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 concludes review on SC Citadele Banka and Siauliu Bankas

17 Jun 2015

Actions conclude methodology-related review

London, 17 June 2015 -- Moody's Investors Service has today concluded its rating reviews on SC Citadele Banka (Citadele) and Siauliu Bankas, AB (Siauliu). These reviews were initiated on 17 March 2015 following the publication of Moody's new bank rating methodology (see "Rating Methodology: Banks," 16 March 2015, available at moodys.com) and include revisions in Moody's government support assumptions for Citadele Banka only.

Moody's has affirmed SC Citadele Banka's b3 baseline credit assessment (BCA), its b3 adjusted BCA and the Not-Prime short-term deposit ratings and upgraded its long-term deposit ratings to B1 from B2. The outlook on the long term rating has been changed to positive. Moody's has also assigned Ba3(cr)/NP(cr) long- and short-term Counterparty Risk Assessments (CR Assessments) to the bank.

Moody's has affirmed Siauliu Banka's b1 BCA, its b1 adjusted BCA, and the Not-Prime short-term deposit ratings and upgraded its long-term deposit ratings to Ba2 from B1. The outlook on the long-term rating is stable. Moody's has also assigned Ba1(cr)/NP(cr) long- and short-term CR Assessments to Siauliu Bankas.

For more information on the new bank rating methodology, please see Moody's press release at https://www.moodys.com/research/Banks--PBC_179038.

The full list of affected ratings is provided at the end of the press release.

RATINGS RATIONALE

The new methodology includes a number of elements that Moody's has developed to help accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution. These new elements capture insights gained from the crisis and the fundamental shift in the banking industry and its regulation.

In terms of the application of the new methodology to these two Baltic banks, Moody's rating actions reflect (1) Moody's view of Citadele's "Moderate" and Siauliu's "Strong-" macro profiles; (2) the banks' improving financial fundamentals, mainly strengthening profitability and decreasing problem loans, balanced against weak capitalisation and a limited track-record of good profitability; (3) the protection offered to senior creditors by substantial volumes of bail-in-able securities, as captured by Moody's Advanced Loss Given Failure (LGF) liability analysis; and (4) a reduction in Moody's view of the likelihood of government support, which only impacts Citadele as Siauliu's ratings had not previously incorporated government support uplift.

1) Macro profiles

Siauliu Bankas "Strong-" macro profile is based on the macro conditions within Lithuania (A3 stable), as all the bank's lending is to customers in that country.

Citadele Banka's "Moderate" macro profile reflects the bank's much broader geographical coverage, as it collects deposits from multiple countries. In determining the macro profile, Moody's bases its analysis on Citadele's liabilities, around half of which are in Latvia to which Moody's assigns a country macro profile of "Moderate". A quarter of the liabilities (mainly deposits) are from other European Union member-countries. The remaining liabilities are from Commonwealth of Independent States (CIS) countries.

2) Improving financial performance

--Siauliu

Siauliu has gradually strengthened its profitability since the 2008/09 financial crisis. Moody's calculates that higher net interest income (NII) has driven a return on equity (ROE) of 7.3% for 2014 compared with 4.8% ROE three years earlier. NII increased to $54.6 million in 2014 compared with $22.1 million in 2011, according to Moody's calculations. High impairment charges of $22.8 million in 2014, as per Moody's calculations, mean that Siauliu's profitability is constrained. However, Siauliu's impairment charges decreased by around half in Q1 2015 compared with the same period a year earlier.

Capitalisation is a key weakness for Siauliu, with a reported 12.7% capital adequacy ratio at 31 March 2015. Weak capitalisation stems from the 2008-09 financial crisis that resulted in a severe economic downturn in all Baltic countries. However, economic growth has since been strong in Lithuania and Moody's forecasts 3.4% real GDP growth for 2016. This is likely to result in a gradual lowering of problem loan levels. Total reported past-due loans decreased to EUR64.0 million at 31 March 2015 compared with EUR84.3 million at year end-2014.

--Citadele

Citadele has also consistently strengthened its financial performance since it was founded five years ago (as a "good bank" following the failure of Parex Banka). Stronger net interest income ($83.0 million for 2014 compared with $60.8 million in 2011) and slightly higher fee income meant that reported ROE reached 16.8% at 31 March 2015, compared with a loss of 21.6% in 2010. In addition, over the next five years, Moody's believes that the bank's profitability will be supported by gradually lower impairment charges as the proportion of problem loans slowly decreases on the back of Moody's 3.2% real GDP forecast for Latvia in 2016. Moody's calculates that problem loans, as a proportion of gross loans, gradually decreased to 12.3% at year end-2014 from 15.1% four years earlier.

Capitalisation is a key weakness for Citadele, which reported a capital adequacy ratio of 12.0% at 31 March 2015. The bank was majority owned by the Latvian government until 20 April 2015 (the EBRD still hold 25% minus one share of Citadele), and public ownership meant that Citadele was prohibited from building capital in excess of 50 basis points above the regulatory minimum. However, that restriction no longer applies, owing to the recent privatisation (the government's stake was bought by a group of investors led by the private equity company Ripplewood Advisors LLC, based in the US (Aaa stable)). In addition, in association with the privatisation, the owners injected EUR10 million into the bank in addition to re-organising Citadele's subordinated debt. These measures strengthened the bank's regulatory capital by almost EUR19 million, thus strengthening the capital adequacy ratio by approximately one percentage point, according to Citadele.

3) Advanced LGF analysis

Both Latvia and Lithuania are members of the EU and, given the implementation of the Bank Recovery and Resolution Directive (BRRD), Moody's applies its Advanced LGF analysis to banks' liability structures in both of these countries. This analysis results in a "Very Low" loss given failure for long-term deposits of both Siauliu and Citadele, taking into account the protection offered by the banks' sizeable volumes of junior deposits combined with some bail-in-able subordinated debt, thus more than offsetting the negative impact of less likely government support for Citadele.

4) Lower likelihood of government support

Moody's has lowered its expectations about the degree of support that a government might provide to banks in Latvia and Lithuania. The main trigger for this reassessment is the introduction of the BRRD. However, a decline in expected loss assumptions under the new LGF framework offsets the impact of less likely government support.

Following the introduction of the BRRD, Citadele is less likely to benefit from government support. Hence, Moody's has removed the one notch of government support from Citadele's deposit ratings. The ratings assigned to Siauliu do not benefit from government support.

RATIONALE FOR OUTLOOKS

Moody's has assigned a positive outlook to Citadele. Following its privatisation the bank is no longer prohibited from accumulating capital in excess of 50 basis points above the regulatory minimum. The bank's owners have already signalled their willingness to strengthen Citadele's capitalisation by injecting EUR10 million into the bank. In addition, Moody's has calculated that the bank's problem loans have gradually decreased to 12.3% at year end-2014 from 15.1% at year end-2011, and expect this trend to continue as Latvian real GDP is likely to grow by 3.2% in 2016.

Moody's has assigned a stable outlook to Siauliu owing to the stable operating environment in Lithuania which is the underlying driving force for why Moody's expects the bank's financial performance to be stable over the coming one to three years.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Citadele's deposit ratings could come under upward pressure if (1) capitalisation strengthens, (2) problem loan levels decrease, (3) profitability remains at current adequate levels, and (4) the bank is able to defend its franchise given the competition from Baltic subsidiaries of Nordic banks. A weakening of any of the above measures and/or a smaller cushion of outstanding bail-in-eligible debt could result in a downgrade of Citadele's ratings.

Siauliu's deposit ratings could also come under upward pressure if (1) capitalisation strengthens, (2) problem loan levels decrease, (3) profitability continues to strengthen, and (4) the bank is able to defend its franchise given the competition from Baltic subsidiaries of Nordic banks. A weakening of any of the above measures and/or a smaller cushion of bail-in-eligible debt could result in a downgrade of Siauliu's ratings.

ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS

Moody's has assigned Ba3(cr)/NP(cr) long and short-term CR Assessments to Citadele and Ba1(cr)/NP(cr) long- and short-term Counterparty Risk Assessments (CR Assessments) to Siauliu.

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

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

The CR Assessments of Citadele and Siauliu are positioned, prior to government support, three notches above the banks' Adjusted BCAs, based on the cushion against default provided to the senior obligations represented by the CR Assessment by subordinated instruments. The main difference with Moody's Advanced LGF approach used to determine instrument ratings is that the CR Assessment captures the probability of default on certain senior obligations, rather than expected loss, therefore Moody's focus purely on subordination and take no account of the volume of the instrument class.

The CR Assessments do not benefit from any government support, in line with our support assumptions on deposits and senior unsecured debt for these banks. This reflects our view that operating activities and obligations reflected by the CR Assessment are unlikely to benefit from any support provisions from resolution authorities to senior unsecured debt or deposits.

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

LIST OF AFFECTED RATINGS

..Issuer: SC Citadele Banka

....LT Deposit Rating, Upgraded to B1 Positive from B2 Ratings Under Review

.... ST Deposit Rating, Affirmed NP

.... Adjusted Baseline Credit Assessment, Affirmed b3

.... Baseline Credit Assessment, Affirmed b3

.... Counterparty Risk Assessment, Assigned Ba3(cr)

.... Counterparty Risk Assessment, Assigned NP(cr)

....Outlook, Changed To Positive From Rating Under Review

..Issuer: Siauliu Bankas, AB

....LT Deposit Rating, Upgraded to Ba2 Stable from B1 Ratings Under Review

.... ST Deposit Rating, Affirmed NP

.... Adjusted Baseline Credit Assessment, Affirmed b1

.... Baseline Credit Assessment, Affirmed b1

.... Counterparty Risk Assessment, Assigned Ba1(cr)

.... Counterparty Risk Assessment, Assigned NP(cr)

....Outlook, Changed To Stable From Rating Under Review

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.

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.

Jan Skogberg
Analyst
Financial Institutions 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

Sean Marion
Managing Director
Financial Institutions 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 concludes review on SC Citadele Banka and Siauliu Bankas
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