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

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

PLEASE READ AND SCROLL DOWN!

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

Terms of One-Time Website Use

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

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

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

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

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

I AGREE
Rating Action:

Moody's confirms Heta, upgrades Hypo Tirol and Pfandbriefbank (Oesterreich)

12 Oct 2016

Frankfurt am Main, October 12, 2016 -- Moody's Investors Service has today taken rating actions on three Austrian financial institutions following the announcement by Kaerntner Ausgleichszahlungs-Fonds (KAF, backed senior secured rating Aa1 stable) on 10 October 2016 that the required two-third acceptance rate was comfortably met for its renewed tender offer for Heta Asset Resolution AG's (Heta) senior unsecured and subordinate debt obligations, which benefit from a grandfathered statutory guarantee of the regional State of Carinthia (B1 with developing outlook).

Consequently, Moody's has taken the following rating actions:

--- Confirmation of Heta's Ca senior unsecured debt rating and of its C subordinate debt rating, all guaranteed by the State of Carinthia.

--- Upgrade of Hypo Tirol Bank AG's (Hypo Tirol) deposit ratings to Baa3/Prime-3 from Ba1/Not-Prime and of its long-term debt ratings to Baa3 from Ba1. Moody's further upgraded Hypo Tirol's standalone baseline credit assessment (BCA) and adjusted BCA to ba2 from ba3, and its Counterparty Risk Assessment (CR Assessment) to Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr). Hypo Tirol's backed long-term senior unsecured debt and deposit ratings were upgraded to Baa1 from Baa2 while its backed short-term deposit ratings of Prime-2 were affirmed.

--- Upgrade of Pfandbriefbank's (Oesterreich) AG's (Pfandbriefbank) backed senior unsecured debt ratings to Baa3 from Ba1.

The long-term senior unsecured and deposit ratings of the entities affected by today's rating action carry a stable outlook.

Today's rating action concludes the rating review initiated on 23 May 2016 on all three entities' ratings.

Further, Heta's Austrian government-guaranteed subordinated debt rating of Aa1 is unaffected by today's rating action.

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

RATINGS RATIONALE

-- CONFIRMATION OF HETA'S DEFICIENCY-GUARANTEED RATINGS

The confirmation of Heta's deficiency-guaranteed Ca-rated senior unsecured debt rating and C-rated subordinate debt rating reflects Moody's unchanged assessment that the expected losses for each liability class remain in the 35%-65% and the greater-than-65% range, respectively. This assessment takes into account a compensatory payment for Carinthia's deficiency guarantee undertaken by KAF, which is 10.97 percentage points for both debt classes. These ratings relate to creditors who have not accepted the KAF's renewed tender offer (so-called "hold-outs") and thus will only benefit from an orderly wind-down of Heta's assets, which is not expected before end-2023. KAF, a public-sector special purpose entity established under the regional law of the State of Carinthia, is offering Heta creditors to swap their Heta debt into a zero-coupon debt issuance which is backed by a full, direct, unconditional and irrevocable guarantee provided by the Government of Austria (Aa1, stable).

On 10 April 2016, the Austrian Financial Market Authority (FMA) imposed several resolution measures on Heta, including a bail-in of liabilities. The FMA's emergency administrative decision ("Mandatsbescheid") reduced the face value of Heta's senior unsecured liabilities to 46.02%, while the entity's subordinated liabilities had been written down to zero. In addition, the regulator canceled interest payments and extended the maturity of all affected liabilities until 31 December 2023, effectively rolling over the payment moratorium that the regulatory body ordered in March 2015.

The stable outlook on Heta's deficiency-guaranteed senior unsecured debt rating reflects Moody's views that any cash payback for hold-out creditors will not be known before Heta's orderly wind-down is concluded until end-2023, which goes beyond the outlook horizon.

-- UPGRADE OF HYPO TIROL'S BCA AND RATINGS

The upgrade of Hypo Tirol's BCA to ba2 from ba3 reflects the significant reduction of downside risks related to Hypo Tirol's contingent liabilities resulting from its joint and several liability shared with fellow members of Pfandbriefbank.

In addition, owing to a reversal of impairments and reserves held against its exposure to Heta, Moody's expects Hypo Tirol to benefit from a sizable one-off profit, which will support Hypo Tirol's efforts to further strengthen its capitalisation. At the same time, the exchange of Hypo Tirol's illiquid Heta claims into a liquid zero bond issued by KAF helps the bank further improve its overall liquidity profile ahead of the bank's concentrated debt maturities in 2017.

Hypo Tirol's stable rating outlook reflects the rating agency's expectation that a significant change in the bank's liability structure as a result of the upcoming maturity of large portions of its backed senior unsecured debt in 2017 will have a net neutral effect on the bank's ratings. Moody's expects a successful completion of the refinancing operations predominantly through covered bond issuance and the use of excess liquidity to put upward pressure on the bank's BCA, mostly because of a reduced market funding dependence and a smoothened debt maturity profile. At the same time, the rating agency expects the bank to make additional progress in the work-out of its Italian legacy non-performing loan (NPL) portfolio.

The reduction of senior unsecured funding components will, however, compress significantly the currently still comfortable buffer of senior unsecured instruments, which will put pressure on the bank's Advanced LGF notching results that could partly offset upward pressure on the bank's standalone credit profile.

-- UPGRADE OF PFANDBRIEFBANK'S RATINGS

The upgrade reflects Moody's assessment that the debt exchange exerts upward pressure on Pfandbriefbank's supporting member banks' creditworthiness from which Pfandbriefbank's ratings are derived. The upward pressure results from lower-than-previously expected losses imposed on their direct and indirect Heta debt exposure based on the debt exchange which reduces tail risk related to Pfandbriefbank support.

Pfandbriefbank's rating continues to be purely based on the member banks' creditworthiness and does not include uplift from public-sector entities, reflecting the track record of lack of commitment by several federal states to honour their obligations under the existing joint and several liability framework.

Given its business profile as a poorly capitalised issuing vehicle for its member banks, i.e., the Austrian Landeshypothekenbanken or their legal successors, Pfandbriefbank relies fully on the performance of its concentrated assets to service its liabilities. The Heta moratorium in March 2015 therefore impaired its liquidity and solvency. Pfandbriefbank came under stress after the regulator in Austria imposed a payment moratorium on the liabilities of Heta to which Pfandbriefbank had a EUR1.2 billion exposure as of March 2015. Pfandbriefbank's liabilities are grandfathered under a statutory joint and several guarantee from member banks and their former guarantors, i.e. the relevant Austrian federal states, according to Austrian federal law.

The stable outlook on Pfandbriefbank's senior backed debt ratings reflects Moody's assessment on the supporting Austrian Landeshypothekenbanken credit quality.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Heta Asset Resolution AG

Upward ratings pressure on Heta's Carinthian-state-guaranteed senior unsecured and subordinated debt ratings could result from Moody's assessment of a higher-than-currently anticipated recovery rate for each debt class during the orderly wind-down of Heta.

Moody's would consider downgrading Carinthian-state-guaranteed senior unsecured debt ratings if the expected loss assumption on these instruments were higher than currently expected.

Hypo Tirol Bank AG

An upgrade of Hypo Tirol's long-term debt and deposit ratings could result from an upgrade of its standalone BCA, whereas a downgrade could be driven by the anticipated change in the bank's funding profile which may put downward pressure on the results of Moody's Advanced LGF analysis.

Hypo Tirol's BCA may be upgraded if: (1) following the bank's refinancing of its concentrated 2017 debt maturities, its funding profile is more evenly spread out than presently and less dependent on confidence-sensitive market funding sources; and/or (2) the bank continues to make solid progress in the reduction of its Italian NPL exposures.

Hypo Tirol's Advanced LGF analysis may result in reduced uplift if following the refinancing of backed senior unsecured maturities, the amount of equal-ranking debt for remaining senior unsecured creditors and wholesale depositors declined beyond the rating agency's current expectations.

Pfandbriefbank (Oesterreich) AG

An upgrade could result from: (1) a strengthening of the member banks' credit profiles; or (2) a clarification of the legal obligations of the Austrian federal member-states under the guarantee framework, to the extent that this removes any doubts over the full, unconditional liability of all parties to support Pfandbriefbank in a timely fashion. A downgrade could result from a deterioration of the member banks' credit profiles.

LIST OF AFFECTED RATINGS

The following ratings were upgraded:

..Issuer: Pfandbriefbank (Oesterreich) AG

....Backed Senior Unsecured Ratings, to Baa3 from Ba1, outlook changed to Stable from Rating Under Review

..Issuer: Hypo Tirol Bank AG

....Adjusted Baseline Credit Assessment, to ba2 from ba3

....Baseline Credit Assessment, to ba2 from ba3

....Long Term Counterparty Risk Assessment, to Baa2(cr) from Baa3(cr)

....Short Term Counterparty Risk Assessment, to P-2(cr) from P-3(cr)

....Long Term Bank Deposit Ratings, to Baa3 from Ba1, outlook changed to Stable from Rating Under Review

....Short Term Bank Deposit Ratings, to P-3 from NP

....Senior Unsecured Rating, to Baa3 from Ba1, outlook changed to Stable from Rating Under Review

....Senior Unsecured MTN Rating, to (P)Baa3 from (P)Ba1

....Subordinate MTN Rating, to (P)Ba3 from (P)B1

....Backed Long Term Bank Deposit Ratings, to Baa1 from Baa2, outlook changed to Stable from Rating Under Review

....Backed Senior Unsecured Ratings, to Baa1 from Baa2, outlook changed to Stable from Rating Under Review

....Backed Senior Unsecured MTN Rating, to (P)Baa1 from (P)Baa2

....Backed Subordinate Rating, to Ba1 from Ba2

....Backed Senior Subordinate Rating, to Ba1 from Ba2

....Backed Subordinate MTN Rating, to (P)Ba1 from (P)Ba2

The following rating was affirmed:

..Issuer: Hypo Tirol Bank AG

....Backed Short-Term Bank Deposit Ratings, at P-2

The following ratings were confirmed:

..Issuer: Heta Asset Resolution AG

.... Carinthian-state-guaranteed Senior Unsecured Debt Ratings at Ca, outlook changed to Stable from Rating Under Review

.... Carinthian-state-guaranteed Subordinate Debt Ratings, at C

Not Affected:

..Issuer: Heta Asset Resolution AG

.... Austrian government-guaranteed Subordinate Debt Rating at Aa1

Outlook Actions:

..Issuer: Heta Asset Resolution AG

....Outlook, changed to Stable from Rating Under Review

..Issuer: Hypo Tirol Bank AG

....Outlook, changed to Stable from Rating Under Review

..Issuer: Pfandbriefbank (Oesterreich) AG

....Outlook, changed to Stable from Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Bank published in January 2016. Please see the Rating Methodologies 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 credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

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

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 Hypo Tirol Bank AG, Pfandbriefbank (Oesterreich) AG or their agents are considered to be participating entities. These rated entities or their agents generally provide Moody's with information for their ratings process.

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.

Swen Metzler
Vice President - Senior Analyst
Financial Institutions Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
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 Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

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.

​​​​
Moodys.com