Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [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 ratings of six Chinese coal-fired power generation companies following change in methodology

 The document has been translated in other languages

26 Mar 2020

Hong Kong, March 26, 2020 -- Moody's Investors Service has today affirmed the ratings of six Chinese coalfired generation companies (gencos) and their rated subsidiaries following a change in the methodology it uses to analyse these companies.

The outlook on all ratings are maintained.

Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_206110 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

Please click on this link http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_206110 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

Principal Methodologies

Local Market Analyst

"The rating affirmation reflects our expectation that the credit profiles of most rated coal-fired gencos in China will continue to support their ratings during the transition to a predominantly market-based tariff regime," says Ivy Poon, a Moody's Vice President and Senior Analyst.

"However, business and financial risk will likely increase for the gencos under the market-based tariff regime, especially as China's economy slows amid the impact of the coronavirus pandemic globally," adds Poon.

Given the transition to a market-based tariff regime, Moody's has changed the applicable rating methodology used to rate each of the six coal-fired gencos to "Unregulated Utilities and Unregulated Power Companies" published in May 2017 from "Regulated Electric and Gas Utilities" published in June 2017.

The change in methodology is driven by the increasing exposure of coal-fired gencos to market-based pricing, particularly since the implementation of a new coal fired tariff mechanism on 1 January 2020.

Moody's expects the credit impact on the six rated coal-fired gencos will be manageable as the new tariff mechanism -- if executed as planned -- will remove delays in passing through tariff adjustments, thereby reducing margin volatility.

Prolonged delays in tariff adjustment and the inability to pass through coal price increases in a timely manner were major weaknesses of the previous regulated tariff mechanism.

Nonetheless, while the share of market-based sales has been rising since China gradually opened its power generation market in 2016, tariffs under the new mechanism are lower than the current regulated tariffs, reducing profit margins for most gencos. In 2019, market-based power sales accounted for close to 40% of national power consumption.

Moreover, the gencos' increasing exposure to market-based power sales raises business risk and volatility. Moody's expects national power demand will slow to between flat to low single digit growth in 2020 from 4.5% in 2019, given the weaker economic conditions in China. The resultant intensifying market competition will pressure tariffs, particularly between coal fired and renewable energy, as the latter enjoys priority of dispatch.

Accordingly, Moody's has recalibrated the rating tolerance levels of these rated coal-fired gencos to reflect the increased risk stemming from the market-base tariff regime.

That said, most rated coal-fired gencos hold strong market positions to withstand the increase in market competition, while their reducing financial capacity resulting from slowing power demand and margin compression will be partly compensated by the declining coal prices. As such, Moody's expects the rated coal-fired gencos' financial profiles will continue to support their current ratings over the next 12-18 months.

The negative outlook for Beijing Energy Holding Co., Ltd.'s (BEH A3 negative) reflects Moody's consideration that the company's credit profile will weaken over the next 12-18 months, because the new investment in Panda Green Energy Group Limited (Caa1 stable) further raises BEH's already weakly positioned financial leverage.

The outlook could return to stable if BEH is able to integrate the new investment and achieve operational synergies, and its adjusted funds from operations (FFO) interest cover and FFO/debt improve to above 2.5x and 7.5% respectively on a sustained basis.

Positive rating movement is unlikely given the negative rating outlook.

The rating could be downgraded if (1) the likelihood of support for the company decreases; (2) adverse policy changes by the government hurt the company's business or financial risk profile; or (3) its credit profile weakens, such that adjusted FFO interest cover falls below 2.5x and FFO/debt falls below 7.5% on a sustained basis.

The stable outlooks for the remaining five rated coal fired gencos reflect (1) the consideration that these companies' BCAs or standalone credit profiles are appropriately positioned at their current levels, (2) Moody's expectation of continued support from their respective parent companies or owner governments, and (3) Moody's expectation that the transition to a predominantly market based tariff regime in China's power sector will have a mostly manageable impact on credit metrics.

China Huadian Corporation LTD.'s (CHD, A2 stable) upward rating potential is limited, given the very high level of government support already incorporated into the rating.

The company's BCA could be upgraded if (1) it deleverages successfully, such that its adjusted FFO/debt exceeds 13.5% or its debt/capitalization falls below 65% on a sustained basis, or (2) we see continuation of a predictable and supportive regulatory regime over time.

Moody's would downgrade CHD's ratings if the company's BCA weakens because of a material deterioration in its business or financial profile, without any material change in the support assessment.

The BCA could be downgraded because of (1) adverse changes in China's regulatory environment (including tighter emissions standards for coal-fired units), (2) further aggressive debt-funded expansions or mergers, or (3) a significant rise in the level of risk for CHD's business profile from the development of its overseas and coal-mining operations.

Credit metrics indicative of downward pressure on the company's BCA include adjusted FFO/debt below 6% or debt/capitalization above 80% for a prolonged period.

CHD's ratings could also be under downgrade pressure, without downgrading its BCA, if the central government support weakens.

China Resources Power Holdings Co., Ltd's (CR Power, Baa2 stable) standalone credit profile could be improved if (1) the company improves its financial profile to the extent that its adjusted funds from operations (FFO) interest cover exceeds 4.0x-5.0x and retained cash flow (RCF)/debt exceeds 15%-20%, both on a sustained basis; or (2) there is proven timely cost pass-through tariff adjustment mechanism and an improvement in the regulated environment for coal-fired power producers.

CR Power's rating could be upgraded if the support from the central government or China Resources (Holdings) Co., Ltd. (CRH) becomes stronger, aided by CR Power's greater strategic importance.

The company's rating could be downgraded if its standalone credit profile deteriorates, such that (1) the company takes on aggressive debt-funded expansion projects or acquisitions; or (2) there are adverse regulatory changes in the coal-fired power sector, or both.

Credit metrics that indicate a deterioration in CR Power's standalone credit profile include adjusted FFO interest cover below 2.5x and RCF/debt below 10%, both on a sustained basis.

The company's rating could be downgraded if the support from the central government or CRH weakens in the event that CR Power's strategic importance to its support provider diminishes.

Shanghai Electric Power Company Limited's (SEP, Baa2 stable) rating could be upgraded over time if the company improves its financial profile, such that adjusted FFO/debt rises above 15.5% on a sustained basis.

The rating could be downgraded if SEP's standalone credit profile deteriorates, or in case of a material change in its strategic importance to State Power Investment Corporation Limited (SPIC, A2 stable). The company's standalone credit profile will come under downward pressure if there are changes in China's regulatory environment that adversely affect SEP's profitability, or if SEP pursues further debt-funded expansion or acquisitions that weaken its financial and business profile.

The metrics that Moody's would consider for a downgrade include FFO/debt deteriorating below 7.5% on a consistent basis.

A downgrade of SPIC's rating by one notch would not have an immediate impact on SEP's final rating if SEP maintains its standalone credit quality, because the three-notch uplift incorporated in SEP's ratings will remain unchanged in such a scenario.

SPIC's upward rating potential is limited, given the very high likelihood of government support already incorporated into the rating. However, the company's BCA could be upgraded if (1) it successfully deleverages, such that its FFO/debt exceeds 7.5% or its debt/capitalization falls below 65% on a sustained basis; or (2) Moody's sees a more supportive regulatory regime over time.

SPIC's issuer rating could be downgraded if (1) we believe that central government support will weaken; or (2) the company's standalone credit profile deteriorates as a result of (a) material adverse changes due to market liberalization or changes in the regulatory environment, (b) further aggressive debt-funded expansions or mergers, or (3) a significant rise in business risks stemming from its development of nuclear technology or overseas operations.

Financial metrics that could lead to a downgrade include FFO/debt below 5% or debt/capitalization above 85% for a prolonged period.

Zhejiang Provincial Energy Group Co. Ltd's (ZEG, A2 stable) rating could be upgraded if the likelihood of support for ZEG increases or ZEG's BCA improves significantly, or both.

ZEG's BCA would be upgraded if (1) there is a material improvement in the regulatory framework; or (2) the company improves its financial profile, such that its funds from operations (FFO)/interest coverage exceeds 6.0x and FFO/debt exceeds 25.5% on a sustained basis.

The rating could be downgraded if the likelihood of support for ZEG decreases. The BCA could be lowered if (1) ZEG takes on more aggressive debt-funded capital spending; or (2) the company's credit profile weakens substantially because of adverse changes in the regulatory environment.

Because of the high likelihood of support, ZEG's rating is resilient to a weakening in its BCA. Accordingly, a downgrade in the BCA to baa3 may not necessarily lead to a rating downgrade, assuming the likelihood of government support remains high.

Credit metrics that could indicate downward pressure on the company's BCA include adjusted FFO/interest coverage falling below 4.0x and FFO/debt falling below 15.5% for a prolonged period.

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.

Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entities are participating and the rated entities or their agent(s) generally provide Moody's with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody's Policy for Designating Non-Participating Rated Entities.

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

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

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.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Ivy Poon
Vice President - Senior Analyst
Project & Infrastructure Finance
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Terry Fanous
MD-Public Proj & Infstr Fin
Project & Infrastructure Finance
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

No Related Data.
© 2020 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/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S 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 INVESTORS SERVICE 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 INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. 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 JPY250,000,000.

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

​​​​​​​​
Moodys.com