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
Sie sind im Begriff, von der lokalen Website für Deutschland auf die globale Website in englischer Sprache zu wechseln. Möchten Sie fortfahren?
Diesen Hinweis nicht wieder anzeigen.
Ja
Nein
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
Announcement:

Moody's changes outlook on KBC Bank's A1 long-term rating to negative

22 Nov 2011

BFSR downgraded to C-, negative outlook; short-term rating affirmed at Prime-1

Paris, November 22, 2011 -- Moody's Investors Service has today changed the outlook on KBC Bank's long-term senior debt and deposit ratings to negative from stable and has also affirmed that rating. The change in the outlook follows the downgrade of KBC Bank's bank financial strength rating (BFSR) to C- from C, now mapping to Baa1 on the long-term scale. The BFSR outlook remains negative.

The downgrade of the BFSR reflects the fact that KBC Bank's ability to repay the capital it owes to the Belgian government and the Flemish Region has decreased, due to (i) KBC's Q3 2011 losses; (ii) continued earnings instability; and (iii) deteriorating market conditions, which heighten the risk that KBC group might not be able to complete its remaining divestment program without incurring material losses.

At the same time, Moody's has affirmed KBC Group's long-term senior debt rating at A2, but changed the outlook to negative from stable, and affirmed the Prime-1 short-term ratings of both KBC Bank and KBC Group.

Moody's affirmed at Ba1(hyb) the cumulative Perpetual Debt Securities issued by KBC Bank, and at Ba3(hyb) the non-cumulative Trust Preferred Securities issued by KBC Bank Funding Trust II, III and IV. The outlook on these hybrid instruments remains stable.

For a detailed list of ratings affected, please refer to the end of the press release.

RATINGS RATIONALE

--3Q LOSSES HEIGHTEN UNCERTAINTY OVER STATE AID REPAYMENT AND EXERT PRESSURE ON THE BANK'S RATINGS

The rating agency's decision to downgrade KBC Bank's BFSR was prompted by Moody's view that KBC Group's ability to redeem by the end of 2013 the core capital securities held by the Belgian Federal Government and the Flemish Region -- while at the same time achieving an adequate capital ratio -- has further decreased due to:

(i) The group's substantial loss reported in Q3 2011, which reduces the amount that will be available to repay the government aid it has received;

(ii) The prospect of increased earnings instability over the coming quarters due to (a) the consequences of continued deterioration in the macro-economic environment, notably through increased impairments on the loan books in Ireland; and (b) the high volatility in market spreads, which is likely to continue to affect the group's results through the valuation of CDOs and the ineffectiveness of its interest-rate hedging strategy.

(iii) Deteriorating market conditions, which heighten the risks in completing the remaining divestment program without incurring material losses; this would reduce the amount of capital that could be generated through these disposals.

The rating agency has noted that KBC Group now clearly indicates that the amount of government-held hybrid securities it intends to repay by the end of 2013 is EUR7 billion, including premium, whereas the remaining balance would be redeemed after that date, and that this still complies with the agreement between KBC and the European Commission. This alleviates the financial strain on KBC compared with the potential reimbursement of the entire balance of government-held hybrids including premium (which would have exceeded EUR10 billion) by the end of 2013. Moody's nevertheless believes that the above-mentioned negative factors are likely to more than offset the positive effect of the reduced state-aid repayment objective in the designated timeframe, and that to maintain adequate capitalisation, even the payment of EUR7 billion by the end of 2013 has become challenging. The rating agency remains additionally concerned by the consequences that the potential inability to meet the agreement with the European Commission may have on the group's credit profile, notably via the imposition of further conditions. In turn, this could negatively affect KBC's diversification or franchise, in Moody's view.

At the same time, Moody's continues to recognise the bank's good fundamentals, notably its strong franchise in Belgium and the countries of Central and Eastern Europe where it operates, and its sound liquidity profile based on a stable and resilient customer deposit base, which fully funds its loan book.

Overall, Moody's believes that the challenges KBC Bank is facing are consistent with a BFSR of C-, equivalent to Baa1 on Moody's long-term rating scale. The negative outlook reflects both (i) the risk of further potential losses due to worsening macro-economic and volatile market environments which could affect the group's bottom-line profitability; and (ii) the uncertainties on the level of constraints that could be imposed by the EU Commission.

Moody's continues to factor a very high probability of external support from the Belgian Government into KBC Bank's long-term debt and deposit ratings of KBC Bank, resulting in three notches of uplift from its Baa1 standalone credit strength. This is based on the rating agency's perception of KBC Bank's importance within the Belgian retail market as evidenced by its high shares in both the domestic savings and lending markets. This support has been in evidence since 2008 through the hybrid injection and guaranty extended on the bank's exposures to CDOs. A downgrade by one notch of the BFSR would exert negative pressure on KBC Bank's long-term ratings, and as such, the negative outlook on the long-term ratings mirrors the negative outlook of the bank's BFSR.

-- KBC GROUP

KBC Group's A2 long-term debt rating is positioned one notch below that of KBC Bank and is a function of the structural subordination of the holding company relative to bank creditors, the sound profile of the group's insurance business (a sister company to KBC Bank), and the current modest level of double leverage (approximately 11% as at year-end 2010 as per Moody's estimate). The negative outlook results from the negative outlook of KBC Bank's long-term debt rating.

RATINGS SENSITIVITY

Downward pressure may be exerted on KBC Bank's BFSR from (i) a further material deterioration in the performance of its loan books in Ireland or in CEE (beyond our current expectations); (ii) an increase in corporate defaults worldwide, which could trigger further losses on CDOs; (iii) further market-spread widening, which would negatively affect the valuation of CDOs and increase the ineffectiveness of the bank's interest-rate hedging strategy; and/or (iv) other pressure on returns that could hamper KBC's ability to repay state aid without compromising its capital, diversification or franchise.

KBC Bank's long-term debt and deposit ratings would be downgraded as a result of a downgrade of the BFSR. Similarly, it could be downgraded in the event of a multi-notch downgrade of the rating of the Government of Belgium or a lower perception by Moody's of the future probability of systemic support that would extended to KBC Bank.

Downward pressure on KBC Group's long-term ratings could stem from (i) a downgrade of KBC Bank's ratings; (ii) deterioration of the insurance company's solvency; or (iii) a significant increase in double leverage.

As evidenced by the current negative outlooks, we see little prospect of an upgrade on both KBC Bank's and KBC Group's ratings, as long as state aid is not repaid.

--HYBRID AND JUNIOR SUBORDINATED DEBT RATINGS

Moody's starting point for the ratings of KBC's hybrid securities is the bank's Adjusted Baseline Credit Assessment (Adjusted BCA), i.e. Baa1. The ratings then incorporate Moody's view that, while the bank is implementing its restructuring plan and state aid has not been reimbursed, investment-grade ratings are not appropriate for these instruments, resulting in ratings below standard notching from the adjusted BCA. The following ratings were affirmed:

- The Perpetual Debt Securities issued by KBC Bank are positioned three notches below KBC Bank's Adjusted BCA at Ba1(hyb). Moody's adds that unpaid coupons are cumulative on these securities and must be settled through an alternative coupon settlement mechanism (ACSM). Coupon payments can be suspended at the bank's option.

- The non-cumulative Trust Preferred Securities issued by KBC Bank Funding Trust II, III and IV are positioned five notches below KBC Bank's Adjusted BCA at Ba3(hyb). These securities are junior to the Perpetual Debt Securities and coupons can be suspended on a non-cumulative basis at the bank's option.

KBC Group is committed to paying coupons on the capital securities held by the Belgian Federal and Flemish Regional Governments in 2011, 2012 and 2013. Since the documents of the hybrid securities issued or guaranteed by the bank contain a pusher, dividend/coupon payments on parity or more junior securities issued by either KBC Bank or KBC Group "push" hybrid coupon payments. Moody's therefore expects all coupons to be paid on hybrid securities up to and including 2013. Payments on KBC's hybrid securities were made both in 2009 and 2010 despite the group not making any payment on the governments' capital securities during this period. Nevertheless, Moody's believes that uncertainties remain regarding hybrid coupon payments made after 2013. If KBC Group is unable to repay its entire outstanding state aid package by year-end 2013, the European Commission may potentially require it to suspend hybrid coupon payments.

The outlook for both securities remains stable, as the ratings already incorporate the uncertainty regarding hybrid coupon payments after 2013.

--IMPACT ON SUBSIDIARIES

In respect of the Group's main operating units, Moody's has taken the following rating actions:

- KBC Bank N.V.'s BFSR was downgraded to C- from C, long-term deposit and senior unsecured debt ratings were affirmed at A1, and cumulative Perpetual Debt Securities issued by KBC Bank were affirmed at Ba1(hyb). The outlook on the BFSR and the long-term deposits and senior unsecured debt ratings is negative while the cumulative Perpetual Debt Securities issued by KBC Bank carries a stable outlook. The Prime-1 short-term deposit ratings were affirmed.

- KBC Group N.V.'s long-term senior unsecured debt rating and issuer rating were affirmed at A2. The outlook was changed to negative from stable. The Prime-1 short-term issuer rating was affirmed.

In respect of the Group's funding vehicles, Moody's has taken the following rating actions:

- Kredietbank North American Finance Corp's Prime-1 backed commercial paper rating was affirmed.

- KBC International Finance N.V.'s backed senior unsecured rating was affirmed at A1, backed senior unsecured MTN rating was affirmed at (P)A1, and backed subordinated MTN was affirmed at (P)A2. The outlook was changed to negative from stable for all ratings.

- KBC Bank Funding Trust II's backed non-cumulative preferred stock rating was affirmed at Ba3(hyb). The rating carries a stable outlook.

- KBC Bank Funding Trust III's backed non-cumulative preferred stock rating was affirmed at Ba3(hyb). The rating carries a stable outlook.

- KBC Bank Funding Trust IV's backed non-cumulative preferred stock rating was affirmed at Ba3(hyb) . The rating carries a stable outlook.

- KBC IFIMA N.V.'s backed senior unsecured rating was affirmed at A1, backed subordinated debt rating was affirmed at A2. The outlook was changed to negative from stable for both ratings. The Prime-1 short-term debt rating was affirmed.

- KBC Dublin Capital's Prime-1 backed commercial paper rating was affirmed.

- KBC Financial Products International Ltd's backed senior unsecured debt rating was affirmed at A1. The outlook was changed to negative from stable. The Prime-1 short-term debt and commercial paper ratings were affirmed.

- KBC Financial Products International VI Ltd's backed senior unsecured debt rating was affirmed at A1. The outlook was changed to negative from stable.

Moody's says that any potential impact of this rating action on the Group's other subsidiaries will be considered separately.

PRINCIPAL METHODOLOGIES

The methodologies used in this rating Bank Financial Strength Ratings: Global Methodology published in February 2007, Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007, and Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt published in November 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 relevant 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 relevant 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 relevant 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.

The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

Information sources used to prepare the rating are the following : parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a 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.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

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.

Yasuko Nakamura
Vice President - Senior Analyst
Financial Institutions Group
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's changes outlook on KBC Bank's A1 long-term rating to negative
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.

​​​​​​​​