makers Methodology to J.P. Morgan Securities, LLC and J.P. Morgan Securities plc and treat J.P. Morgan AG and J.P. Morgan Bank Luxembourg S.A. as highly integrated harmonized subsidiaries. In each case, each of these entities carries an adjusted standalone assessment (or adjusted BCA in the case of J.P. Morgan AG and J.P. Morgan Bank Luxembourg S.A.) equal to that of the group BCA of a2, reflecting our view that these entities will benefit from internal pre-positioned structural support or are very likely to be supported by the group in any event. Further, the three European entities are important to JPM's Brexit implementation program which may entail changes to the current level of staff, capital, liquidity and assets as the program is implemented. Hence, their balance sheets and booking model and Moody's ratings approach may evolve as these changes occur. However, these changes will be made in the context of JP Morgan's capital adequacy and planning processes which are designed to ensure capital adequacy of an entity in normal and stressed environments and this expectation is a factor in the stable outlooks on the ratings of these entities.

Moody's believes that in resolution creditors at each of J.P. Morgan Securities, LLC, J.P. Morgan Securities plc, J.P. Morgan Bank Luxembourg S.A. and J.P. Morgan AG would benefit from the loss-absorption provided by the bail-in of creditors at JPM's holding company consistent with the firm's resolution plan and the US banking regulators adoption of single-point of entry receivership as their preferred bank resolution framework. However, Moody's does not expect creditors at those subsidiaries would benefit from any loss absorption provided by junior instruments at JPM's US bank subsidiaries. This translates into two notches of LGF uplift for the Aa3 Issuer ratings of each of the four subsidiaries. The Aa1 deposit rating and counterparty risk rating of J.P. Morgan AG as well as the Aa1(cr) counterparty risk assessments of the three other subsidiaries incorporate 3 notches of LGF uplift plus one notch of uplift reflecting a moderate likelihood of government support due to the systemic importance of these subsidiaries as material legal entities and major trading counterparties and clearing vehicles.

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

The large size and complexity of JP Morgan's capital markets businesses can pose substantial creditor risks. Therefore, further upgrades would depend on maintaining strong and stable performance and capital levels above peer averages while establishing a superior track record of risk controls and exemplary regulatory relations.

Under our advanced Loss-Given-Failure (LGF) framework, upward rating pressure could develop for various debt tranches at the operating subsidiaries or the holding company if there is a sustained increase in the thickness of tranches or the subordination underneath tranches, relative to tangible banking assets and losses estimated in the framework or we change our assumptions regarding resolution perimeters.

JP Morgan could be downgraded if the bank experiences a significant deterioration in its capital or liquidity levels, demonstrates a marked increase in its risk appetite, or experiences a major litigation or other sizeable operational risk charge or control failure.

Erosion of competitive standing of any of the four franchises that reduces the benefits of diversification could lead to downward rating pressure.

Under our advanced Loss-Given-Failure (LGF) framework, downward rating pressure could develop for various debt tranches at the operating subsidiaries or the holding company if there is a sustained decrease in the thickness of tranches or the subordination underneath tranches, relative to tangible banking assets and losses estimated in the framework or we change our assumptions regarding resolution perimeters.

LIST OF AFFECTED RATINGS

Affirmations:

..Issuer: JPMorgan Chase & Co.

....Commercial Paper, Affirmed P-1

....LT Issuer Rating, Affirmed A2, Stable

....Senior Unsecured Medium-Term Note Program (Local Currency), Affirmed (P)A2

....Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)A2

....Subordinate Medium-Term Note Program (Local Currency), Affirmed (P)A3

....Subordinate Medium-Term Note Program (Foreign Currency), Affirmed (P)A3

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

....Pref. Stock Non-cumulative, Affirmed Baa2 (hyb)

....Senior Unsecured Bond (Local Currency), Affirmed A2, Stable

....Senior Unsecured Bond (Foreign Currency), Affirmed A2, Stable

....Junior Subordinate Bond, Affirmed Baa1 (hyb)

....Subordinate Bond, Affirmed A3

....Pref. Shelf Non-cumulative, Affirmed (P)Baa2

....Senior Unsecured Shelf, Affirmed (P)A2

....Subordinate Shelf, Affirmed (P)A3

..Issuer: BANK ONE CORPORATION

....Subordinate Bond, Affirmed A3

..Issuer: BANK ONE Capital III

....Backed Pref. Stock, Affirmed Baa1 (hyb)

..Issuer: Bank One, Michigan

....Subordinate Bond, Affirmed Aa3

..Issuer: The Bear Stearns Companies LLC.

....Senior Unsecured Bond, Affirmed A2, Stable

..Issuer: J.P. Morgan & Co. Incorporated

....Senior Unsecured Bond (Local Currency), Affirmed A2, Stable

....Senior Unsecured Bond (Foreign Currency), Affirmed A2, Stable

....Subordinate Bond, Affirmed A3

..Issuer: JP Morgan International Derivatives Ltd

....Backed Senior Unsecured Bond (Foreign Currency), Affirmed Aa2, Stable

..Issuer: J.P. Morgan AG

....Adjusted Baseline Credit Assessment, Affirmed a2

....Baseline Credit Assessment, Affirmed a2

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....LT Issuer Rating (Local Currency), Affirmed Aa3, Stable

....ST Issuer Rating (Local Currency), Affirmed P-1

....LT Issuer Rating (Foreign Currency), Affirmed Aa3, Stable

....ST Issuer Rating (Foreign Currency), Affirmed P-1

....LT Bank Deposits (Local Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Local Currency), Affirmed P-1

....LT Bank Deposits (Foreign Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Foreign Currency), Affirmed P-1

..Issuer: J.P. Morgan Bank Luxembourg S.A.

....Adjusted Baseline Credit Assessment, Affirmed a2

....Baseline Credit Assessment, Affirmed a2

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....LT Issuer Rating, Affirmed Aa3, Stable

....LT Bank Deposits, Affirmed Aa1, Stable

....ST Bank Deposits, Affirmed P-1

..Issuer: J.P. Morgan Securities plc

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Issuer Rating (Local Currency), Affirmed Aa3, Stable

....ST Issuer Rating (Local Currency), Affirmed P-1

....LT Issuer Rating (Foreign Currency), Affirmed Aa3, Stable

....ST Issuer Rating (Foreign Currency), Affirmed P-1

..Issuer: J.P. Morgan Securities, LLC

....Commercial Paper, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Issuer Rating, Affirmed Aa3

....ST Issuer Rating, Affirmed P-1

..Issuer: JP MORGAN STRUCTURED PRODUCTS BV

....Backed Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa2

....Backed Other Short Term (Foreign Currency), Affirmed (P)P-1

..Issuer: JPMorgan Chase Bank, N.A.

....Adjusted Baseline Credit Assessment, Affirmed a2

....Baseline Credit Assessment, Affirmed a2

....Senior Unsecured Bank Note Program, Affirmed (P)Aa2

....Subordinate Bank Note Program, Affirmed (P)Aa3

....ST Bank Note Program, Affirmed P-1

....LT Deposit Note/CD Program, Affirmed (P)Aa1

....LT Deposit Note/Takedown, Affirmed Aa1, Stable

....ST Deposit Note/Takedown, Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....LT Issuer Rating, Affirmed Aa2, Stable

....Senior Unsecured Medium-Term Note Program (Local Currency), Affirmed (P)Aa2

....Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa2

....Subordinate Medium-Term Note Program (Local Currency), Affirmed (P)Aa3

....Subordinate Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa3

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

....Senior Unsecured Bond (Local Currency), Affirmed Aa2, Stable

....Senior Unsecured Bond (Foreign Currency), Affirmed Aa2, Stable

....LT Bank Deposits, Affirmed Aa1, Stable

....ST Bank Deposits, Affirmed P-1

..Issuer: JPMorgan Chase Bank, N.A., London Branch

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa2

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

..Issuer: JPMorgan Chase Bank, N.A., New York Branch

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa2

....Subordinate Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa3

..Issuer: JPMorgan Chase Bank, N.A., Paris Branch

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....LT Bank Deposits (Foreign Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Foreign Currency), Affirmed P-1

..Issuer: JPMorgan Chase Bank, N.A., Singapore Br

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed (P)Aa2

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

....LT Bank Deposits (Foreign Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Foreign Currency), Affirmed P-1

..Issuer: JPMorgan Chase Bank, N.A., Toronto

....Backed Commercial Paper (Foreign Currency), Affirmed P-1

....LT Counterparty Risk Assessment, Affirmed Aa1(cr)

....ST Counterparty Risk Assessment, Affirmed P-1(cr)

....LT Counterparty Risk Rating (Local Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Local Currency), Affirmed P-1

....LT Counterparty Risk Rating (Foreign Currency), Affirmed Aa1

....ST Counterparty Risk Rating (Foreign Currency), Affirmed P-1

....LT Bank Deposits (Local Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Local Currency), Affirmed P-1

....LT Bank Deposits (Foreign Currency), Affirmed Aa1, Stable

....ST Bank Deposits (Foreign Currency), Affirmed P-1

..Issuer: Morgan Guaranty Trust Company of New York

....Backed Senior Unsecured Bond (Foreign Currency), Affirmed Aa2, Stable

..Issuer: JPMorgan Chase Financial Company LLC

....Backed Senior Unsecured Medium-Term Note Program, Affirmed (P)A2

....Backed Senior Unsecured Bond (Local Currency), Affirmed A2, Stable

....Backed Senior Unsecured Bond (Foreign Currency), Affirmed A2, Stable

....Backed Senior Unsecured Shelf, Affirmed (P)A2

..Issuer: Chase Bank USA, National Association

....Senior Unsecured Bond (Local Currency), Affirmed Aa2, Stable

....Senior Unsecured Bond (Foreign Currency), Affirmed Aa2, Stable

Outlook Actions:

..Issuer: JPMorgan Chase & Co.

....Outlook, Remains Stable

..Issuer: The Bear Stearns Companies LLC.

....Outlook, Changed to No Outlook from Stable

..Issuer: J.P. Morgan & Co. Incorporated

....Outlook, Changed to No Outlook from Stable

..Issuer: JP Morgan International Derivatives Ltd

....Outlook, Remains Stable

..Issuer: J.P. Morgan AG

....Outlook, Remains Stable

..Issuer: J.P. Morgan Bank Luxembourg S.A.

....Outlook, Remains Stable

..Issuer: J.P. Morgan Securities plc

....Outlook, Remains Stable

..Issuer: J.P. Morgan Securities, LLC

....Outlook, Remains Stable

..Issuer: JP MORGAN STRUCTURED PRODUCTS BV

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A.

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A., London Branch

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A., New York Branch

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A., Paris Branch

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A., Singapore Br

....Outlook, Remains Stable

..Issuer: JPMorgan Chase Bank, N.A., Toronto

....Outlook, Remains Stable

..Issuer: Morgan Guaranty Trust Company of New York

....Outlook, Changed to No Outlook from Stable

..Issuer: JPMorgan Chase Financial Company LLC

....Outlook, Remains Stable

The principal methodology used in rating JPMorgan Chase & Co., BANK ONE CORPORATION, BANK ONE Capital III, Bank One, Michigan, The Bear Stearns Companies LLC., J.P. Morgan & Co. Incorporated, JP Morgan International Derivatives Ltd, J.P. Morgan AG, J.P. Morgan Bank Luxembourg S.A., JP MORGAN STRUCTURED PRODUCTS BV, JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A., London Branch, JPMorgan Chase Bank, N.A., New York Branch, JPMorgan Chase Bank, N.A., Paris Branch, JPMorgan Chase Bank, N.A., Singapore Br, JPMorgan Chase Bank, N.A., Toronto, Morgan Guaranty Trust Company of New York, JPMorgan Chase Financial Company LLC, and Chase Bank USA, National Association was Banks Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865. The principal methodologies used in rating J.P. Morgan Securities plc and J.P. Morgan Securities, LLC were Banks Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865, and Securities Industry Market Makers Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187332. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

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 at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

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 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.

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 www.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://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

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.

Peter E. Nerby
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Ana Arsov
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

No Related Data.
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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.

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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.

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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.

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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.