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

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

PLEASE READ AND SCROLL DOWN!

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

Terms of One-Time Website Use

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

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

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

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

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

I AGREE
Rating Action:

Moody's downgrades the ratings of the senior secured notes of rated vessels; ratings remain under review for downgrade

27 Feb 2015

New York, February 27, 2015 -- Moody's Investors Service (Moody's) downgraded the ratings of the senior secured notes of the following issuers:

SBM Baleia Azul, SII/ S.a.r.l.

Senior secured global notes due September 2027 downgraded to Ba3 from Ba1

Approximately US$ 400 million of debt affected

Lancer Finance Company (SPV) Limited

Senior secured global notes due July 2016 downgraded to B1 from Ba1

Approximately US$ 80 million of debt affected

Schahin II Finance Company (SPV) Limited

Senior secured global notes due September 2022 downgraded to B1 from Ba1

Approximately US$ 675 million of debt affected

QGOG Atlantic / Alaskan Rigs Limited

Senior secured global notes due July 2018 downgraded to B1 from Ba1

Approximately US$ 372 million of debt affected

Odebrecht Drilling Norbe VIII/IX Ltd.

Senior secured global notes due June 2021 downgraded to B2 from Ba1

Approximately US$ 1.275 billion of debt affected

Odebrecht Offshore Drilling Finance Limited

6.75% and 6.625% senior secured global notes due in October 2022 downgraded to B2 from Ba1

Approximately US$ 2.151 billion of debt affected (US$ 2.122 billion after March 2nd)

All ratings remain on watchlist under review for possible downgrade.

RATINGS RATIONALE

Our actions reflect the increased liquidity risk associated with the deteriorating credit profile of Petroleo Brasileiro S.A. ('Petrobras') (Ba2/On Review), the sole contractual off-taker and revenue source to service the outstanding debt issued by the above referenced entities. On February 24, 2015 Moody's downgraded all ratings for Petrobras (including debts rated based on Petrobras' guarantee), including a downgrade of the company's senior unsecured debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating (CFR) to the company. Moody's also lowered the company's Baseline Credit Assessment (BCA) to b2 from ba2. All Petrobras' ratings remain on review for downgrade.

Petrobras' rating downgrade reflects continued concerns about the potential impacts of the on-going corruption investigations as well as significant liquidity pressures that could arise as a consequence of Petrobras' failure to provide timely financial statements. Petrobras' debt agreements include covenants for the provision of financial statements. Extended delays in providing financial statements pose the risk that creditors may take actions that could eventually lead to payment acceleration. For a more detailed discussion of the recent Petrobras rating action, please refer to Moody's press release 'Moody's downgrades Petrobras' ratings to Ba2; maintains review for downgrade', dated February 24, 2015.

Our rating actions on the issuers also take into account, on a relative basis, the vessels' recent operating performance in 2013 and 2014 as measured by average uptime, the age and value of the vessels, chartered daily rates as compared to current market daily rates, maturity of the outstanding debt, re-contracting risk, liquidity arrangements as measured by level of reserve accounts, and the potential impact on the issuers as a result of the corruption investigations at the off taker's and sponsors' level, where applicable.

WHAT COULD CHANGE THE RATING UP/DOWN

We do not anticipate upward pressure in the near to medium term. The review of the issuers' ratings will continue to focus on a number of credit factors including: (i) any further deterioration of Petrobras' ratings, (ii) Petrobras' production and exploration strategy amid weakening sector fundamentals due to falling oil prices and other developments, and how the vessels fit into Petrobras' strategy, (iii) uncertainties due to the on-going corruption investigations, (iv) financial and operating performance, (v) legal constructs, and (vi) the risk that bondholders may accelerate a material amount of debt if Petrobras does not produce audited financial statements in a timely basis.

In case of negative outcomes related to the ongoing corruption investigations at Petrobras and/or certain issuers' sponsors, the review will assess the ability of the issuers' sponsors to renew its contracts or continue to provide services to Petrobras pursuant to their respective executed charter and services agreements. We also expect that re-chartering risk will be exacerbated by lower market-based daily rates caused by falling oil prices worldwide. The review will also assess whether further differentiation among the issuers ratings is deemed necessary based on the specifics of each transaction on an individual as well as on a relative basis.

SBM Baleia Azul, SII/ S.a.r.l.

The downgrade reflects primarily the further deterioration of the credit risk profile of Petrobras, the sole contractual off-taker and revenue source to service the outstanding Notes.

In addition, falling oil prices on a worldwide basis impact the value of the Project asset, FPSO Cidade de Anchieta (the "vessel"), a key piece of the security package. The change in economic fundamentals could dampen demand for FPSOs on a worldwide basis, thereby impacting the ability to re-contract the vessel in the extreme case that the charter and services agreements are terminated prior to debt maturity. Notwithstanding, it is our view that FPSOs present lower operating and technology risk than drilling rigs.

The Notes are secured on a senior basis by the revenues received from the Charter Agreement with Petrobras for the use of the FPSO Cidade de Anchieta. The rating incorporates the debt structure which fully amortizes three years prior to the end of the Petrobras Charter Agreement, the stable and strong cash flow generation capability of the asset evidenced by historically high average uptimes absent negative potential developments related to Petrobras. Revenues stemming from the associated Services Agreement between Petrobras and SBM do Brasil are not pledged to the Notes' investors. The Notes are also secured by a first priority mortgage on the vessel as well as the pledge of shares of the Issuer and by all transaction accounts, as is customary in this type of transaction.

Lancer Finance Company (SPV) Limited

The transaction is based on the charter agreement for the use of the S.C. Lancer drilling vessel between Petrobras and Turasoria S.A., L.L.C.. Under the agreement, Petrobras pays the lessor a daily rate irrespective of whether the vessel is actively drilling, is engaged in another activity such as moving to another job site, waiting to get a drilling assignment, or is unable to operate due to bad weather. The issuer will service the debt on the notes according to a schedule that comprises pre-defined interest payments and target principal amortization until the expected repayment of the Notes in June 2016.

The ratings also take into account the relatively short time until the final maturity of the Notes (July 2016), with no re-contracting risk at maturity. Notwithstanding, the ratings are somewhat constrained by the relatively limited transparency practices at the holding and operator levels when compared to its rated peers.

Schahin II Finance Company (SPV) Limited

Schahin II Finance Company (SPV) Limited ("the Issuer"), is a special purpose company established in the Cayman Islands, the activities of which are limited to the issuance and the repayment of the Notes. Dleif Drilling LLC., the owner of the vessel ("the Owner"), is a Delaware limited liability company, the activities of which are limited solely to owning and chartering the vessel. Schahin P&G is the operator of Sertão, as well as of a sister drilling vessel called the Cerrado, for which net revenues at the bottom of its waterfall are pledged to this transaction to help support the payments of the outstanding debt of the Issuer. Schahin P&G is wholly owned by Schahin through Schahin Holding S.A. The Notes were issued in 2012, and are due in September 2022.

The vessel chartered to Petrobras has presented operational performance that exceeds our original base case projections. Notwithstanding, the transaction has been structured to include a gross balloon payment of approximately US$219 million at maturity (September 2022), which is reduced to a net balloon of US$109.5 million when considering the cash trapping mechanism in the three years prior to debt maturity. Despite the option to extend the charter agreement for additional 10 years, the ratings are further constrained by the transaction's inherent re-contracting risk which is further potentially impacted by developments at Petrobras, in addition to the relatively limited transparency practices at the holding and operator levels when compared to its rated peers.

QGOG Atlantic / Alaskan Rigs Limited

QGOG Atlantic / Alaskan Rigs Limited, ("QGOG A/A" or the "Issuer") is a special purpose vehicle organized under the laws of the British Virgin Islands. The Issuer is jointly owned in equal parts by Alaskan Star Ltd (BVI) and Star International Drilling Ltd (Cayman Islands), both of which are wholly owned by Hopelake Services Limited (BVI).

The Alaskan Star and the Atlantic Star are mid-water drilling moored rigs. Both rigs are currently operating in Brazil under charter with Petrobras, with the charter agreement for the Alaskan Star ending November 2016, while the charter agreement for the Atlantic Star will end in July 2018. The US$700 million senior secured notes were issued by QGOG A/A in July 2011, and are due in July 2018, with a relatively small gross balloon payment of US$49.3 million, which we expect that at maturity will be fully covered with funds captured through the retention mechanisms and letters of credit.

Both Alaskan Star and Atlantic Star have demonstrated strong operating performance above our original base case projections for these type of vessels (drilling rigs). Notwithstanding, despite the relatively small gross balloon payment at maturity, re-contracting risk is exacerbated by charter daily rates that are only marginally below current market daily rates.

Odebrecht Drilling Norbe VIII/IX Ltd.

Odebrecht Drilling Norbe VIII/IX Limited is a wholly-owned subsidiary of Odebrecht Oil and Gas S.A. ("OOG" or the "Company", not rated), organized as a limited liability company under the laws of the Cayman Islands. The activities of Odebrecht Drilling Norbe VIII/IX Limited are limited to the issuance of the Notes and making the corresponding loan to each of the Project Companies, Odebrecht Drilling Norbe Eight Gmbh and Odebrecht Drilling Norbe Nine Gmbh, domiciled in Austria which own, respectively, the vessels Norbe VIII and Norbe IX. Each of the Project companies has a 10-year Charter Agreement with Petrobras, which began at the start of operation of each drilling vessel (2011) under which Petrobras pays a contracted daily rate for the use of each vessel. Both the Charter and the Services Agreements signed with Petrobras are extendable, upon mutual agreement between OOG and Petrobras, for additional 10 years at the end of the original expiration.

During the assessed period (2013/2014), Norbe VIII presented average uptime performance significantly below our original base case projections. This contrasts with the very strong operating performance of Norbe IX. The transaction has been structured to include a gross balloon payment of approximately US$450 million at maturity (June 2021), which is reduced to a still relatively large net balloon of US$225 million when considering the cash trapping mechanism in the three years prior to debt maturity embedded in the transaction structure.

Odebrecht Offshore Drilling Finance Limited

Odebrecht Offshore Drilling Finance Limited ("OODFL" or "Issuer") is an exempted company organized under the laws of the Cayman Islands, indirectly owned by Odebrecht Oil and Gas (not rated).

The transaction consists of the securitization of future flows of the Charter and Services Agreements between Petrobras and ODN I GmbH and ODN Six GmbH, which solely own OODFL, associated with a state-of--the-art, brand new 3-asset portfolio: two drillships ODN I and ODN II, and one semisubmersible rig, Norbe VI.

On February 14, 2014 OODFL completed a $580 million note offering, which added ODN Tay IV, a semisubmersible rig to the collateral package. ODN Tay IV is a fifth generation ultra-deepwater, purchased by OOG in 2011, at which time it was operating in Nigeria for Total SA by Stena Drilling.

The ratings of OODFL are constrained by the differing uptime performance among its 4-asset portfolio with ODN1 and Tay IV lagging behind, posing pressure on the issuer's ability to service debt. The ratings are further constrained by a relatively large net balloon payment at debt maturity, which is somewhat offset by a relatively low re-contracting risk given average chartered daily rates significantly below market daily rates.

The principal methodology used in these ratings was Generic Project Finance Methodology published in December 2010. 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.

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.

Alexandre G De Almeida Leite
VP - Senior Credit Officer
Project Finance Group
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800-891-2518
SUBSCRIBERS: 55-11-3043-7300

Chee Mee Hu
MD - Project Finance
Project Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's downgrades the ratings of the senior secured notes of rated vessels; ratings remain under review for downgrade
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