info

Yes No
Moodys.com
Terms of Use
REGULATORY AFFAIRS
CAREERS
DIVERSITY & INCLUSION
.
ABOUT US
.
CONTACT US
HOME
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
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
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 to negative on Fortis

05 Mar 2008
Moody's changes outlook to negative on Fortis

London, 05 March 2008 -- Moody's Investors Service announced today that it had affirmed all of the ratings of Fortis and has changed the rating outlook to negative from stable on Fortis SA/NV, Fortis NV (both with issuer ratings at Aa3), and all of their main operating subsidiaries (bank deposits at Aa2, BFSR at B-, and IFSR at Aa3). Please refer to the rating list below for further details.

Commenting on the outlook change, Moody's noted the combination of the recent deterioration of the group's capital position and financial flexibility, as well as the potential for further capital markets-led pressures. "The negative outlook reflects Moody's expectation of a challenging recovery in the short to medium term of Fortis Group's underlying credit fundamentals, in the context of an uncertain macro-economic environment, a major integration initiative for the group with the acquired ABN AMRO businesses, and potential additional depreciation to certain of Fortis' pressurised assets" said Jose Morago, Moody's Assistant Vice-President/Analyst and lead analyst for Fortis Group.

In terms of the Group's financial flexibility, Moody's said that in its view this had deteriorated recently, in the context of the hybrid raising initiatives to support the capitalisation of the banking operations as well as the funding of the ABN acquisition. As a result, compared to historical levels, Fortis' financial leverage and fixed charge coverage are likely to be over Moody's expectation for the rating levels in the short to medium term. Moody's added that any further capital markets-induced pressures, for instance further writedowns of structured assets, would add to these pressures. Furthermore, Moody's noted the significant increase of the group's hybrid usage, whereby hybrid capacity will be nearly exhausted in the short-term.

With reference to the Fortis Bank ratings, Moody's said that in line with the stress tests that it is applying to financial institutions with important CDO exposures, it had reviewed Fortis Bank's exposures to this asset class. While Fortis' stressed marks are considered broadly adequate, the rating agency said that in line with its analysis for financial institutions, it had taken a conservative view of the potential need for additional write-downs given the continued challenging market conditions. "The negative outlook reflects Moody's opinion of the prospect for additional impairments and reduced recurring earnings given the important revenue contributions from the bank's merchant banking activities. The negative outlook also reflects the weakened capitalisation of the bank both in terms of quality and absolute levels", said Lynn Exton, Senior Vice President and lead analyst for Fortis Bank. Moody's said that it views a Tier 1 ratio in line with the bank's target of 7%, excluding the impact of the capital raised to finance the acquisition of ABN AMRO and calculated on a Basel 1 basis, as an appropriate level for Fortis Bank to remain within its present rating category. If the Tier 1 ratio were to be broadly below the target level of 7% level on a Basel 1 basis and net of the impact from the ABN AMRO financing, for a prolonged period, the bank's ratings would be under additional negative pressure.

Regarding the Group's insurance ratings, Moody's noted that even though the underlying fundamentals of the insurance operations have not changed materially in the last few months, the outlook change reflects the potential for pressure on capitalisation levels and financial flexibility of the insurance ratings, in the context of the bank's/group's needs. It also reflects the level of integration of insurance with the bank/group, in terms of capital management, risks management and asset management, and thus potential contagion risk.

Regarding the ABN AMRO acquisitions Moody's noted that despite the good strategic rationale of the transaction, in the context of the challenges above, the integration of ABN AMRO operations represent an additional burden on the group's ratings in the short to medium term.

Moody's also affirmed and maintained a positive outlook on the A3 IFSR of FICA, the group's life insurance subsidiary headquartered in Hong Kong, considering that there are no material changes in the company's fundamentals or the level of implicit support from the parent Fortis Group. The positive outlook continues to reflect our expectation that FICA's business and financial profile will improve over the medium-term due to changes made to its operations following its ownership and involvement of Fortis Group in Asia.

Moody's added that the negative rating outlook on Fortis' main operating entities could return to stable in the event of improvements to Fortis' risk profile, capital position and financial flexibility in the next 12 to 18 months. Specifically, strong operating results for 2008 consistent with limited write downs on structured assets, a strong capital replenishment consistent with a banking Tier I ratio of at least 7% and consolidated financial leverage no higher than the low 30s could result in an outlook change to stable. On the other hand, further deterioration in or a sustained weakness in capital position and financial flexibility could result in a rating downgrade in the short-term.

The last rating action on Fortis was in November 2007 when Moody's assigned rating to Fortis' CASHES.

Headquartered in Brussels, Belgium and in Utrecht, the Netherlands, Fortis Group had total assets of EUR 775.2 billion and reported shareholders' equity (including minority interest) of EUR 21.6 billion as of 31 December 2006.

The following ratings were affirmed with a negative outlook:

Fortis SA/NV, Issuer Rating, Aa3

Fortis NV, Issuer Rating, Aa3

Fortis Finance NV, guaranteed senior debt, Aa3

Fortis Finance NV, guaranteed subordinated debt, A1

Fortis Hybrid Financing, guaranteed preferred debt, A2

Fortis Utrecht NV, guaranteed senior debt, Aa3

Fortis Utrecht NV, guaranteed subordinated debt, A1

Fortis Floating Rate Capital Funding Trust, guaranteed preferred debt, A2

Fortis Fixed Rate Quarterly Capital Funding Trust, guaranteed preferred debt, A2

Fortis Fixed Rate Annual Capital Funding Trust, guaranteed preferred debt, A2

Fortis Capital Funding LP, guaranteed preferred debt, A2

Fortfinlux S.A., guaranteed equity linked securities, A2

Fortis Bank Nederland (Holding), long-term deposit and senior debt, Aa2, BFSR B-

Fortis Bank SA/NV, long-term deposit and senior debt, Aa2, BFSR B-

Fortis Banque Luxembourg, long-term deposit and senior debt, Aa2, BFSR B

Genfinance Luxembourg S.A- Aa3 guaranteed subordinated debt rating

Fortis Luxembourg Finance S.A.-Aa2 senior debt rating

Fortis Bank (Hong Kong)-Aa2 senior debt rating

Fortis Bank, New York-Aa2 senior debt rating

Fortis Bank, Cayman Islands-Aa2 senior debt rating

Fortis Insurance Belgium, Insurance Financial Strength Rating, Aa3

Fortis ASR Levensverzekering N.V., Insurance Financial Strength Rating, Aa3

Fortis ASR Schadeverzekering NV, Insurance Financial Strength Rating, Aa3

The following ratings were affirmed:

Fortis Finance NV, guaranteed Prime-1 short-term debt and CP rating

Fortis Bank Nederland (Holding),: short-term debt and deposit rating of Prime-1

Fortis Bank SA/NV: short-term debt and deposit rating of Prime-1

Fortis Banque Luxembourg: short-term debt and deposit rating of Prime-1

FB Funding Company: short-term debt rating of Prime-1

The following ratings were affirmed with a positive outlook:

Fortis Insurance Company (Asia) Ltd, Insurance Financial Strength Rating, A3

Fortis Capital (Asia) Ltd, backed senior unsecured debt rating, Baa1

London
Jose Morago
Asst Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

London
Lynn Exton
Senior Vice President
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

No Related Data.
© 2021 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 CREDIT RATINGS AFFILIATES ARE THEIR 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 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 APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S 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 $5,000,000. 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 JPY550,000,000.

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

​
Moodys.com