Moodys.com
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 reviews on three Slovak banks' ratings

10 Jun 2015

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

London, 10 June 2015 -- Moody's Investors Service has today concluded its rating reviews on three banks in Slovakia (A2 stable), upgrading Vseobecna uverova banka, a.s. to A2/Prime-1 from A3/Prime-2 and Ceskoslovenska obchodna banka (Slovakia) to Baa1 from Baa2, whilst confirming Tatra banka, a.s. at Baa1/Prime-2. Furthermore, Moody's upgraded the Baseline Credit Assessment (BCA) of Ceskoslovenska obchodna banka (Slovakia) to ba1 from ba2, while the remaining two banks' BCAs are unaffected. Moody's has assigned stable outlooks to the long-term deposit ratings of all the three banks.

The review on Tatra banka was initiated on 29 December 2014, following the rating action on Tatra's parent Raiffeisen Bank International AG (Baa2 on review, direction uncertain/ Prime-2 on review for downgrade; BCA: ba3), and was extended on 26 of February 2015. The review on the other two banks was initiated on 17 March, and followed the introduction of the rating agency's revised bank rating methodology published on 16 March 2015. Please refer to this link for the revised methodology: http://www.moodys.com/viewresearchdoc.aspx?docid=PR_320662

In light of the revised banking methodology, Moody's rating actions generally reflect the following considerations (1) the "Strong -" macro profile of Slovakia; (2) the banks' strong core financial ratios; (3) the protection offered to senior creditors by substantial volumes of deposits, and in some cases also by the subordination of some bail-in-able securities, as captured by Moody's Advanced Loss Given Failure (LGF) liability analysis; and (4) Moody's view of a lower likelihood of government support for some institutions.

Moody's has also assigned Counterparty Risk Assessments (CR Assessments) to the three banks, in line with its revised bank rating methodology.

Please refer to the end of this press release for a list of affected ratings.

RATINGS RATIONALE

The revised 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 "STRONG -" MACRO PROFILE OF SLOVAKIA

Slovak banks' operations are concentrated domestically, so they benefit from Slovakia's supportive macroeconomic environment, characterised by very high economic and institutional strength, as well as low susceptibility to event risk. Slovakia's modestly sized economy has maintained good average growth with low volatility in recent years.

(2) THE BANKS' SOUD CORE FINANCIAL RATIOS

The Slovak banks' BCAs (average asset-weighted BCA is baa3) reflect their sound core financial ratios, including a moderate level of problem loans in aggregate, strong capital ratios, satisfactory profitability and good liquidity metrics. These strengths are moderated by Slovak banks' high credit-risk concentration to their own sovereign given the narrow lending opportunities domestically. Furthermore, banks' dividend payouts and capital structures depend largely on foreign parents, some of which are facing headwinds.

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

Slovak banks are subject to the EU 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 these banks' liability structures. This analysis results in a very low loss given failure for long-term deposits (reflected in an average two-notch uplift from the Adjusted BCA) taking into account the protection offered primarily by the banks' sizeable volumes of deposits and limited senior debt, and the amount of debt subordinated to both senior debt and deposits.

(4) DECLINE IN THE LIKELIHOOD OF GOVERNMENT SUPPORT

Moody's has also lowered its expectations about the degree of support that a government might provide to a bank in Europe. The main trigger for this reassessment is the introduction of the BRRD in the EU, which came into effect in January 2015 and is currently being transposed into local law in each European jurisdiction. This has resulted in a reduction in government support uplift included in Moody's senior debt and deposit ratings, to one notch for those Slovak banks considered systemically important. The impact of this is wholly or in some cases more than offset by the recognition of low loss given failure described above.

--- ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS

Moody's has also assigned CR Assessments to three Slovak 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 the likelihood of default and the expected financial loss suffered in the event of default; 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.

Moody's CR Assessments for banks subject to a going-concern operational resolution regime, which includes all Slovak banks, start with the banks' adjusted BCA and use an advanced LGF approach that takes into account the volume of liabilities subordinated to counterparty obligations in the bank's liability structure as well as any assumption of government support.

The CR Assessments for the Ceskoslovenska obchodna banka (Slovakia) and Vseobecna uverova banka, a.s. are three notches above their adjusted BCAs and for Tatra banka, a.s. CR Assessment is four notches above the adjusted BCA, reflecting the seniority of the counterparty obligations and the volume of liabilities subordinated to them under Moody's Advanced LGF framework.

--- BANK SPECIFIC ANALYTIC FACTORS

-- Ceskoslovenska obchodna banka (Slovakia). "CSOB-SK"

The upgrade of the bank's long-term deposit ratings to Baa1 from Baa2 is due to the Advanced LGF analysis that provides two notches of uplift from the bank's adjusted BCA of baa3, which fully offsets reduced government support assumptions. CSOB benefits from a large volume of deposits, and limited senior obligations, resulting in very low loss given failure. However, because of the bank is subject to the resolution legislation, Moody's has lowered its government support assumptions for the bank to "moderate", leading to no additional notch of uplift from government support, from "very high" and one notch previously.

The upgrade of the bank's BCA to ba1 from ba2 reflects the bank's satisfactory capital ratios, good profitability, good funding profile and liquidity base. However, these strengths are moderated by (1) the bank's moderate asset quality, with relatively weak coverage; and (2) the bank's relatively high balance-sheet concentration to the domestic sovereign in the form of securities holdings and corporate business.

The upgrade of CSOB-SK's BCA resulted in a narrowing of the gap between the adjusted BCA of baa3 -- which remains unchanged -- and BCA, to one notch from two notches. Therefore, CSOB-SK's ratings continue to benefit from a high likelihood of extraordinary affiliate support from KBC Bank NV (KBC; deposits A2 Positive; BCA baa2), in case of need, providing one notch of uplift. Moody's bases its view on KBC's majority stake in the bank, and because there is a high level of operational integration between the two. Moody's views both CSOB-SK and the Slovak market as important to KBC's operations.

-- Tatra banka, a.s. "Tatra"

The confirmation of the bank's deposit ratings at Baa1/Prime-2, with a stable outlook, reflects the Advanced LGF analysis that provides two notches of uplift from the bank's ba1 BCA which offsets reduced government support assumptions. Tatra benefits from a large volume of deposits, and limited senior and subordinated debt, resulting in very low loss given failure. However, because the bank is subject to the resolution legislation, Moody's has lowered its government support assumptions for the bank to "moderate", leading to one notch of uplift from support, from "very high" and three notches previously.

-- Vseobecna uverova banka, a.s. "VUB".

The upgrade of the bank's long-term deposit rating to A2 from A3 is due to the Advanced LGF analysis that provides two notches of uplift from the bank's BCA of baa2 and offsets reduced government support assumptions. VUB benefits from a large volume of deposits, resulting in very low loss given failure. However, because the bank is subject to the resolution legislation, Moody's has lowered its government support assumptions for the bank to "moderate", leading to one notch of uplift from support, from "very high" and two notches previously.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The banks' ratings could be upgraded in case of (1) a sustained improvement in profitability; (2) materially stronger capital positions; and/or (3) a significant reduction in problem loans.

Downward rating pressure could emerge in case of (1) deterioration in the bank's asset risk and capital or erosion in its funding structure or depletion of liquid resources. and/or (2) reduction in our external support assumptions and/ or material deterioration in the banks' shareholder's credit profiles to the level that it will constrain the BCA of the banks.

LIST OF AFFECTED BANKS

++++++++++++++++++++++++++

-- Ceskoslovenska obchodna banka (Slovakia)

Long-term local and foreign-currency deposit ratings upgraded to Baa1 from Baa2.

Stable outlook assigned to long-term ratings.

Affirmed the Prime-2 short-term local and foreign currency deposit ratings.

Baseline Credit Assessment upgraded to ba1 from ba2.

Assigned CR assessment of A3(cr)/Prime-2(cr).

-- Tatra banka, a.s.

Baa1/Prime-2 local and foreign-currency deposit ratings confirmed, long-term deposits have a stable outlook.

Assigned CR assessment of A3(cr)/Prime-2(cr).

-- Vseobecna uverova banka, a.s.

Local and foreign-currency deposit ratings upgraded to A2/Prime-1 from A3/Prime-2.

Stable outlook assigned to long-term ratings.

Assigned CR assessment of A2(cr)/Prime-1(cr).

++++++++++++++++++++++++++

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:

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

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.

Arif Bekiroglu
Asst Vice President - 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

Yves Lemay
MD-Banking & Sovereign
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 reviews on three Slovak banks' ratings
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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

​​​​​​​​
Moodys.com