Global Header | Moody's
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 Namibia's Ba1 ratings; maintains negative outlook

07 Dec 2018

London, 07 December 2018 -- Moody's Investors Service ("Moody's") has today affirmed the Ba1 long-term issuer and senior unsecured ratings of Government of Namibia and maintained a negative outlook.

The affirmation of the Ba1 rating reflects Namibia's gradually improving medium-term growth prospects and moderate wealth levels that support the economy's shock absorption capacity. Some areas of relative strength in the country's institutions, with recently continued adherence to fiscal consolidation objectives through a challenging economic and financial environment, also support the Ba1 rating.

The decision to maintain the negative outlook reflects Moody's concern that the government will not be able to address the vulnerability to shocks which the structure, level and trajectory of Namibia's debt burden, creates. Such shocks might include subdued growth in South Africa, lower than expected Southern African Customs Union (SACU) revenue, a shock to commodity prices and/or a marked and prolonged tightening in external financing conditions including renewed depreciation of the South African rand. While the government has maintained its fiscal consolidation objectives, progress towards these objectives and the related strengthening of the country's fiscal institutions has been limited so far, leaving Namibia's credit profile exposed to economic and financial shocks.

Namibia's long-term local currency bond and bank deposit ceilings are unchanged at A2. The long-term foreign currency bank deposit ceiling is unchanged at Ba2, and the long-term foreign-currency bond ceiling is also unchanged at Baa2.

RATINGS RATIONALE

RATIONALE FOR AFFIRMING THE Ba1 RATING

GRADUALLY IMPROVING MEDIUM-TERM GROWTH PROSPECTS, DESPITE STRUCTURAL CHALLENGES

Moody's expects GDP growth of 1% in 2019, ending several quarters of contraction. Over the medium term, as the weight of the earlier significant tightening of fiscal policy on growth diminishes, and as the South African economy gradually recovers, Moody's expects Namibia's GDP growth to rise towards its potential rate of around 3.5%. Combined with income levels above $10,000 in GDP per capita terms (at purchasing power parity), this will support the economy's shock absorption capacity.

Growth prospects are supported by developments in a range of sectors. The move up the value chain particularly in the diamond industry is likely to continue, supporting productivity and GDP growth. Meanwhile, assuming that some of the infrastructure deficiencies are addressed, in particular airport capacity, parts of the untapped potential of the tourism sector will be realized. Moreover, given its location on the Atlantic and its recent expansion, the Walvis Bay Port will provide an impetus for promoting Namibia as a logistics sector and attracting some of the traffic from other ports in the Southern African region.

Notwithstanding these growth prospects, Namibia faces structural economic challenges, including high unemployment and skills shortages which will continue to weigh on economic strength.

MODERATE INSTITUTIONAL STRENGTH BALANCES SOME AREAS OF STRENGTH AND WEAKNESSES IN INSTITUTIONAL AND POLICY EFFECTIVENESS

Namibia's adherence to the rule of law and control of corruption are relatively strong, in the 57.5 and 62.1 percentile of Moody's rated sovereigns respectively. These features enhance the effectiveness of the country's institutions by providing a transparent and predictable environment to businesses and individuals.

The sovereign's institutional strength is also supported by the pegged exchange rate arrangement that promotes stable price competitiveness with South Africa, Namibia's largest trade partner. The arrangement also contributes to stable inflation at moderate levels by preventing sharp swings in the cost of imported goods.

These areas of strength balance some marked institutional weaknesses in particular in the capacity of the government to prevent a build-up of debt in the public sector. As a result of these deficiencies, the pegged exchange rate has, at times, resulted in a pro-cyclical monetary policy stance.

Recently, notwithstanding very weak growth in South Africa and turbulent global financial markets with pressure on the South African rand, the government has so far maintained its fiscal consolidation objective. So far, its efforts have not prevented the continued slow rise in the government's debt burden, or succeeded in altering the composition of the debt burden to lessen the exposure to external shocks. Greater success sustained through economic and financial cycles will enhance the credibility and effectiveness of fiscal policy, a relative weakness of Namibia's credit profile.

In support of the government's fiscal objectives, Namibia has embarked on a series of reforms aimed at improving macroeconomic governance that seeks to address key credit challenges such as rising government expenditures and volatile revenue. To maximize revenue, the government has established the Namibia Revenue Agency (NAMRA) to streamline the existing Inland Revenue service and the customs and excise department. It has also implemented an integrated tax system and proposed changes to the tax law in order to boost the tax take. Moreover, the government has established a Ministry of Public Enterprises to centralise the monitoring of state owned enterprises (SOEs), increase the transparency of their operations and prevent the materialization of contingent liabilities.

Some of these reforms are at a very early stage, often still being designed. Their implementation will be complex and any credit benefits will, if realized, only materialize over a period of time.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Namibia's persistent vulnerability to a range of shocks that would weigh on revenue, increase financing costs and, as a result, weaken fiscal strength and raise liquidity and external vulnerability risks.

FISCAL CONSOLIDATION CHALLENGES PERSIST DESPITE LOWER LIQUIDITY PRESSURE

The government plans a gradual fiscal consolidation, with the deficit narrowing to 4.5% of GDP in FY2018-19 (the year ending in March 2019) and 4.0% for FY2019-20, from 5.0% of GDP in FY2017-18 and a peak at 8.3% in FY2015-16. In the absence of shocks, Moody's estimates that such a fiscal consolidation path is achievable. Combined with improving but still moderate nominal GDP growth, it would slow but not halt the increase in the debt burden, to around 46.7% of GDP in FY2019-20 from 42% in FY2017-18.

At these levels, the debt burden is higher than the median level for Ba1-rated sovereigns (32.9% in 2017). A relatively broad revenue base and moderate overall cost of debt supports debt affordability. Moody's estimates that interest payments absorbed around 8.9% of revenue in 2017, comparable to the median level of 9.3% for Ba1-rated sovereigns. However, consolidation at the projected pace would not quickly remove the sovereign's vulnerability to a range of potential negative developments that would weigh on revenue and/or raise financing costs.

First, Namibia is and will, in the absence of faster consolidation, remain vulnerable to lower SACU revenue (about one third of total revenue) than currently assumed by the government and Moody's.

Second, and related to SACU revenue, with about 20% of exports shipped to South Africa, Namibia's economic environment remains closely tied to that of its main trading partner. Moody's expects a gradual increase in GDP growth in South Africa but the significant challenges it faces in achieving sustained robust growth point to downside risks that would spill over and dampen Namibia's government revenue.

Third, government revenue is also partly linked to commodity prices. The royalties and income from the diamond sector and from other mineral ores provide a source of revenue for the government that is vulnerable to production or price shortfalls.

While the government plans several measures to improve revenue generation capacity and tax administration, including establishing a new revenue agency planned for 2019, the effectiveness of these measures in raising revenue in a stable growth and commodity price environment and in improving the resilience of revenue to weaker growth and prices developments is untested.

Meanwhile, a large wage bill which accounts for around 50% of government expenditure constrains the government's capacity to cut spending and restore fiscal consolidation should revenue collection be lower than currently expected.

Moreover, Namibia's fiscal outlook is vulnerable to a tightening in financing conditions, in particular external financing conditions, potentially resulting from turbulent global financial markets. Renewed and persistent downward pressure on the South African rand, and the Namibian dollar which is pegged to it, would raise the burden of US dollar-denominated debt which Moody's currently estimates to be around 11.4% of GDP as of 2017.

Should prospects of slower fiscal consolidation dent the confidence of domestic banks in macroeconomic stability, the cost of financing domestic debt, including a large stock of T-bills (11.6% of GDP in October, 2018) would rise and rapidly weaken debt affordability.

EXTERNAL VULNERABILITY RISKS HAVE DIMINISHED BUT REMAIN

The current account deficit has narrowed significantly in the past year, to 6.1% of GDP in 2017 from 15.8% one year earlier. There has been a structural improvement founded on a fall in construction-related imports as a result of tighter fiscal policy. Moody's expects the current account deficit to hover around 4-5% of GDP. At these levels, the deficit will be largely financed by net foreign direct investment inflows. Combined with some debt inflows, Moody's projects broadly stable foreign exchange reserves at $2-2.5 billion.

While these developments point to somewhat reduced external vulnerability risks, such risks remain. In particular, Namibia's foreign exchange reserves cover around 4.8 months of imports as of June 2018, which provides only a modest buffer to a shock to export revenue. A commodity price shocks and/or production shortfalls would lead to a renewed widening in the current account deficit and foreign exchange reserves erosion to low levels.

WHAT COULD CHANGE THE RATING UP

The negative outlook indicates that an upgrade is unlikely in the foreseeable future.

Moody's would likely change the outlook to stable should confidence in the resilience of Namibia's credit profile to shocks increase. This would result from significant fiscal measures and strengthening of the institutions that would place the debt burden on a clear and marked downward trajectory and enhance fiscal flexibility to respond to negative economic or financial developments. Such measures would likely involve improved revenue generation and a marked reduction in the public sector wage bill leading to a narrower fiscal deficit and greater fiscal space. Institutional improvements that enhance revenue collection and bolster the credibility and effectiveness of the government's fiscal consolidation objectives would support improved fiscal strength.

Evidence of a sustainably narrower current account deficit through higher competitiveness and export revenue, raising foreign exchange reserves buffers would also support a stable outlook.

WHAT COULD CHANGE THE RATING DOWN

Moody's would likely downgrade Namibia's rating should the scope for a policy response that would effectively shore up Namibia's government finances and liquidity position in the event of an increase in financing costs and/or prospects of weaker revenue diminish further. Evidence that fiscal consolidation was insufficient to prevent the debt burden from continuing to rise would be particularly negative for the rating. However, Namibia's heightened exposure to financing shocks reflects not just the increase in the level of debt seen in recent years, but, relatedly, the significant foreign currency component of government debt. The absence of measures to address at least one of those weaknesses, either by placing the debt burden on a clear and marked downward trajectory and/or by reducing materially the reliance on foreign currency debt, would imply sustained exposure to financing shocks which would also be negative for the rating.

A sustained decline in foreign currency reserves that threatened reserves adequacy would also put downward pressure on the rating.

GDP per capita (PPP basis, US$): 11,229 (2017 Actual) (also known as Per Capita Income)

Real GDP growth (% change): -0.9% (2017 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 5.2% (2017 Actual)

Gen. Gov. Financial Balance/GDP: -5.0% (2017 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -6.1% (2017 Actual) (also known as External Balance)

External debt/GDP: 56.5% (2017 Actual)

Level of economic development: Moderate level of economic resilience

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

On 3 December 2018, a rating committee was called to discuss the rating of Government of Namibia. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, institutional strength/ framework, and fiscal and financial strength have not materially changed. The issuer's susceptibility to event risk has marginally improved.

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

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

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

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

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

Kelvin Arthur Dalrymple
VP - Senior Credit Officer
Sovereign Risk Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Marie Diron
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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.
Global Footer | Moody's