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

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

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's changes outlook on Spain's Baa2 rating to stable from positive

19 Feb 2016

London, 19 February 2016 -- Moody's Investors Service has today changed the outlook to stable from positive on Spain's government credit ratings. Concurrently, Moody's has affirmed the long-term debt and issuer ratings at Baa2 and the short-term debt rating at (P)P-2.

The key interrelated drivers of today's outlook revision are as follows:

1. The institutional improvements that the Spanish government legislated in recent years, including greater controls over regional finances and pension reform, have had a smaller impact than Moody's had anticipated when it assigned the positive outlook back in 2014. This less favourable outcome limits the potential for improvement in Spain's future fiscal position and its growth trajectory.

2. As a result, Spain's track record of meeting fiscal targets in the last few years has been mixed. Moody's expects the government to report above-target deficits this year and beyond, preventing any material reduction in the debt burden after peaking at around 100% of GDP in the near future.

3. Moody's also believes that additional material structural reforms that would be supportive of growth are unlikely to be forthcoming over the coming three to four years, irrespective of the composition of the next government.

In a related rating action, Moody's has today announced its decision to affirm the Baa2/P-2 ratings of the Fondo de Reestructuracion Ordenada Bancaria (FROB) and to change the outlook to stable from positive.

A full list of affected ratings is provided towards the end of this press release.

RATINGS RATIONALE

RATIONALE FOR CHANGING THE OUTLOOK TO STABLE FROM POSITIVE

The decision to stabilize the outlook on Spain's government bond ratings at Baa2 rather than at Baa1 balances the negative impact of a track record of missed fiscal targets and less effective implementation of some institutional changes with little prospect of change, against the positive impact of strong real GDP growth trends in recent years, and the fiscal consolidation which that has allowed.

Moody's decision back in 2014 to assign a positive outlook to Spain's Baa2 rating reflected the rating agency's view that the recovery in the economy, together with continued structural reform, would ensure that improvements in the government's fiscal position would continue. However, while growth significantly exceeded Moody's expectations at the time that the positive outlook was assigned, the government has since continued to miss nominal fiscal targets that were set out in Spain's annual Stability Programme, a pattern that the rating agency believes is likely to continue going forward.

FIRST DRIVER: INSTITUTIONAL IMPROVEMENTS HAVE HAD A SMALLER IMPACT

The first driver of Moody's decision to stabilize the outlook on Spain's Baa2 government bond rating is the increasing clarity that institutional improvements legislated in recent years have had a smaller impact than was anticipated. Spain enacted significant reforms during the euro area sovereign debt crisis to address fragilities in the banking sector, the public finances, and the macro economy.

Some of these reforms have borne fruit: the banking system has stabilized and is in a better position to support the domestic economy; labour market reform has paved the way for more competitive unit labour costs; and the deficit is being reduced from the high levels seen at the peak of the crisis. This progress was a key driver of Moody's decision in February 2014 to upgrade the Spanish rating to Baa2 from Baa3 and to assign a positive outlook.

However, some important reforms that the Spanish government has legislated have either not yet been fully implemented, or have not achieved what was anticipated. For example, while the central authorities have substantial leverage over the regions in theory, in practice the central authorities have generally chosen not to use this leverage. Implementation of the market unity law, which came into force in September 2014 and which is intended to address regulatory fragmentation that is caused by Spain's highly decentralized political structure, has been extremely slow at both the national and regional level. Moreover, Spain's social security funds continue to pose a threat to its public finances: although the government passed pension reforms in 2013, these reforms have had little impact in a low-inflation environment.

Looking ahead, the momentum behind further reform has faltered against the backdrop of a heavy election calendar in 2014 (European Parliament elections) and 2015 (municipal, regional, and national elections) and above-trend growth, and appeared to remove the sense of urgency behind macro reform.

SECOND DRIVER: MISSED FISCAL TARGETS LEAD TO A FURTHER INCREASE IN DEBT-TO-GDP RATIO

Spain's recent growth performance has materially exceeded Moody's expectations: in 2014 Moody's expected only 1.5% growth in 2015, whereas preliminary data indicates that the Spanish economy has emerged from a deep and prolonged recession and registered 3.2% growth in that year. Moody's expects growth to slow somewhat to a still-healthy2.8% growth rate in 2016, and slowly decelerate thereafter, falling to below 2% by the end of this decade.

However, despite the stronger-than-expected growth, fiscal outcomes have been worse than expected. Although deficits have declined, nominal and structural deficit targets are being missed. While real GDP growth has surprised on the upside, Moody's believes that Spain missed its 2015 Stability Programme fiscal target of 4.2% of GDP by a significant margin of 0.8 percentage points, extending a track record of missed fiscal targets over the last several years. Moreover, Spain is non-compliant with its structural deficit target: its structural fiscal deficit is likely to have weakened in 2015 to -2.5% from -1.7% (according to European Commission calculations) and will remain near this weaker level though 2017.

This fiscal underperformance is due to the performance of the social security administration and regional governments. As noted above, pension reforms have not achieved their objectives in a low-inflation environment, though a positive impact of the measures may well be observed over the long term. The deviations from target in the Spanish regions have materialized in spite of the additional leverage that the central government has acquired over the regions and in spite of the significant savings on interest costs (since most regions now borrow at the same rate as the central government).

The emerging prospect of a reversal in the Spanish debt trajectory, and of a sustained fall in debt thereafter, had been a key component of Moody's rationale for assigning a positive outlook on the Baa2 rating in 2014. Despite the tailwind that Spain's economic growth has provided, the debt-to-GDP ratio remains very high, and Moody's forecasts it to increase further to around 100% of GDP in the near future. However, given the rating agency's expectations for future deficit reduction, Moody's now believes that the debt burden will stabilize at around its current level and that any declines in the debt burden will be small at best.

THIRD DRIVER: FURTHER SIGNIFICANT REFORMS ARE UNLIKELY IN THE NEXT 3 TO 4 YEARS

Although Spain's economic and fiscal challenges remain substantial, the country is unlikely to implement additional significant reforms, which has negative implications for future growth and debt trends. In part, this is because the sense of urgency behind fiscal and economic change has dissipated due to the economic recovery and an absence of market pressure. In addition, the fragmented political constellation that emerged from the parliamentary elections on 20 December 2015 is not conducive to a renewed acceleration in Spain's reform momentum.

The December elections resulted in a highly fractured parliament, with no party winning a majority and the prospect of a majority government being formed proving to be highly challenging. No matter how the current political impasse is resolved, and regardless of the composition of future governments, Moody's believes there is little sign that there will be agreement within the governing group on further economic and fiscal reforms because pro-reform political forces lack critical mass in parliament to legislate such actions. The political environment is likely to be highly fragmented for the next 3-4 years, and further reform momentum will be slow or non-existent.

RATIONALE FOR THE AFFIRMATION OF THE Baa2 RATING

Moody's decision to maintain and affirm Spain's Baa2 rating reflects the country's economic strength, which balances its position as one of the largest economies in the world against its still-significant macroeconomic imbalances and only moderate medium-term growth outlook. While Spain's growth performance is currently among the strongest in the euro area, Moody's believes that this performance is more cyclical than structural. The rating agency also forecasts that Spain's medium-term growth potential is below 2% given the high levels of structural unemployment, adverse demographics, and the need for ongoing private-sector deleveraging.

The Baa2 rating also reflects Spain's institutional strength, taking into account its earlier track record of implementing a significant amount of structural reform, balanced against more recent challenges in this area. It also reflects the large increase in debt since 2007 and Moody's assessment that this debt burden will remain high over the rating horizon.

Spain's Baa2 rating also incorporates several sources of susceptibility to event risk, including (1) elevated domestic political risk; (2) high funding needs against the backdrop of a demonstrated susceptibility to adverse shifts in investor sentiment; and (3) a banking system whose weaker institutions will contend with legacy asset quality issues and low-quality capital for years to come.

WHAT COULD MOVE THE RATING UP/DOWN

Any positive movement in Spain's rating or outlook will likely be driven by a combination of factors, but the critical consideration will be the strength of the government's commitment to the fiscal and economic changes needed to achieve a sustainable fall in the country's debt burden. Any such commitment is likely to be evidenced by stronger-than-expected economic growth, accompanied by reductions in Spain's structural fiscal deficit, robust implementation of fiscal and macroeconomic reforms, and execution against nominal fiscal targets, as enumerated in the government's annual Stability Programme. Moody's would ultimately expect such a positive scenario to be reflected in sustained and meaningful reductions in Spain's debt burden.

Moody's would consider changing Spain's rating outlook to negative or downgrading its rating if there were to be further fiscal slippage, leading to a later stabilization of Spain's public debt ratio at a higher level. A reversal of reforms that have been legislated in recent years would also place downward pressure on Spain's rating. A re-emergence of elevated financial and debt market stress would also be credit negative. Although highly unlikely at this point in time, an increasing probability that Catalunya would secede from Spain would also be negative for the Spanish sovereign rating given the size and economic importance of the region for Spain overall.

COUNTRY CEILINGS

Spain's local and foreign-currency bond and deposit ceilings remain at Aa2. Spain's short-term foreign-currency bond and bank deposit ceilings remain at Prime-1 (P-1).

GDP per capita (PPP basis, US$): 33,835 (2014 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 1.4% (2014 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): -1% (2014 Actual)

Gen. Gov. Financial Balance/GDP: -5.9% (2014 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 1% (2014 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: High level of economic resilience

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

On 16 February 2016, a rating committee was called to discuss the rating of the Spain, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/framework, have materially decreased. The issuer's fiscal or financial strength, including its debt profile, has materially decreased.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2015. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

LIST OF AFFECTED RATINGS

Issuer: Government of Spain

..Affirmations:

....LT Issuer Rating, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa2

....Senior Unsecured MTN, Affirmed (P)Baa2

....Senior Unsecured Shelf, Affirmed (P)Baa2

....Other Short Term, Affirmed (P)P-2

...Outlook, Changed To Stable From Positive

Issuer: Fondo de Reestructuracion Ordenada Bancaria

..Affirmations:

....BACKED LT Issuer Rating, Affirmed Baa2

....BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Baa2

....BACKED ST Issuer Rating, Affirmed P-2

...Outlook, Changed To Stable From Positive

REGULATORY DISCLOSURES

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

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

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

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

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

Sarah Carlson
Senior Vice President
Sovereign Risk Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Yves Lemay
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

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

Moody's changes outlook on Spain's Baa2 rating to stable from positive
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.

​​​​
Global Footer | Moody's