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 changes FirstEnergy's outlook to negative; affirms FirstEnergy Solutions and Allegheny Energy Supply

26 Feb 2013

New York, February 26, 2013 -- Moody's Investors Service today affirmed the ratings for FirstEnergy Corp. (FE: Baa3 senior unsecured) and its regulated utility subsidiary, Jersey Central Power and Light Company (JCP&L: Baa2 senior unsecured) but changed their respective rating outlooks to negative from stable. Separately, Moody's affirmed the long-term ratings of FE's competitive generating subsidiaries, FirstEnergy Solutions Corp. (FES: Baa3 senior unsecured) and Allegheny Energy Supply Company, LLC (AE Supply: Baa3 senior unsecured). The rating outlooks for FES and AE Supply remain stable.

Lastly, Moody's placed the ratings of FE's two rated transmission businesses, Trans-Allegheny Interstate Line Company (TrAILCo: A3 senior unsecured) and American Transmission Systems, Inc. (ATSI: Baa1 senior unsecured) under review for possible downgrade. The review is prompted by FirstEnergy Transmission, LLC (FET: not rated), an intermediate transmission holding company whose primary subsidiaries are TrAILCo and ATSI, materially leveraging itself by fully borrowing under a $1.0 billion revolving credit facility.

Today's actions do not affect any of FE's other rated subsidiaries.

"The change in FE's outlook to negative reflects the headwinds facing the consolidated entity, including increased debt, weakened key financial metrics and reduced financial flexibility," said Moody's Vice President Scott Solomon. "Drivers for the headwinds include weak operating results at FE's competitive generating subsidiaries and the impact of Hurricane Sandy, which caused an estimated $900 million of damage, largely at JCP&L" added Solomon.

"The negative outlook for JCP&L reflects balance sheet pressure resulting from Sandy and increased regulatory risk due to claims that the utility has been earning unreasonable returns and criticism around service restoration efforts in the aftermath of Sandy," says Moody's Solomon.

The affirmation of the ratings of FES and AE Supply considers the commitment FE has made to reduce these combined entities' debt by a minimum of $1.5 billion, or 20%, by year end in an effort to improve their positioning within their current ratings.

"While there is event risk associated with the company's strategy to de-lever FES/AE Supply's balance sheet, we expect FE would likely issue equity capital should proceeds from expected transactions aimed at generating the $1.5 billion of proceeds fall short," said Solomon.

RATINGS RATIONALE: FE

Moody's estimates that FE's consolidated adjusted debt at year-end 2012 stood at approximately $23 billion, almost $1 billion more than expected previously and up from approximately $21.6 billion at year-end 2011. The increase in consolidated debt levels was driven in part by storm damage caused by Sandy, which required debt funding and consumed seasonal cash flow generated during the fourth quarter that otherwise would have been used to reduce short-term debt. Moreover, Moody's estimates FE's consolidated key financial metrics to have weakened in 2012, with consolidated CFO pre-W/C to debt of approximately 13%, retained cash flow to debt of 9% and interest coverage of 3.7 times, compared to 17%, 13% and 4.1 times in 2010, the year prior to its merger with Allegheny Energy, Inc. (no longer rated).

The estimated key financial metrics for 2012 include the aftermath of Hurricane Sandy on FE's consolidated operating cash flows. Excluding this impact, consolidated key financial metrics would still be slightly lower than 2011's financial metrics of 14.4% consolidated CFO pre-W/C to debt, 10.3% retained cash flow to debt and 3.7 times interest coverage.

To maintain its current ratings, Moody's would expect FE to achieve key consolidated financial metrics of CFO pre-WC to debt of at least 15%, retained cash to debt of 11% and interest coverage of 3.8 times on a sustainable basis. These specific levels take into consideration FE's consolidated risk profile and the financial performance and rating levels of its peers. While these metrics appear attainable, to achieve them the company will likely need to receive a constructive regulatory outcome in New Jersey, sustain reductions in its operating costs, generate increased sales from its unregulated businesses and tightly manage its consolidated debt levels. Signs over the near-term that FE will be unable to meet these criteria would likely result in a downgrade.

RATING RATIONALE: JCP&L

JCP&L expects to issue up to $750 million of long-term debt in 2013, proceeds from which will be used to repay short-term debt incurred to fund service restoration costs primarily incurred during 4Q2012. As a result, JCP&L's adjusted leverage will have increased by approximately 30% relative to pre-Sandy levels which has pressured the utility's key financial metrics that have historically positioned the company firmly in the Baa2-rating category.

JCP&L filed a rate case with the New Jersey Board of Public Utilities (BPU) in December requesting a $31.5 million rate increase based on an 11.5% ROE request and a 53.8% equity capital ratio. In February 2013, JCP&L updated the filing to incorporate recovery of Sandy-related costs by increasing its requested rate increase to approximately $113 million. The Division of Rate Counsel in New Jersey has asserted that JCP&L was earning an unreasonable return; as such, the BPU intends to assure that JCP&L's rates are just and reasonable as part of the current rate case. The BPU is expected to issue its order late in fourth quarter 2013.

A rating downgrade at JCP&L could be triggered by signs that JCP&L will face a more challenging regulatory environment while it tries to recover Sandy's storm and other costs. This could include a sizable rate reduction if the BPU determines the utility has been over-earning, or if JCP&L is unable to recover its Sandy-related costs in a reasonable and timely manner. Because FE is highly dependent on JCP&L (Moody's estimates that approximately 20% of total distributions received from its utility subsidiaries in 2012 were sourced from JCP&L), a downgrade of JCP&L could also potentially trigger a downgrade of FE.

RATING RATIONALE: FES and AE Supply

The affirmation of FES and AE Supply considers FE's stated financial objective of reducing the debt at the combined entities by a minimum of $1.5 billion, or approximately 20%, by year-end. Moody's estimates FES/AE Supply's year-end 2012 adjusted debt level stood at approximately $7 billion.

Proceeds from a proposed asset transfer and asset sales, both of which FE intends to close prior to year-end, are to facilitate the debt reduction. To that end, FE filed a generation transfer request with the West Virginia Public Service Commission that involved its vertically integrated Monongahela Power Company (MP: Baa3, stable) acquiring AE Supply's 80% ownership in the Harrison Power Station at book value (approximately $1.2 billion). The transfer would result in MP having sole ownership in the 1,984 megawatt fully- scrubbed coal plant and placing it into its rate base. As part of the transaction, MP would sell its 8% ownership in the Pleasants Plant to AE Supply. MP would fund the transaction with a combination of debt and equity provided by FE which could potentially net AE Supply $1.1 billion.

Separately, FE has announced its intention to sell up to 1,181MW's of pumped storage hydro generating capacity. These generation assets include AE Supply's approximate 24% ownership (660MW's) in the 2,775 Bath County Pumped Storage Hydro facility located in Virginia and FES' sole ownership of the 450 MW Pennsylvania-based Seneca Pumped Storage Generating Station.

Today's rating affirmation of FES/AE Supply also takes into consideration the event risk associated with the closing of these proposed transactions. Moody's would expect FE to issue common equity should the net proceeds from the proposed transactions result in less than $1.5 billion of debt reduction. FE has committed to issuing up to $300 million in common equity in 2013.

Moody's expects the $1.5 billion debt reduction to significantly improve FES/AE Supply's positioning within its current Baa3 rating category. Specifically, Moody's expects the combined FES/AE Supply entity to achieve key financial metrics of CFO pre-W/C to debt and retained cash flow to debt in excess of 19% and interest coverage in excess of 4.5 times annually during the three-year period 2014-2016, levels we view as generally appropriate for the current rating level.

A notable credit strength of FES and AE Supply, and a distinction from some peers, is that FE's regulated subsidiaries have historically been the only providers of dividends to the parent company, enabling FES and AE Supply to retain all of their operating cash flow for internal investment or for debt reduction. Moody's expects this approach to continue.

The affirmation of FES and AE Supply's ratings also consider management's intention of effectively merging FES and AE Supply by providing unconditional cross guarantees between the two separate legal entities prior to year-end.

Failure to achieve the $1.5 billion debt reduction at FES/AE Supply by year-end with proceeds from the combination of the asset transfer, asset sales or an offering of FE common equity has the potential to pressure FES/AE Supply's ratings. Moreover, failure to achieve the financial metrics outlined above could result in Moody's re-evaluating the company's rating or outlook.

RATING RATIONALE: TrAILCo and ATSI

The review for possible downgrade at TrAILCo and ATSI is driven by FirstEnergy Transmission, LLC (FET: not rated), an intermediate holding company, $1.0 billion borrowing under a $1.0 billion revolving credit facility, proceeds from which FET largely loaned to affiliates within the FE-family.

As the only subsidiaries and source of cash flow for FET, TrAILCo and ATSI's ratings do not currently reflect FET's $1.0 billion borrowing. The review for possible downgrade will take into consideration FE's refinancing plan for FET, the extent to which borrowings under the revolving credit facility should be considered permanent capital and the credit impact on TrAILCo and ATSI.

Issuer: FirstEnergy Corp

..Ratings Affirmed:

LT Issuer Rating, Baa3

Senior Unsecured Rating, Baa3

Senior Unsecured Bank Credit Facility, Baa3

..Outlook Actions:

Outlook, Changed to Negative from Stable

Issuer: Jersey Central Power & Light Company

..Ratings Affirmed:

LT Issuer Rating, Baa2

Senior Unsecured Rating, Baa2

Preferred Stock, Ba1

Backed Senior Secured, A3

..Outlook Actions:

Outlook, Changed to Negative from Stable

Issuer: FirstEnergy Solutions Corp.

..Ratings Affirmed:

LT Issuer Rating, Baa3

Senior Unsecured Bank Credit Facility Rating, Baa3

Backed Senior Unsecured, Baa3

Issuer: Allegheny Energy Supply Company, LLC

..Ratings Affirmed:

Backed Senior Unsecured, Baa3

Ratings Placed Under Review for Downgrade:

Issuer: Trans-Allegheny Interstate Line Company

LT Issuer Rating, A3

Senior Unsecured Rating, A3

..Outlook Actions:

Outlook, Changed to Rating Under Review -- Down from Stable

Issuer: American Transmission Systems, Inc

Senior Unsecured Rating, Baa1

..Outlook Actions:

Outlook, Changed to Rating Under Review -- Down from Stable

The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009, and Regulated Electric and Gas Utilities published in August 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

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.

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.

Scott Solomon
Vice President - Senior Analyst
Infrastructure Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

William L. Hess
MD - Utilities
Infrastructure Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's changes FirstEnergy's outlook to negative; affirms FirstEnergy Solutions and Allegheny Energy Supply
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