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 Luxembourg's ratings at Aaa; maintains stable outlook

30 Aug 2019

Frankfurt am Main, August 30, 2019 -- Moody's Investors Service ("Moody's") has today affirmed the Aaa senior unsecured and long-term issuer ratings of the Government of Luxembourg. The outlook remains stable.

The key drivers for the affirmation of the Aaa rating are:

1) Luxembourg's robust growth performance and extraordinarily high wealth levels, which support economic resilience;

2) The very strong institutional framework, reflected in very strong governance indicators and effective financial services sector regulation and supervision;

3) The very high fiscal strength, exemplified by general government fiscal surpluses, low and declining government debt levels, and sizable public sector assets.

The stable outlook reflects Moody's expectation that Luxembourg's credit profile will remain resilient to risks associated with Brexit, ongoing changes in global and EU-wide tax regulations and other challenges in the future. Given the economy's small size and elevated reliance on financial services, Moody's places particular emphasis on the strength of Luxembourg's government balance sheet and predictability and effectiveness of fiscal policy, as these provide a buffer against potential economic or financial shocks.

Today's rating action also applies to Luxembourg Treasury Securities SA, a special purpose vehicle (SPV) established by the Government of Luxembourg, for which Moody's has affirmed the Aaa backed senior unsecured rating and maintained the stable outlook. The payment obligations associated with the certificates issued by the SPV are direct obligations of the Government of Luxembourg, and as such carry a rating in line with the sovereign.

Luxembourg's long-term country ceilings for local and foreign currency bond and bank deposits remain unchanged at Aaa. Its short-term country ceilings for foreign-currency bonds and bank deposits remain unchanged at Prime-1 (P-1).

RATINGS RATIONALE

RATIONALE FOR THE AFFIRMATION OF THE Aaa RATING

FIRST DRIVER: ROBUST GROWTH PERFORMANCE AND VERY HIGH WEALTH SUPPORT ECONOMIC RESILIENCE

A key factor informing the rating affirmation is Moody's very high assessment of the country's economic strength, supported by sustained and robust growth performance, and extraordinarily high wealth levels.

Luxembourg has experienced particularly strong growth since the global financial crisis, averaging 2.8% per year between 2010 and 2018, outpacing average annual growth of 1.7% in the euro area during the same period. Growth has been broad-based throughout the past five years, with both domestic and external demand contributing positively to overall economic growth. Despite less supportive external conditions, Moody's expects growth rates to remain broadly in line with potential growth, averaging 2.5% between 2019 and 2023.

Strong growth over an extended period has allowed Luxembourg to build up significant levels of wealth. GDP per capita (purchasing power parity basis) was around $107,000 in 2018, much higher than the median for all euro area countries (around $40,117) and Aaa-rated peers (around $50,500), and the fourth highest in Moody's universe of rated sovereigns.

Despite the economy's small size and strong reliance on the financial services sector, Luxembourg provides a stable economic environment with a volatility in real GDP growth of 2.7 standard deviations over 2009-2018, which is close to the euro area average at 2.1 and below that of Aaa-rated peers like Sweden at 3 or Singapore at 3.8. The financial services sector itself is diversified and it features a very large international financial center, catering to the needs of a diversified international client base instead of being solely focused on providing financial services to the domestic economy. Investment funds, banking services and insurance activities all contribute significantly to the sector, while their risk profiles differ. Furthermore, the authorities actively support the development of high value-added activities outside financial services for instance in information and communications technology, health and environmental technologies, and logistics.

SECOND DRIVER: VERY STRONG INSTITUTIONAL FRAMEWORK

Luxembourg scores strongly in the Worldwide Governance Indicators, which Moody's uses as starting point for assessing institutional strength. Within the universe of sovereigns rated by Moody's, Luxembourg ranks above the 90th percentile for government effectiveness, control of corruption, and rule of law.

In light of the financial services sector's importance to Luxembourg's economy, Moody's views the regulatory authorities' prudential supervision and rigorous controls of credit institutions and other financial entities and industry professionals as a key feature of its very high assessment of the country's institutional strength. The rating agency believes that this particular feature contributes to the efficient and healthy functioning of the country's financial services industry, ultimately, reducing the risk of domestic shocks originating from that sector.

The authorities have undertaken significant reforms to respond to the specificities of Luxembourg's financial sector and have taken a proactive stance in respect of early and full implementation of multiple European and international standards. The authorities have transposed the 4th EU Anti-Money Laundering Directive into national law in 2018, and finalized the first national risk assessment report in September 2018.

The Systemic Risk Committee -- made up of the Ministry of Finance, Banque centrale du Luxembourg (BCL), the Commission de Surveillance du Secteur Financier (CSSF) and insurance supervisor Commissariat aux Assurances -- analyses the links between banks and investment funds as part of its macroprudential supervision of the financial sector. In order to counter potential risks arising from elevated household debt and rising residential property prices, the authorities activated the counter-cyclical capital buffer of 0.25% in January 2019, which will come into effect from January 2020. In addition, a revised draft bill -- first introduced in December 2017 -- providing the legal basis for an implementation of borrower-based measures will likely be passed before the end of this year.

Finally, Moody's assessment of very high institutional strength for Luxembourg is supported by a robust fiscal and economic policy framework, anchored within EU-wide rules. While the outcomes of historically prudent fiscal policy are reflected in very high fiscal strength, the transparency of government finances and the predictability of fiscal policy-making is a key part of Moody's institutional strength assessment. Rigorous reviews of the draft budget by both the public court of audit and the BCL highlight the high degree of public finance transparency, in turn ensuring healthy political debate on budget orientation and maintaining the accountability of policymakers.

THIRD DRIVER: VERY HIGH FISCAL STRENGTH, MARKED BY CONTINUED FISCAL SURPLUSES, DECLINING DEBT AND SIZABLE PUBLIC SECTOR ASSETS

The rating affirmation also reflects the country's very robust government finances compared with most peers, underpinned by its strong economic performance and prudent fiscal policies. Luxembourg's fiscal metrics remain healthy and stable. The general government fiscal balance has been in surplus since 2011, averaging 1.3% of GDP between 2011 and 2018. The central government recorded a fiscal surplus for the first time in 10 years in 2018 due to the significant improvements in public finances since the global crisis through rigid control of public spending, as well as government revenues boosted by the strong economic situation. Together with sustained surpluses for social security funds and local governments, the general government surplus reached 2.4% of GDP in 2018, the highest since 2008.

The state budget for 2019 is using some of the fiscal space in order to prepare for future challenges, and the government projects a general government surplus of €632 million (1% of Moody's estimated GDP) for 2019, down from a surplus of €1.4 billion (2.4% of GDP) in 2018. Key measures in the budget include significant investments in areas such as housing, education, research, digitalization, transport infrastructure and sustainable energy. From January 2019, the minimum social wage was increased by 100 euros net per month. The corporate income tax (CIT) rate was lowered by one percentage point to 17%, and the income bracket to which the reduced rate of 15% applies was widened to €25,000 from €175,000. Measures being implemented to promote compliance with climate commitments include the increase in excise duties on diesel and gasoline.

Moody's expects general government surpluses to average around 1.3% of GDP over the coming years until 2023. This will support a continued decline in the general government debt ratio, which Moody's expects to fall below 20% of GDP by 2020, from 21.4% at the end of 2018. The government's balance sheet is also supported by large holdings of assets. Reserves in the Compensation Fund to provide funding for future pension benefits amounted to 33% of GDP at the end of 2018. The government also holds stakes in several commercial and non-commercial companies, which it values at approximately 10% of GDP. Even excluding these presumably less liquid assets, the government's financial assets exceed its gross debt levels.

That said, the most recent aging report by the European Commission (EC) highlights significant long-term sustainability challenges as demographic pressures rise. The EC projects that Luxembourg will experience the largest increase and to have the highest level of pension expenditures as a share of GDP in the EU by 2070, reaching 18% of GDP, almost double the current level.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that downside risks to the credit profile, such as exposure to Brexit, ongoing changes in global and EU-wide tax regulations, global trade tensions, or high leverage of the private sector are mitigated by the very high degree of economic resilience, significant fiscal space, the sovereign's institutional capacity to manage shocks, and expected further policy action to address long-term economic and fiscal challenges stemming from demographic change.

In addition, exposure to event risks are low. Very small financing needs and the sovereign's strong market access at very low cost limits government liquidity risks, while the persistent current account surplus of around 5% of GDP and strongly positive net international investment positive of close to 45% of GDP support Moody's view of very low external liquidity risks, despite the large volatility observed in financial account flows. While private sector debt is very high and the banking system very large, in its baseline scenario Moody's does not see an elevated likelihood of additional contingent liabilities from the banking system crystallizing on the government's balance sheet.

WHAT COULD MOVE THE RATING DOWN

Downward pressure on Luxembourg's Aaa rating would arise if Moody's were to observe a large increase in the government's debt burden and associated significant deterioration in debt affordability metrics. Luxembourg's debt level is low relative to peers, but the country's small size somewhat limits its ability to take on significant quantities of additional debt compared to larger and more diversified economies.

Additionally, downward pressure on the rating could emerge in the unlikely scenario of political risks in the euro area fully materializing, thus threatening the stability of the monetary union. In this case, Moody's would expect an adverse impact on Luxembourg's growth outlook, and therefore its economic strength, which in turn could weigh on fiscal strength via reduced revenues. Similarly, any resulting increase in global financial volatility could put pressure on the country's cross-border financial sector, thereby increasing susceptibility to event risk.

GDP per capita (PPP basis, US$): 106,705 (2018 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 2.6% (2018 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.9% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 2.4% (2018 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 4.7% (2018 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: Very High level of economic resilience

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 28 August 2019, a rating committee was called to discuss the rating of the Luxembourg, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/ framework, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer's susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign Bond Ratings published in November 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

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.

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.

Steffen Dyck
VP - Senior Credit Officer
Sovereign Risk Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Yves Lemay
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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