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 LeasePlan's A3 rating, outlook revised to stable

07 Jan 2011

BFSR affirmed at C, short-term debt rating affirmed at Prime-2; deposit ratings of A3/Prime-2 assigned; short-term rating of Lease Plan New Zealand Limited withdrawn

Paris, January 07, 2011 -- Moody's Investors Service has affirmed today LeasePlan Corporation (LeasePlan)'s A3 long-term debt ratings, its C bank financial strength rating (BFSR), its Baa1 subordinated debt rating and its Prime-2 short-term debt ratings. At the same time, the agency has also revised the outlook to stable from negative. In addition Moody's has assigned local currency long-term and short-term bank deposit ratings to LeasePlan, of A3/Prime-2 respectively.

RATINGS RATIONALE

The change in outlook reflects Moody's belief that the heightened level of risks resulting from the wholesale funding profile of the institution has stabilized, reflecting liquidity actions taken by management and improved capital market conditions. LeasePlan's ongoing reliance on confidence-sensitive wholesale funding nevertheless remains a constraint on its ratings.

Furthermore, the previously-assigned negative outlook also incorporated Moody's concerns of the potential impact a prolonged depreciation of second-hand car market prices would have on LeasePlan's residual value risks. In this respect, Moody's notes the ability of the bank to partly mitigate risks through a set of factors implemented since late 2008/early 2009 as well as more favorable market conditions than earlier anticipated by the rating agency. Lastly, the revision of the outlook to stable also reflects the resilience of LeasePlan's commercial operations in a depressed macro-economic environment in most of the countries where the institution operates. In Moody's view, LeasePlan's leading position in a number of developed markets is one of its key credit strengths.

IMPROVED LIQUIDITY MANAGEMENT AND REDUCED RELIANCE ON OUTSIDE LIQUIDITY SUPPORT

While remaining predominantly wholesale funded, LeasePlan is in our view less dependent on external liquidity support than in March 2009, through the combined effect of measures taken by the institution and the ability of the institution to return to senior unsecured and unguaranteed markets.

The abovementioned measures include the increase of committed liquidity lines which have enabled the institution to secure a larger part of its funding. These facilities consist of a €1.475 billion line committed from its 50% ultimate shareholder Volkswagen AG (A3/Prime-2 stable) maturing in December 2013 and a committed line from a syndicate of 16 banks which was renewed in December 2010 for 3 years and increased to €1.475 billion (from €1 billion).

Another positive development is the set up of a retail internet deposit facility from February 2010, which has attracted up to €1.7 billion as per November 2010. We believe that internet based deposits add to the diversification of funding sources but caution that they still represent a small proportion of the total funding and are more volatile and price-sensitive than traditional branch deposits. In H1 2010 LeasePlan placed Bumper 3 previously retained notes with external investors. The remaining retained securitisations also allows LeasePlan to draw funds from the European Central Bank.

Moody's further notes that the institution has successfully returned to senior unsecured markets and issued several unsecured notes since it last issued state-guaranteed notes in May 2009. We also consider that the matched funding and the short duration of its lease portfolio are overall positive to the bank's liquidity.

SATISFACTORY CAPITAL BUFFERS AND MITIGATING FACTORS HELP REDUCE RESIDUAL VALUE AND CREDIT RISKS

In the context of a depressed second hand car market, in late 2008 LeasePlan started taking measures to reduce its exposure to residual value risk. These actions, coupled with the structural short-duration of car leases (between three to four years) and a slight improvement of the market prices (yet still below the pre-crisis level), have enabled LeasePlan to partly mitigate the effect of a prolonged depression in the second-hand car market prices.

In Moody's view, older operational lease vintages (originated up to 2008) are most sensitive to a further decline in second-hand car market prices in that the residual values set at inception were based on pre-crisis market prices. Conversely, the contractual residual value set on most recent vintages (from H1 2009) was based on more recent and severely depressed market prices, thus containing lower residual value risks.

Based on our analysis, and given the above factors and capital position, we believe that LeasePlan is well positioned to absorb a material worsening in termination losses (stemming from residual value risk).

Factors that would exert negative pressure on the BFSR include a deterioration of the bank's liquidity and funding profile, a deterioration of the second-hand car market prices below Moody's own expectations and an overall weakening of the institution's financial fundamentals or of its franchise.

SUBSIDIARIES AFFECTED BY THE CHANGE IN OUTLOOK

LeasePlan subsidiaries which are also affected by this rating action are listed below:

- LeasePlan Finance NV (Dublin Branch): long-term and short-term backed ratings affirmed at A3 and Prime-2 respectively and outlook revised to stable from negative

-LeasePlan Australia Limited: backed senior unsecured rating affirmed at (P)A3, backed commercial paper affirmed at Prime-2 and backed other short-term program affirmed at (P)Prime-2 and outlook revised to stable from negative

WITHDRAWAL OF RATING FOR LEASE PLAN NEW ZEALAND LIMITED

Moody's Investors Service has also withdrawn the short-term rating of LeasePlan New Zealand Limited.

LeasePlan New Zealand was a co-issuer under LeasePlan Corporation N.V.'s USD3 billion Euro Commercial Paper (ECP) programme between 2003 and 2008 and under the USD1 billion ECP programme between 1997 and 2003. LeasePlan Corporation N.V. acted as guarantor on LeasePlan New Zealand's notes.

As LeasePlan New Zealand is no longer a co-issuer under these programmes, Moody's has withdrawn its rating.

Moody's should have withdrawn its rating when LeasePlan New Zealand ceased to be a co-issuer in 2008. However, the rating remained outstanding and, in January 2010, Moody's mistakenly upgraded it to Prime-1.

Given that the notes were primarily rated on the basis of LeasePlan Corporation's guarantee, the rating should have been Prime-2 prior to its withdrawal.

LeasePlan New Zealand has no outstanding debt rated by Moody's.

PREVIOUS RATING ACTIONS AND METHODOLOGIES

The last rating action on LeasePlan was on 18 March 2009, when Moody's confirmed LeasePlan's C BFSR, A3 long-term debt rating and Baa1 long-term subordinated debt rating and revised the outlook to negative.

The principal methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007.

Based in Almere, the Netherlands, LeasePlan's pre-provision profit (PPP) was EUR132 million in H1 2010, up by 31% from EUR100 million in H1 2009 (source: Moody's). LeasePlan had total assets of EUR17.8 billion at the end of June 2010, up by 4% from EUR17.2 billion at the end-December 2009. At end-June 2010, its lease portfolio (including receivables from customers and property and equipment under operational lease and rental fleet) stood at EUR13.7 billion (year-end 2009: EUR13.6 billion) and its Tier 1 ratio stood at 13.6% (year-end 2009: 12.8%) under the Basel II advanced approach.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

The rating has been disclosed to the rated entity or its designated agents and issued with amendments resulting from that disclosure.

Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entity or its related third parties within the three years preceding the Credit Rating Action. Please see the ratings disclosure page www.moodys.com/disclosures on our website for further information.

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.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Paris
Stephane Herndl
Analyst
Financial Institutions Group
Moody's France SAS
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Frankfurt am Main
Carola Schuler
MD - Banking
Financial Institutions Group
Moody's Deutschland GmbH
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's affirms LeasePlan's A3 rating, outlook revised to stable
No Related Data.
© 2018 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. 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 SUCH 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 appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. 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. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

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 appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

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