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 assigns Counterparty Risk Assessments to 17 Korean financial institutions; affirms junior obligation ratings

 The document has been translated in other languages

12 Jun 2015

NOTE: On June 19, 2015, the press release was corrected as follows: At the end of the first sentence, added “and their branches.” After the list of assigned CR Assessments, added the following: “Moody’s also has assigned CR Assessments to the following branches: Aa3(cr)/ P-1(cr) to Korea Development Bank London Branch, P-1(cr) to Korea Development Bank New York Branch, Aa3(cr) to Korea Development Bank Singapore Branch, P-1(cr) to Woori Bank London Branch.” Revised release follows.

NOTE: On June 12, 2015, the press release was corrected as follows: Under the RATINGS AFFECTED section, the second item listed for Kookmin Bank was changed from “Basel II-compliant subordinated MTN rating affirmed at (P)Baa2” to “Basel II-compliant junior subordinated MTN rating affirmed at (P)Baa2”. Revised release follows.

Hong Kong, June 12, 2015 -- Moody's Investors Service has assigned long- and short-term Counterparty Risk Assessments (CR Assessments) to 17 Korean financial institutions and their branches.

This announcement follows the publication of Moody's new bank rating methodology published on 16 March 2015 (see "Banks," http://www.moodys.com/viewresearchdoc.aspx?docid=PR_320662).

Moody's has assigned CR Assessments of:

- Aa3(cr)/P-1(cr) to Hana Bank, Industrial Bank of Korea, Kookmin Bank, Korea Development Bank, KDB Asia Ltd., Korea Exchange Bank, Korea Securities Finance Corporation, NongHyup Bank and Woori Bank

- A1(cr)/P-1(cr) to Busan Bank, Citibank Korea Inc, Daegu Bank, Ltd., Kyongnam Bank and Suhyup Bank

- A2(cr)/P-1(cr) to Jeju Bank and Kwangju Bank Ltd.

- A3(cr)/P-2(cr) to Jeonbuk Bank

Moody’s also has assigned CR Assessments to the following branches: Aa3(cr)/ P-1(cr) to Korea Development Bank London Branch, P-1(cr) to Korea Development Bank New York Branch, Aa3(cr) to Korea Development Bank Singapore Branch, P-1(cr) to Woori Bank London Branch.

Moody's has also affirmed the junior obligation ratings of Hana Bank, Kookmin Bank, Korea Exchange Bank and Suhyup Bank. Their Baseline Credit Assessments (BCAs) and Adjusted BCAs remain unchanged.

Moody's has withdrawn the outlooks on all junior instrument ratings for its own business reasons. Please refer to Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.

A full list of the affected ratings can be found at the end of this press release.

RATINGS RATIONALE

RATIONALE FOR COUNTERPARTY RISK ASSESSMENTS

CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than expected loss; and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (eg, swaps), letters of credit, guarantees and liquidity facilities.

The CR Assessment takes into account an issuer's standalone strength as well as the likelihood of affiliate and government support in the event of need, reflecting the anticipated seniority of these obligations in the liabilities hierarchy. The CR Assessment also incorporates other steps authorities can take to preserve the key operations of a bank should it enter a resolution.

For the 17 Korean financial institutions, the CR Assessment is positioned, prior to government support, at one notch above the Adjusted BCA and therefore above senior unsecured and deposit ratings, reflecting Moody's view that its probability of default is lower than those of senior unsecured debt and deposits. Moody's believe that senior obligations represented by the CR Assessment will be more likely preserved in order to limit contagion, minimize losses and avoid disruption of critical functions.

For these Korean institutions, the CR Assessments also benefit from one to seven notches of government support, in line with Moody's support assumptions on deposits and senior unsecured debt. This reflects Moody's view that any support provided by governmental authorities to a bank, which benefits senior unsecured debt or deposits, is very likely to benefit operating activities and obligations reflected by the CR Assessment as well, consistent with Moody's belief that governments are likely to maintain such operations as a going-concern in order to reduce contagion and preserve a bank's critical functions.

However, in cases where the banks' senior unsecured debt and deposit ratings are rated Aa3 -- which is on par with Korea's (Aa3 positive) sovereign debt rating -- Moody's has also assigned a CR Assessment of Aa3(cr).

RATIONALE FOR AFFIRMED RATINGS

For the affirmed junior securities ratings, the rationale for the affirmation is the continuation of their key credit metrics; weak but stable asset quality, sound capitalization despite weak profitability, as well as stable funding and liquidity profiles.

For the affirmed Basel II-compliant junior securities ratings, we see a moderate to government-backed probability of support, resulting in a one- to seven-notch uplift, although Moody's generally assesses the probability of government support for a bank's junior obligations as low. This considers Korea's demonstrated willingness and fiscal capacity to provide support, in combination with its existing bank resolution regime.

For the affirmed Basel III-compliant junior securities ratings, we believe that potential government support is low and the ratings do not include any related uplift. As Korea does not have an operational bank resolution regime, we apply a basic loss given failure approach in rating Korean banks' junior securities.

Hana Bank's Basel III-compliant subordinated debt/subordinated medium-term note (MTN) ratings are positioned at Baa2(hyb)/(P)Baa2, one notch below the bank's baa1 Adjusted BCA, reflecting a low level of government support. Although this is technically contractual loss-absorbing non-viability subordinated debt, our rating approach is consistent with how we rate subordinated debt where loss absorption is achieved via statutes rather than contracts.

Kookmin Bank's Basel II-compliant junior securities MTN ratings receive a one-notch uplift, resulting in its subordinated MTN rating at (P)Baa1 and its Basel II compliant junior subordinated MTN rating at (P)Baa2, reflecting a moderate level of government support.

Korea Exchange Bank's Basel II-compliant subordinated debt rating receives a one-notch uplift, resulting in a Baa1 rating, reflecting a moderate level of government support. In contrast, its Basel III-compliant subordinated debt/subordinated MTN ratings are positioned at Baa2(hyb)/(P)Baa2, one notch below the bank's baa1 Adjusted BCA, reflecting a low level of government support.

Suhyup Bank's Basel II-compliant subordinated MTN receives a seven-notch uplift to (P)A3, reflecting "government-backed" government support level due to its designation as a policy bank.

WHAT CAN MOVE RATINGS UP/DOWN

A bank's BCA -- plus any rating uplift for affiliate support, if applicable -- is the anchor for the ratings of junior securities. Hence the ratings of junior securities can be upgraded or downgraded if their BCAs are raised or lowered.

For Hana Bank, its BCA could be raised if (1) its Tangible Common Equity capital ratio (TCE) exceeds 14.0%; or (2) the three-year average ratio of its net income to tangible assets exceeds 1.5%, without a deterioration in its asset quality. Its BCA could be lowered if: (1) its TCE capital ratio falls below 12.0%; (2) its annual net income to tangible assets ratio falls below 0.3% due to a sharp increase in credit losses; or (3) its problem loans to gross loans ratio rises above 3.0%.

For Kookmin Bank, its BCA could be raised if (1) its TCE capital ratio rises above 16%; (2) its net income to tangible assets ratio exceeds 0.6% ; or (3) its liquid resources, as measured by liquid banking assets to tangible banking assets rises above 35%. Its BCA could be lowered if (1) its TCE capital ratio falls below 12%; (2) its annual net income to tangible assets ratio falls below 0.2%, due to a sharp increase in credit losses; or (3) its problems loans to gross loans ratio rises above 3.0%.

For Korea Exchange Bank, its BCA could be raised if (1) its TCE capital ratio exceeds 14.0%; or (2) the three-year average ratio of its net income to tangible assets exceeds 1.50%, without a deterioration in asset quality. Its BCA could be lowered if: (1) its TCE capital ratio falls below 12.0%; (2) its annual net income to tangible assets ratio falls below 0.3% due to a sharp increase in credit losses; or (3) its problem loans to gross loans ratio rises above 3.0%.

For Suhyup Bank, its BCA could be raised if (1) its problem loans to gross loans ratio falls below 1.5%; (2) its net income to tangible assets ratio rises above 0.4%; and (3) its shareholder structure is reformed resulting in its TCE capital assets ratio rising above 8%. Its BCA could be lowered if (1) the bank makes no progress in rationalizing its capital structure to meet its Basel III requirements by end-2016, and which negatively affects its franchise or market confidence; (2) its problem loans to gross loans ratio rises above 4%. A downward movement in Suhyup's BCA would likely result in downgrades to all ratings.

RATINGS AFFECTED

Hana Bank (Lead analyst: Hyunhee Park)

- Basel III-compliant subordinated debt rating affirmed at Baa2(hyb)

- Basel III-compliant subordinated MTN rating affirmed at (P)Baa2

- BCA and Adjusted BCA unchanged at baa1

Kookmin Bank (Lead analyst: Sophia Lee)

- Basel II-compliant subordinated MTN rating affirmed at (P)Baa1

- Basel II-compliant junior subordinated MTN rating affirmed at (P)Baa2

- BCA and Adjusted BCA unchanged at baa1

Korea Exchange Bank (Lead analyst: Hyunhee Park)

- Basel II-compliant subordinated debt rating affirmed at Baa1

- Basel III-compliant subordinated debt rating affirmed at Baa2(hyb)

- Basel III-compliant subordinated MTN rating affirmed at (P)Baa2

- BCA and Adjusted BCA unchanged at baa1

Suhyup Bank (Lead analyst: Sophia Lee)

- Basel II-compliant subordinated MTN rating affirmed at (P)A3

- BCA and Adjusted BCA unchanged at ba3

The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

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 rating action on the support provider and in relation to each particular 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 rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The following information supplements Disclosure 10 ("Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7") in the regulatory disclosures made at the ratings tab on the issuer/entity page on www.moodys.com for each credit rating as indicated:

Moody's was not paid for services other than determining a credit rating in the most recently ended fiscal year by the person(s) that paid Moody's to determine this credit rating.

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 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.

Sophia Lee
Vice President - Senior Analyst
Financial Institutions Group
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
SUBSCRIBERS: (852) 3551-3077

Stephen Long
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (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
SUBSCRIBERS: (852) 3551-3077

Moody's assigns Counterparty Risk Assessments to 17 Korean financial institutions; affirms junior obligation ratings
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