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 downgrades Goldman Sachs to A1, negative outlook

16 Dec 2008
Moody's downgrades Goldman Sachs to A1, negative outlook

Approximately $175 Billion in Debt Affected

New York, December 16, 2008 -- Moody's Investors Service downgraded the long-term senior debt ratings of Goldman Sachs Group Inc. ("Goldman Sachs") to A1 from Aa3, excluding FDIC-guaranteed debt. The Aa3 deposit ratings of Goldman Sachs' banking subsidiaries and all of its Prime-1 short-term ratings were affirmed. The outlook remains negative.

The downgrade of Goldman Sachs' senior debt to A1 reflects (1) the increased vulnerabilities that the ongoing credit market crisis has exposed in the model of Goldman Sachs and other wholesale-funded investment, commercial, and universal banks (see "Impact of the Credit Crisis on Moody's Rating Methodology and the Credit Profiles of Investment Banks" dated October 2008); (2) the likelihood of increased structural subordination for Goldman Sachs creditors relative to its bank-level creditors; and (3) a persistent difficult operating environment that will continue to challenge the firm. Tempering these issues, Moody's is now incorporating one notch of benefit to the firm's ratings for potential systemic support. Finally, though Goldman Sachs' 4Q2008 results announced today were consistent with Moody's expectations, they were a factor in this rating action in that they reflect the business model issues the firm faces.

The risks in Goldman Sachs' and other wholesale-funded banks' business model has been highlighted by the market stresses of the past 18 months. These risks include opaque exposures, risk control failures, high leverage, and confidence-sensitivity. "This crisis has demonstrated that the business model of wholesale investment banks is not as resilient as it appeared," said Peter Nerby, a Senior Vice-President at Moody's.

Goldman Sach's fourth quarter loss was within Moody's expectations and is not indicative of a risk control failure at the firm. However, these results do highlight risks faced by the firm. Moody's said that Goldman Sachs remains profitable for 2008 and the firm has outperformed many of its peers during the ongoing credit crisis. Additionally, the firm has reduced leverage and raised substantial capital. This supports its current rating level, though the negative outlook considers the likelihood of an extended downturn in capital market activity, which will reduce Goldman Sachs' revenue and profit potential in 2009 and beyond.

The decision by Goldman Sachs to register as a bank holding company and submit to regulation and oversight by the Federal Reserve could benefit creditors by placing some additional limits on the firm's ability to aggressively increase its risk profile in the future. However, Moody's also believes that as Goldman's organizational and funding structure evolves under its new regulatory regime it will likely lead over time to increased structural subordination for holding company creditors relative to bank-level depositors and counterparties. Therefore, Moody's introduced a one notch differential between the Aa3 bank deposit rating and the A1 senior debt rating of the holding company.

Positively, Moody's views Goldman Sachs as a systemically important institution and its ratings benefit from Moody's assumption of a high likelihood of external support. The incorporation of this level of support has resulted in a one-notch lift for both Goldman Sachs and its banking subsidiaries relative to the ratings level that would exist in the absence of support.

In affirming all Prime-1 ratings, Moody's noted that Goldman Sachs has a solid liquidity profile. "Goldman Sachs is conservative and comprehensive in its approach to managing liquidity risk," said Mr. Nerby. Goldman Sachs and other systemically important financial institutions also benefit from comprehensive liquidity support. As a result, Moody's thinks that Goldman Sachs liquidity profile remains strong. In addition to other support programs, Goldman Sachs has access to the Temporary Liquidity Guarantee Program and Moody's rates qualifying issuance Aaa, based on the FDIC guarantee, (see Moody's November 23, 2008 press release).

Moody's last rating action on Goldman Sachs was on October 9, 2008 when the rating outlook lowered to negative from stable. The principal methodology used in rating Goldman Sachs is the Global Securities Industry Methodology, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory. Goldman Sachs is a global investment banking firm that reported $2.3 billion in earnings in 2008. The following ratings were downgraded:

Issuer: Asset Funding Company IV Limited

..Downgrades:

....Senior Secured Medium-Term Note Program, Downgraded to A1 from Aa3

....Senior Secured Regular Bond/Debenture, Downgraded to A1 from Aa3

Issuer: GS Finance Corp.

..Downgrades:

....Senior Unsecured Regular Bond/Debenture, Downgraded to A1 from Aa3

Issuer: GS Financial Investments, Inc

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to A2 from A1

Issuer: Goldman Sachs Bank (Europe) plc

..Downgrades:

.... Bank Financial Strength Rating, Downgraded to B- from B

Issuer: Goldman Sachs Bank USA

..Downgrades:

.... Bank Financial Strength Rating, Downgraded to B- from B

Issuer: Goldman Sachs Capital I

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to A2 from A1

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Capital II

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to A3 from A2

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Capital III

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to A3 from A2

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Capital IV

..Downgrades:

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Capital V

..Downgrades:

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Capital VI

..Downgrades:

....Preferred Stock Shelf, Downgraded to (P)A2 from (P)A1

Issuer: Goldman Sachs Financial Products I Limited

..Downgrades:

....Senior Unsecured Medium-Term Note Program, Downgraded to A1 from Aa3

....Senior Unsecured Regular Bond/Debenture, Downgraded to A1 from Aa3

Issuer: Goldman Sachs Group, Inc. (The)

..Downgrades:

.... Issuer Rating, Downgraded to A1 from Aa3

....Multiple Seniority Medium-Term Note Program, Downgraded to a range of A2 to A1 from a range of A1 to Aa3

....Multiple Seniority Shelf, Downgraded to a range of (P)A3 to (P)A1 from a range of (P)A2 to (P)Aa3

....Preferred Stock Preferred Stock, Downgraded to A3 from A2

....Subordinate Regular Bond/Debenture, Downgraded to A2 from A1

....Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to A1 from Aa3

....Senior Unsecured Medium-Term Note Program, Downgraded to A1 from Aa3

....Senior Unsecured Regular Bond/Debenture, Downgraded to A1 from Aa3

Issuer: Goldman Sachs Overseas Finance, L.P.

..Downgrades:

....Senior Unsecured Regular Bond/Debenture, Downgraded to A1 from Aa3

Issuer: Goldman Sachs Paris Inc., et Cie

..Downgrades:

.... Issuer Rating, Downgraded to A1 from Aa3

New York
Peter E. Nerby
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Robert Young
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

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