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
Related Issuers
ABANCA Corporacion Bancaria, S.A.
Banca March S.A.
Bancaja Emisiones, S.A. Unipersonal
Banco Bilbao Vizcaya Argentaria, S.A.
Banco Bilbao Vizcaya Argentaria, SA London Br
Banco Bilbao Vizcaya Argentaria, SA Paris Br
Banco Bilbao Vizcaya Argentaria,SA, New York
Banco Cooperativo Espanol, S.A.
Banco de Credito Local de Espana, S.A.
Banco Espanol de Credito, S.A. (Banesto)
Banco Pastor, S.A.
Banco Popular Espanol, S.A.
Banco Sabadell S.A., London Branch
Banco Sabadell, S.A.
Banco Santander S.A. (Spain)
Banco Santander, S.A., London Branch
Banesto Holdings, Ltd.
Bankia, S.A.
Bankinter Emisiones, S.A. Unipersonal
Bankinter Sociedad de Financiacion, S.A.
Bankinter, S.A.
Bankoa, S.A
BBVA Capital Finance, S.A Unipersonal
BBVA Capital Funding Limited
BBVA Global Finance Ltd.
BBVA Global Markets B.V.
BBVA International Limited
BBVA International Pref S.A. Unipersonal
BBVA Senior Finance, S.A. Unipersonal
BBVA Subordinated Capital, S.A. Unipersonal
BBVA U.S. Senior, S.A. Unipersonal
BCL International Finance Limited
BPE Capital International Limited
BPE Finance International Limited
BPE Financiaciones, S.A.
BPE Preference International Limited
Caixa Finance B.V.
CaixaBank, S.A.
Caja de Ahorros de Valencia, C y A. (Bancaja)
Caja de Ahorros y Monte de Piedad de Madrid
Caja Laboral Popular Coop. de Credito
Caja Rural de Navarra
Caja Vital Finance B.V.
CAM Global Finance
CAM Global Finance, S.A. Sociedad Unipersonal
CAM International Issues, SA Sociedad Unipers
Catalunya Banc SA
Caymadrid International Ltd.
CECABANK S.A.
Emisora Santander Espana S.A.U
Fundacion Bancaria, la Caixa
Ibercaja Banco SA
Kutxabank, S.A.
Liberbank
Pastor Particip. Preferent., S.A. Unipersonal
Popular Capital Europe B.V.
Popular Capital, S.A.
Popular Finance Europe B.V.
Santander Central Hispano International Ltd
Santander Central Hispano Issuances Ltd.
Santander Commercial Paper, S.A. Unipersonal
Santander Consumer Bank AS
Santander Consumer Bank S.p.A.
Santander Consumer Finance S.A.
Santander Finance Capital, S.A. Unipersonal
Santander Finance Preferred, S.A. Unipersonal
Santander International Preferred, S.A.U.
Santander International Products PLC
Santander Int'l Debt, S.A. Unipersonal
Santander Issuances S.A. Unipersonal
Santander Perpetual, S.A. Unipersonal
Santander US Debt, S.A. Unipersonal
Unicaja Banco
Rating Action:

Moody's concludes reviews on 20 Spanish banks' ratings

17 Jun 2015

Actions follow conclusion of methodology-related reviews and revision of government support considerations

On January 04, 2016, the press release was corrected as follows: In the fifth paragraph of the REGULATORY DISCLOSURES section, changed the unsolicited credit ratings disclosure to: “The ratings of rated entities ABANCA Corporacion Bancaria, S.A., Bancaja Emisiones, S.A. Unipersonal, Caymadrid International Ltd. and Bankia, S.A. were not initiated or not maintained at the request of these rated entities”. In the list of affected credit ratings accessible via hyperlink from the press release, changed the unsolicited credit ratings disclosure for ABANCA Corporacion Bancaria, S.A., Bancaja Emisiones, S.A. Unipersonal, Caymadrid International Ltd. and Bankia, S.A. and Banco Popular Espanol, S.A. to: “This rating was not initiated or not maintained at the request of the rated entity”; and added the following disclosure for Banco Popular Espanol, S.A.: “Moody’s considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody’s. On this basis, the rated entity or its agent(s) is considered to be a participating entity. The rated entity or its agent(s) generally provides Moody’s with information for the purposes of its ratings process”. Revised release follows.

Madrid, June 17, 2015 -- Moody's Investors Service has today concluded its reviews on the ratings of 20 banks in Spain. The reviews were initiated on 17 March 2015 (see press release at https://www.moodys.com/research/--PR_321005), following the publication of Moody's new bank rating methodology and revisions to its government support assumptions for these banks.

In light of the new banking methodology, Moody's rating actions generally reflect the following considerations (1) the "Moderate +" macro profile of Spain (Baa2 positive); (2) the improved outlook for banks' core financial fundamentals based on the strengthening operating environment; (3) the protections offered to depositors and senior creditors as assessed by Moody's Advanced Loss Given Failure (LGF) analysis, reflecting the benefit of instrument volume and subordination protecting creditors from losses in the event of resolution; and (4) Moody's view of a decline in the likelihood of government support for all Spanish banks.

Among the rating actions that Moody's has taken on the Spanish banks are the following:

- 12 long-term bank deposit ratings upgraded, one affirmed, five confirmed and two downgraded

- Five short-term bank deposit ratings upgraded, 12 affirmed and three confirmed

- Eight bank senior unsecured debt ratings upgraded, two confirmed and two downgraded

- Two short-term bank senior unsecured debt ratings upgraded and seven affirmed

- Six baseline credit assessments (BCAs) upgraded, 13 affirmed and one confirmed

Moody's has also assigned Counterparty Risk (CR) Assessments to 20 Spanish banking groups and their branches, in line with its new bank rating methodology.

Moody's has assigned stable outlooks to the deposit and issuer/debt ratings of all affected banks, with the exception of positive outlooks assigned to Banco Santander S.A. (Santander), Santander Consumer Finance S.A. (SCF), Catalunya Banc S.A., Abanca Corporacion Bancaria S.A. (Abanca) and Caja Rural de Navarra (CRN) and a negative outlook to Ibercaja Banco S.A. (Ibercaja).

Moody's has withdrawn the outlooks on all junior instrument ratings and subordinated debt ratings for its own business reasons. Please refer to Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.

Outlooks, which provide an opinion on the likely rating direction over the medium term, are now assigned only to long-term deposit and issuer/senior unsecured debt ratings.

Please click on this http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_182392 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

Please refer to this link for the new methodology: http://www.moodys.com/viewresearchdoc.aspx?docid=PR_320662

RATINGS RATIONALE

The new methodology includes several 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.

(1) THE "MODERATE+" MACRO PROFILE OF SPAIN

Spanish banks' operations have a strong domestic focus, with the exception of Banco Santander, Banco Bilbao Vizcaya Argentaria S.A. (BBVA) and SCF. As such, their performance is highly influenced by Spain's large, diversified and affluent economy, which displays a sustained improvement in economic growth, as well as moderate susceptibility to event risk. Therefore, these banks have a Macro Profile of "Moderate +", in line with that of Spain.

Banco Santander, BBVA and SCF display very large geographic diversification and therefore are exposed to macro variables across various countries and regions. Since a substantial amount of their exposures are in countries with stronger macro-economic conditions, their Macro Profiles are in the "Strong-" to "Strong+" categories, which is higher than that of Spain.

(2) IMPROVING CORE FINANCIAL FUNDAMENTALS

The Spanish banks' BCAs (median at ba2) reflect their high level of problematic exposures, although improving macroeconomic conditions are translating into a gradual improvement in asset-risk trends. Furthermore, very low interest rates and subdued business volumes constrain their revenue generation capacity, but loss-absorption capacity has improved relative to potential balance-sheet losses. Lastly, liquidity metrics have strengthened in the context of continued balance-sheet deleveraging and normalised market access.

However, the banks' BCAs range widely from caa2 to baa1, which highlight both the very large variances in financial performance, in conjunction with differences in geographic reach, and the level of problematic exposures (see below for outlines of the analytical considerations for the individual banks covered in this press release).

(3) PROTECTION OFFERED TO SENIOR CREDITORS, AS CAPTURED BY MOODY'S ADVANCED LGF LIABILITY ANALYSIS

Spanish banks are subject to the EU's Bank Resolution and Recovery Directive (BRRD), which Moody's considers to be an Operational Resolution Regime. Accordingly, Moody's applies its Advanced LGF analysis to Spanish banks' liability structures, thereby mostly applying its standard assumptions. These assumptions include a residual tangible common equity (TCE) ratio of 3%, losses post-failure of 8% of tangible banking assets, a 25% run-off in junior wholesale deposits, a 5% run-off in preferred deposits, and a 25% probability of deposits being preferred to senior unsecured debt. Because Moody's assumes that the country's deposit base is essentially retail in nature, it considers a proportion of 10% of junior deposits below the estimated EU-wide average of 26% for eight of the affected banks. The Advanced LGF analysis results generally in "very low" to "moderate" loss-given-failure for long-term junior deposits as well as senior unsecured debt ratings, reflecting the banks' substantial volume of deposit funding as well as the amount of senior unsecured debt and securities more subordinated to it.

(4) DECLINE IN THE LIKELIHOOD OF GOVERNMENT SUPPORT

Deposit and senior unsecured debt ratings now range from Caa1 to A3. In addition to the effects of the new methodology on the banks' ratings, Moody's has lowered its expectations about the degree of government support for banks in Spain. The main trigger for this reassessment is the introduction of the BRRD in the European Union in January 2015. Following Moody's revised assumptions, only six Spanish banks' ratings continue to benefit from government support. However, in some cases, the negative effect on the Spanish banks' ratings from a decline in the expectation of government support has been counterbalanced by the low loss assumptions under the new LGF framework, but for other banks it has caused a downgrade of their deposit and senior unsecured debt ratings.

OUTLOOK RATIONALE

Moody's expects that the sound recovery of the Spanish economy will support the gradual improvement of banks' asset-quality metrics and profitability. As such, almost all the Spanish banks affected by today's rating actions have a stable outlook on their deposit and senior unsecured debt ratings.

--- BANK SPECIFIC ANALYTIC FACTORS

--- Banco Santander S.A. (Santander)

The one-notch upgrade of Santander's deposit and issuer/senior unsecured debt ratings to A3 with a positive outlook, incorporates (1) the affirmation of the bank's BCA and adjusted BCA at baa1; and (2) Moody's LGF analysis that provides one notch of uplift from the bank's adjusted BCA for the deposit and senior unsecured debt ratings.

The affirmation of Santander's baa1 BCA reflects a combination of the group's (1) diverse exposure to a variety of economies reflected in a Macro Profile of "Strong"; (2) acceptable Asset Risk, reflected in a historical problem loan ratio of 5.4% and the expectation for sustained improvement for this factor; (3) modest Capital, reflected in a TCE ratio of around 8%, together with the group's proven capacity to generate capital in times of stress; and (4) improving Profitability, anticipating a recovery in earnings. Together, these scores result in a combined Solvency score of baa3 which is a constraint on the bank's BCA of baa1. The rating benefits from a relatively good funding and liquidity position, reflected in combined Liquidity score of baa1, as well as a high degree of business diversification stemming from its ample geographic diversification that results in a one-notch positive qualitative adjustment.

Under Moody's Advanced LGF analysis, Santander's long-term deposit and issuer/senior unsecured debt ratings take into account their very low loss-given-failure because of the group's high volume of subordinated and senior unsecured debt outstanding, in principle leading to a two-notch uplift respectively from the bank's baa1 adjusted BCA. These ratings are, however, capped by the sovereign's rating at one notch above the bank's baa1 adjusted BCA.

Moody's believes that there is a moderate likelihood of government support for Santander's debt and rated wholesale deposits, in the event of its failure. This probability reflects the bank's share in its domestic market and its status as global systemically important bank (G-SIB), which may lead the government to intervene in order to shield the bank from disruptive losses. This government support assessment does not, however, translate into an additional notching as Santander's BCA is already one notch higher than the sovereign rating.

Santander's deposit and senior unsecured ratings carry a positive outlook in line with Spain's government's bond rating (Baa2 positive).

--- Santander Consumer Finance S.A. (SCF)

The one-notch upgrade of SCF's deposit and senior unsecured debt ratings to A3 with a positive outlook, incorporates (1) the affirmation of the bank's BCA at baa2 and adjusted BCA at baa1; and (2) Moody's LGF analysis that provides one notch of uplift from the bank's adjusted BCA of baa1 for the deposit and senior unsecured debt ratings. Moody's continues to not incorporate any systemic support uplift into SCF's ratings, and these are therefore unaffected by the reduced government support assumptions.

The affirmation of SCF's standalone baa2 BCA reflects its strong franchise as one of Europe's leading consumer finance entities as well as its overall sound credit-risk profile, with good profitability and stabilising asset-quality indicators. The bank's standalone BCA also reflects its high -- albeit declining --reliance on wholesale funding.

Moody's believes that there is a high probability of support from its parent, Banco Santander S.A. (deposits A3 positive, BCA baa1). As a result of the support assessment, SCF's adjusted BCA is baa1, one notch above its BCA.

As a domestic subsidiary of Santander, Moody's applies the Advanced LGF analysis of its parent, in principle leading to a two-notch uplift for SCF's deposits and senior unsecured ratings from the bank's baa1 adjusted BCA. These ratings are, however, capped by the sovereign's rating at one notch above SCF's baa1 adjusted BCA.

SCF's deposit and senior debt ratings have a positive outlook, in line with that of its parent Santander.

-- Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

The two-notch upgrade of BBVA's deposit ratings to A3 and the one-notch upgrade of its issuer/senior unsecured debt ratings to Baa1, reflect (1) the affirmation of the bank's BCA and adjusted BCA at baa2; and (2) the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA for the deposit ratings and one notch of uplift for the senior unsecured debt ratings.

The affirmation of BBVA's BCA reflects a combination of the scores for the group's (1) diverse exposure to a variety of economies reflected in a Macro Profile of "Strong-"; (2) moderate Asset Risk, which reflects a historical problem loan ratio above 6% and the expectation of sustained improvement for this factor; (3) adequate Capital, which reflects a TCE ratio of 9.7% and the group's proven capacity to generate capital in times of stress; and (4) improving Profitability, which reflects Moody's expectation of a recovery in earnings. BBVA also displays a good funding and liquidity profile. Furthermore, the BCA benefits from a high degree of business diversification stemming from the bank's ample geographic diversification, which has translated into a positive qualitative adjustment of one notch.

Under Moody's Advanced LGF analysis, BBVA's long-term deposit and issuer/senior unsecured debt ratings take into account their very low and low loss-given-failure because of the group's high volume of subordinated and senior unsecured debt outstanding, leading to a two and one notch uplift, respectively, from the bank's baa2 adjusted BCA.

Moody's believes that there is a moderate likelihood of government support for BBVA's debt and rated wholesale deposits in the event of its failure. This probability reflects the bank's share in its domestic market and its G-SIB status, which may lead the government to intervene in order to shield the bank from severe losses. Moody's government support assessment does not, however, translate into an additional notching because BBVA's BCA is already at the same level as the sovereign rating.

--- Catalunya Banc, S.A.

The two-notch upgrade of Catalunya Banc's long-term deposit and senior unsecured debt ratings to B1 from B3 reflects: (1) the affirmation of the bank's caa2 BCA; (2) the upgrade of the bank's adjusted BCA to b1 from caa2 after considering parental support from BBVA; (3) the incorporation of the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA; which, together, more than offset (4) reduced government support assumptions, leading to a removal of systemic support ratings uplift.

Despite the completion of the acquisition of Catalunya Banc by BBVA in April 2015, Moody's has affirmed the bank's caa2 BCA, reflecting its weak standalone credit fundamentals. The factors constraining the BCA are primarily (1) asset-quality weaknesses across all asset classes; (2) a weak capital position according to Moody's capital assessment, owing to the large amount of deferred tax assets (DTAs); and (3) very modest profitability indicators. At the same time, Moody's believes that Catalunya Banc will benefit from a very high probability of support from its parent BBVA. As a result of Moody's affiliate support assessment, the rating agency upgraded Catalunya Banc's adjusted BCA to b1, four notches above its caa2 BCA.

Given the very recent acquisition, the rating agency bases its LGF analysis on the standalone liabilities of Catalunya Banc, thereby assuming that as long as the integration into BBVA group has not visibly progressed (at this stage, only the acquisition is complete), an (unlikely) near-term resolution of Catalunya Banc could still be performed for the bank without a detrimental effect on BBVA or its creditors. The Advanced LGF analysis therefore takes into account the moderate loss-given-failure because of Catalunya Banc's relatively low volume of respective liabilities and the amount of subordinated debt, leading to no uplift from the bank's b1 adjusted BCA.

Moody's reduced the government support assumption for Catalunya Banc to "low" upon the expected implementation of resolution legislation, leading to no government uplift for the deposit and senior unsecured debt ratings, from "high" and two notches previously.

The positive outlook on Catalunya Banc's deposit and senior unsecured debt ratings reflects Moody's expectations of its full integration into BBVA, which displays a much stronger credit profile, benefiting from its oversight and experience in restructuring and integration.

-- Caixabank S.A.

The one-notch upgrade of Caixabank's long-term deposit and issuer/senior unsecured debt ratings to Baa2 reflect (1) the confirmation of the bank's BCA and adjusted BCA at ba1; and (2) the Advanced LGF analysis that provides one notch of uplift from the bank's adjusted BCA for its issuer/senior unsecured debt and two notches of uplift for its deposit; and (3) the maintenance of one notch of government support uplift for its issuer/senior unsecured debt. Concurrently, the bank's short-term deposit and debt ratings were upgraded to Prime-2.

The confirmation of the bank's BCA is based on Caixabank's strong commitment to maintain a capital ratio above 11% at all times, post-acquisition of Portuguese Banco BPI (deposits Ba3 stable, BCA b1). Caixabank's BCA of ba1 also reflects its stable revenue-generation capacity underpinned by its leading retail franchise, strong liquidity and funding profile and Moody's expectation of a sustained improvement of its currently weak profitability and asset-quality metrics. The group's high level of problematic exposures and modest TCE are key constraints on the ba1 BCA.

Under Moody's Advanced LGF analysis, Caixabank's long-term deposit and issuer/senior unsecured debt ratings take into account their very low and low loss-given-failure because of the group's high volume of subordinated and senior unsecured debt outstanding, leading to a two and one-notch uplift, respectively, from the bank's ba1 adjusted BCA.

Caixabank's long-term deposit and issuer/senior unsecured debt ratings continue to benefit from government support leading to a one-notch uplift for its issuer/senior unsecured rating, despite Moody's revision of government support expectations to "moderate" from "high". Moody's government support assessment does not, however, translate into an additional notching for deposits because Caixabank's deposit rating is already at the same level as the sovereign rating.

-- Bankia S.A.

The one-notch upgrade of Bankia's deposit rating to Ba3 and the confirmation of its senior unsecured debt ratings at B1 , reflects (1) the upgrade of the bank's BCA and adjusted BCA to b2 from b3; (2) the Advanced LGF analysis that provides one notch of uplift from the bank's adjusted BCA for the deposit ratings and no uplift for the senior unsecured debt ratings; which, together, more than offset (3) the reduction of government support uplift to one notch from two.

The one-notch upgrade of Bankia's standalone BCA to b2 reflects the bank's weak (although improving) profitability and asset-quality metrics, and its good liquidity profile. The BCA also incorporates Bankia's very high amount of DTAs that weakens its TCE ratio, thereby limiting potential upside for the BCA. Under Moody's Advanced LGF analysis, Bankia's long-term deposit and senior unsecured debt ratings take into account their low and moderate loss-given-failure because of the group's relatively modest volume of subordinated and senior unsecured debt outstanding, leading to one and zero notches of uplift, respectively, from the bank's b2 adjusted BCA.

Bankia's long-term deposit and senior unsecured debt ratings continue to benefit from one notch of government support uplift despite Moody's revision of government support expectations to "moderate" from "high".

---Banco Sabadell S.A.

Banco Sabadell's deposit rating was upgraded by two notches to Baa3 and its senior unsecured debt ratings by one notch to Ba1. Concurrently, the bank's short-term deposit ratings were upgraded to Prime-3 while its short-term debt ratings were affirmed at Not-Prime. The rating action reflects (1) the affirmation of the bank's BCA and adjusted BCA at ba3; (2) the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA of ba3 for the deposit ratings and one notch of uplift for the senior unsecured debt ratings; and (3) the maintenance of one notch of government support uplift.

The affirmation of Banco Sabadell's standalone ba3 BCA reflects the bank's (1) resilient revenue generation capacity aided by its SME franchise and acquisitive strategy; and (2) sound liquidity profile. The bank's BCA is constrained by its weak, albeit improving, asset-quality metrics and high weight of DTAs on its capital, which results in a modest TCE ratio.

On 24 March 2015, Moody's affirmed Banco Sabadell's BCA to reflect the bank's announcement on 20 March 2015 that it had launched a cash offer for 100% of the capital of TSB Banking Group plc (TSB, unrated), based in the UK (Aa1 stable). The affirmation captured the rating agency's view that the combined entity's standalone credit profile will remain resilient after integrating TSB into Banco Sabadell.

Under Moody's Advanced LGF analysis, Banco Sabadell's long-term deposit and senior unsecured debt ratings take into account their very low and low loss-given-failure because of the group's high volume of subordinated and senior unsecured debt outstanding, leading to two notches and one notch of uplift, respectively, from the bank's ba3 adjusted BCA.

Banco Sabadell's long-term deposit and senior unsecured debt ratings continue to benefit from one notch of government support uplift, despite Moody's revision of government support expectations to "moderate" from "high".

--Banco Popular Español S.A. (Banco Popular)

The two-notch upgrade of Banco Popular's deposit rating to Ba1 and the one-notch upgrade of its senior unsecured debt ratings to Ba2 reflect (1) the affirmation of the bank's BCA and adjusted BCA at b1; (2) the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA of b1 for the deposit ratings and one notch of uplift for the senior unsecured debt ratings; and (3) the maintenance of one notch of government support uplift.

The affirmation of Banco Popular's standalone b1 BCA reflects the bank's (1) strong franchise value in the SME market; (2) adequate capital levels; and (3) improved liquidity profile. The bank's BCA is constrained by its very weak, albeit stabilising, asset-quality metrics and depressed recurring earnings and high credit costs that have weakened its bottom-line profitability.

Under Moody's Advanced LGF analysis, Banco Popular's long-term deposit and senior unsecured debt ratings take into account their very low and low loss-given-failure because of the bank's high volume of debt outstanding, leading to two notches and one notch of uplift, respectively, from the bank's b1 adjusted BCA.

Banco Popular's long-term deposit and senior unsecured debt ratings continue to benefit from one notch of government support uplift, despite Moody's revision of government support expectations to "moderate" from "high".

--Unicaja Banco S.A. (Unicaja)

The affirmation of Unicaja's long-term deposit ratings at Ba3 with a stable outlook and the downgrade of its senior unsecured debt ratings to (P)B1 incorporate (1) the affirmation of the bank's BCA and adjusted BCA at b1; (2) the Advanced LGF analysis that provides one notch of uplift from the bank's adjusted BCA of b1 for the deposit ratings and no uplift for the senior unsecured debt ratings; and (3) reduced government support assumptions, which lead to a removal of systemic support uplift.

The affirmation of Unicaja's standalone b1 BCA reflects the bank's (1) sound liquidity profile underpinned by sizeable liquid assets; (2) still-high level of problematic assets and modest profitability, which nevertheless should improve as the integration with Banco CEISS (unrated) gains momentum and starts benefiting from the more benign domestic economic environment; and (3) weak TCE-to-risk weighted assets (RWA) ratio, because of the heavy burden of DTAs.

Under Moody's Advanced LGF analysis, Unicaja's long-term deposit and senior unsecured debt ratings take into account their low and moderate loss-given-failure because of the group's relatively modest volume of subordinated and senior unsecured debt outstanding, leading to one and zero notches of uplift, respectively, from the bank's b1 adjusted BCA.

Moody's has lowered its government support assumptions for the bank to "low", resulting in no support uplift for the debt and deposit ratings, from "moderate" and one notch previously.

--- Ibercaja Banco S.A. (Ibercaja)

The one-notch downgrade of Ibercaja's long-term deposit rating to B1 from Ba3 reflects (1) the affirmation of the bank's BCA at b1 and the adjusted BCA at the same level; (2) the Advanced LGF analysis, which provides no uplift from the bank's adjusted BCA; and (3) the reduced government support assumption, which lead to a removal of systemic support uplift.

Ibercaja's affirmed standalone BCA of b1 reflects (1) the bank's good franchise value in its home region of Aragon, which has been reinforced after the integration of Banco Grupo Caja 3; and (2) its favourable liquidity position, with modest refinancing requirements and sizable liquid assets. However, the BCA is constrained by Ibercaja's weakened financial profile following its acquisition of Caja 3, which resulted in a lower risk-absorption capacity for the combined entity to absorb further asset-quality deterioration.

Under Moody's Advanced LGF analysis, Ibercaja's long-term deposit ratings take into account their moderate loss-given-failure because of the bank's relatively low volume of wholesale deposits and subordination to it, leading to no uplift from the bank's b1 adjusted BCA.

Moody's reduced the government support assumption for Ibercaja to "low" upon the expected implementation of resolution legislation, leading to no government uplift for the deposit ratings, from "moderate" and one notch previously.

The negative outlook on Ibercaja's deposit ratings indicates negative rating pressure if the bank does not meet the deleveraging expectations in terms of its substantial securities portfolio, resulting in a higher-than-anticipated expected loss severity in the event of a resolution.

-- Kutxabank S.A.

The one-notch downgrade of Kutxabank's deposit and senior unsecured debt ratings to Ba2 with a stable outlook incorporates the affirmation of the bank's BCA and adjusted BCA at ba2, the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA of ba2 and the reduced government support assumptions, leading to a removal of systemic support ratings uplift.

In affirming Kutxabank's standalone ba2 BCA, Moody's reflects the positive evolution of risk-absorption capacity that is underpinned by (1) the bank's improving asset-quality metrics; (2) its modest revenue generation capacity that should further improve as Spain's economy consolidates its sound recovery; and (3) the bank's sound liquidity profile. The affirmation also reflects Kutxabank's high level of DTAs on its capital, which results in a lower TCE-to-RWA compared with its strong regulatory capital levels.

Under Moody's Advanced LGF analysis, Kutxabank's long-term deposit and senior unsecured debt ratings take into account their moderate loss-given-failure because of the group's modest volume of subordinated and senior unsecured debt outstanding, leading to no uplift, respectively, from the bank's ba2 adjusted BCA.

Moody's has lowered its government support assumptions for the bank to "low", resulting in no support uplift for the debt and deposit ratings, from "moderate" and one notch previously.

--- Bankinter, S.A.

Bankinter's deposit ratings were upgraded by two notches to Baa1 while its senior unsecured debt ratings were upgraded by one notch to Baa2. These ratings carry a stable outlook. Concurrently, the bank's short-term ratings were upgraded to Prime-2. The rating actions incorporate (1) a one-notch upgrade of the BCA and adjusted BCA to baa3; and (2) the Advanced LGF analysis that provides two notches and one notch of uplift from the bank's adjusted BCA respectively; thereby more than offsetting (3) the reduced government support assumptions, leading to a removal of systemic support ratings uplift.

Moody's upgraded Bankinter's standalone BCA to baa3, recognising the material improvement of the bank's credit-risk profile, especially in terms of asset-risk metrics, which rank among the strongest in the Spanish banking sector, as well as in terms of capital adequacy. However, modest recurrent profitability and high reliance on market funding, albeit both improving, constrain the BCA.

Moody's Advanced LGF analysis provides two notches and one notch of uplift from the bank's baa3 adjusted BCA for the long-term deposit and senior unsecured debt ratings respectively, given the very low and low loss-given-failure which reflects the high volumes of respective liabilities and the amount of subordinated debt.

Moody's reduced the government support assumption for Bankinter to "low" upon the expected implementation of resolution legislation, leading to no government uplift for the deposit ratings, from "moderate" and one notch previously.

--- Abanca Corporacion Bancaria, S.A. (Abanca)

The confirmation of Abanca's long-term deposit ratings at Caa1 incorporates (1) a two-notch upgrade of the BCA and adjusted BCA to b3, which offsets the outcome of (2) the Advanced LGF analysis, resulting in a minus-one notch from the bank's adjusted BCA; as well as (3) reduced government support assumptions, leading to a removal of systemic support ratings uplift.

Moody's upgraded Abanca's standalone BCA to b3 from caa2 recognising a material improvement of the bank's credit-risk profile, especially in terms of asset-risk metrics and its funding profile, on the back of ongoing deleveraging and sizeable liquid assets. However, the bank's weak capital position according to Moody's capital assessment, owing to the large amount of DTAs, and its weak recurrent profitability continue to constrain the b3 BCA.

Under Moody's Advanced LGF analysis, Abanca's long-term deposit ratings take into account their high loss-given-failure because of the bank's low volume of wholesale deposits and subordination to it, leading to a minus-one notch from the bank's b3 adjusted BCA.

Moody's reduced the government support assumption for Abanca to "low" upon the expected implementation of resolution legislation, leading to no government uplift for the deposit ratings, from "moderate" and one notch previously.

The positive outlook of Abanca's deposit ratings reflects Moody's expectations that the shrinkage of the balance sheet, observed in recent periods, is likely to continue over the upcoming quarters, resulting in lower loss-given-failure for the bank's deposits.

--- Liberbank S.A.

The confirmation of Liberbank's long-term deposit ratings at B1 with a stable outlook and of its senior unsecured debt ratings at (P)B1, incorporates (1) the one-notch upgrade of the BCA to b1; (2) the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA of b1; which, together, offset (3) the reduced government support assumptions, leading to a removal of systemic support ratings uplift.

In upgrading Liberbank's standalone BCA to b1, Moody's reflects the bank's improving asset-quality metrics and sound liquidity profile. The BCA also incorporates Liberbank's modest recurring earnings power, which should begin to yield benefits from Spain's improving macroeconomic conditions. Liberbank's standalone BCA is constrained by the weak TCE ratio, given the very high amount of DTAs.

Under Moody's Advanced LGF analysis, Liberbank's long-term deposit and senior unsecured debt ratings take into account their moderate loss-given-failure because of the group's modest volume of subordinated and senior unsecured debt outstanding, leading to no uplift, respectively, from the bank's b1 adjusted BCA.

Moody's has lowered its government support assumptions for the bank to "low", resulting in no support uplift for the debt and deposit ratings, from "moderate" and one notch previously.

--- Caja Laboral Popular Cooperativa de Crédito (Caja Laboral)

The confirmation of Caja Laboral's long-term deposit rating at Ba1 incorporates (1) the affirmation of the bank's BCA and adjusted BCA at ba1; as well as (2) the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA. Government support assumptions for Caja Laboral remain low and are unaffected by Moody's revised systemic support assumptions. As a result, they continue to provide no ratings uplift.

The affirmation of Caja Laboral's standalone ba1 BCA reflects (1) the bank's adequate local brand franchise in the Basque Country and Navarre; (2) its adequate capitalisation levels; and (3) its sound retail deposit base and low reliance on wholesale funding. The bank's BCA also reflects its high level of non-earning assets -- albeit comparing favourably with the Spanish banking system average -- and its historically modest profitability levels.

Under Moody's Advanced LGF analysis, Caja Laboral's long-term deposit rating takes into account its moderate loss-given-failure because of the bank's low volume of wholesale deposits and subordination to it, leading to no uplift from the bank's ba1 adjusted BCA.

--- Banco Cooperativo Espanol S.A. (BCE)

The one-notch upgrade of BCE's long-term deposit rating to Ba1 incorporates: (1) the upgrade of the bank's BCA to ba2 from ba3 and of the adjusted BCA to ba1 from ba3; (2) the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA; which, together, more than offset (3) reduced government support assumptions, leading to a removal of systemic support ratings uplift.

The upgrade of BCE's standalone BCA to ba2 reflects (1) the bank's moderate risk profile and diminished asset exposure to the rural cooperatives sector - albeit its exposure to the Spanish sovereign debt remains high, encompassing concentration and some market risk; and (2) its adequate liquidity profile. The bank's BCA is constrained by BCE's very high leverage because of its role as service provider and its modest but stable profitability levels.

BCE is owned by the 38 rural co-operatives amalgamated under the Asociacion Espanola de Cajas Rurales (AECR; unrated) and by DZ Bank AG (deposits/senior unsecured A1 on review for upgrade, BCA baa2), based in Germany (Aaa stable). BCE's purpose is to provide these rural co-operatives with a cost-effective comprehensive range of financial services. Moody's believes there is a high probability of support from these rural co-operatives associated under the AECR, given BCE's role as central treasury provider for this group of entities. As a result of the affiliate support assessment, BCE's adjusted BCA is ba1, one notch above the bank's BCA.

Under Moody's Advanced LGF analysis, BCE's long-term deposit rating takes into account its moderate loss-given-failure because of the bank's relatively low volume of wholesale deposits and subordination to it, leading to no uplift from the bank's ba1 adjusted BCA.

Moody's has lowered its government support assumptions for the bank to "low", resulting in no support uplift for the debt and deposit ratings, from "moderate" and one notch previously.

---Banca March, S.A.

Banca March's long-term deposit ratings were upgraded by two notches to Baa1 with a stable outlook. Concurrently, the bank's short-term deposit ratings were upgraded to Prime-2. The rating actions incorporate (1) the affirmation of the bank's BCA and the adjusted BCA (both at baa3); and (2) the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA. Government support assumptions for Banca March remain low and are unaffected by Moody's revised systemic support assumptions. As a result, they continue to provide no ratings uplift.

Moody's affirmation of Banca March's standalone BCA of baa3 reflects (1) the bank's well-established franchise in its home region; (2) its strong liquidity profile and favourable asset-quality indicators; and (3) its sound risk-absorption capacity, supported by Moody's assessment of a strong capital base. The BCA also reflects exposure to equity risk through its investment vehicle, Corporacion Financiera Alba (Alba; unrated) and high single-name concentrations. Although Alba's activities represent a high exposure to equity risk, sizeable unrealised capital gains mitigate this risk.

The upgrade of Banca March's deposit ratings takes into account the very low loss-given-failure for the bank's wholesale deposits under Moody's Advanced LGF analysis, because of the bank's substantial volumes of deposits and subordination to it, leading to two notches of uplift from the bank's baa3 adjusted BCA.

--- Cecabank, S.A.

Cecabank's long-term deposit ratings were upgraded by four notches to Baa2 with a stable outlook. Concurrently, the short-term deposit ratings were upgraded to Prime-2 from Not-Prime. The rating actions incorporate (1) a three-notch upgrade of the BCA and adjusted BCA to ba1 reflecting a sustained recovery in the bank's performance following a successful strategic reorientation; (2) the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA; thereby more than offsetting (3) the reduced government support assumptions, leading to a removal of systemic support ratings uplift.

The upgrade of Cecabank's standalone BCA to ba1 from b1 reflects the bank's success in the strategic reorientation of its business model. Since 2011, the bank embarked on a business transformation, focusing on the provision of independent depositary and ancillary services to a widening group of clients. The bank has been able to sign long-term depositary services agreements with a large set of Spanish financial institutions, thereby establishing itself as the third-largest service provider in the country. The agreements provide Cecabank with a stable source of earnings, allowing the bank to offset the decline in other revenue lines. Other factors supporting the BCA upgrade are Cecabank's satisfactory capitalisation relative to its risk profile and its comfortable liquidity position.

Under Moody's Advanced LGF analysis, Cecabank's long-term deposit ratings take into account the very low loss-given-failure because of the bank's very high volume of wholesale deposits, leading to two notches of uplift from the bank's ba1 adjusted BCA.

Moody's reduced the government support assumption for Cecabank to "low" upon the expected implementation of resolution legislation, leading to no government uplift for the deposit ratings, from "moderate" and one notch previously.

--- Caja Rural de Navarra (CRN)

The confirmation of CRN's long-term deposit rating at Baa3 with a positive outlook incorporates (1) the affirmation of the bank's BCA and adjusted BCA both at baa3; and (2) the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA. Government support assumptions for CRN remain low and are unaffected by Moody's revised systemic support assumptions. As a result, they continue to provide no ratings uplift.

The affirmation of CRN's standalone baa3 BCA reflects the bank's sound financial fundamentals, namely (1) its stronger asset-quality performance compared with that of the banking system; (2) its sound capitalisation levels; (3) its stable retail deposit base and low reliance on wholesale funding; and (4) the fact that it mainly operates in Navarra, one of the wealthiest regions in Spain. The bank's BCA also reflects CRN's modest (albeit improving) profitability levels.

Under Moody's Advanced LGF analysis, CRN's long-term deposit rating takes into account its moderate loss-given-failure because of the bank's low volume of wholesale deposits and subordination to it, leading to no uplift from the bank's baa3 adjusted BCA.

The outlook on CRN's deposit rating is positive to reflect the upward pressure that could develop on the bank's ratings if the improving trend of its credit fundamentals consolidates over the next 12-18 months.

--- Bankoa, S.A.

The confirmation of Bankoa's deposit ratings at Baa3 with a stable outlook incorporates (1) the affirmation of the bank's ba2 BCA and baa3 adjusted BCA, which incorporate unchanged affiliate support assumptions from French Groupe Credit Agricole (GCA; unrated); and (2) the Advanced LGF analysis that provides no uplift from the bank's adjusted BCA. Government support assumptions for Bankoa remain low and are unaffected by Moody's revised systemic support assumptions. As a result, they continue to provide no ratings uplift.

The affirmation of the standalone ba2 BCA reflects the bank's (1) modest franchise; (2) parental funding reliance; and (3) low risk-adjusted profitability and efficiency indicators. However, the bank's predominantly retail operations, which ensure a high degree of earnings recurrence, partly offset the abovementioned negative features. Furthermore, the bank's asset-quality indicators are good compared with those of its domestic peers, and it derives benefits from its integration within the larger GCA. Moody's believes that Bankoa benefits from a very high probability of support from its ownership by GCA. As a result of Moody's affiliate support assessment, the rating agency affirmed Bankoa's adjusted BCA at baa3, two notches above its BCA.

Under Moody's Advanced LGF analysis, Bankoa's long-term deposit ratings take into account their moderate loss-given-failure because of the bank's relatively low volume of subordinated and senior unsecured debt outstanding, leading to no uplift from the bank's baa3 adjusted BCA.

--- ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS

Moody's has also assigned CR Assessments to 20 Spanish banks. 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 that authorities can take to preserve the key operations of a bank should it enter a resolution.

For the 20 affected Spanish banks, the CR Assessments are positioned, prior to government support, one to 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 focusing purely on subordination and taking no account of the volume of the instrument class.

For two of these banks (Bankia and Banco Popular), the CR Assessments also benefit from government support in line with Moody's support assumptions on deposits and senior unsecured debt. This reflects Moody's view that any support that governmental authorities provide to a bank and that benefits senior unsecured debt or deposits is very likely to benefit operating activities and obligations reflected by the CR Assessment as well, consistent with Moody's belief that governments are likely to maintain such operations as a going-concern in order to reduce contagion and preserve a bank's critical functions. The CR Assessments of 18 other banks do not benefit from government support.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward rating momentum on most Spanish banks' ratings could be driven by clear evidence that asset quality is improving, along with a sustainable recovery in banks' recurring earnings and/or improved quality of capital (with a lower weight of DTAs). Any significant macroeconomic growth beyond Moody's central scenario of 2.7% GDP growth in 2015 could further underpin signs of a turnaround in the banks' performance. For Santander, SCF and BBVA, any upward pressure on their ratings is unlikely as long as the Spanish government's bond rating remains at Baa2.

Downward rating pressure on the banks' ratings could emerge if (1) a broad deterioration of their financial fundamentals hinders their ability to preserve their solvency levels; (2) operating conditions worsen beyond Moody's current expectations; and/or (3) their liquidity profiles deteriorate significantly.

PRINCIPAL METHODOLOGY

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.

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.

The following information supplements Disclosure 10 ("Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7") in the regulatory disclosures made at the ratings tab on the issuer/entity page on www.moodys.com for each credit rating as indicated:

Moody's was not paid for services other than determining a credit rating in the most recently ended fiscal year by the person(s) that paid Moody's to determine this credit rating.

The ratings of rated entities ABANCA Corporacion Bancaria, S.A., Bancaja Emisiones, S.A. Unipersonal, Caymadrid International Ltd. and Bankia, S.A. were not initiated or not maintained at the request of these rated entities

These rated entities ABANCA Corporacion Bancaria, S.A. Bancaja Emisiones, S.A. Unipersonal, Caymadrid International Ltd. and Bankia, S.A or related third parties did not participate in the rating process. Moody's was not provided, for purposes of the rating, access to books, records and other relevant internal documents of the rated entity or related third party.

Please click on this link (http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_182392) for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

• Unsolicited ratings

• Non participating issuers

• [EU only] participation in unsolicited ratings

• Person approving the credit rating

• Releasing office

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

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.

Maria Cabanyes
Senior Vice President
Financial Institutions Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
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 Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's concludes reviews on 20 Spanish banks' ratings
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