Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
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 information 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
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.
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
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.
13 Feb 2009
Paris, February 13, 2009 -- Moody's has today announced that it has placed the ratings of Fortis
Insurance Belgium and Fortis Group under review for possible downgrade.
A list of all the ratings is available at the end of the press release.
The rating actions follow Fortis' shareholders vote to disapprove
the sale of Fortis Bank SA/NV to the Belgian State and the subsequent
refusal of the revised agreement signed between BNP Paribas, Fortis
and the Belgian government.
The review for possible downgrade reflects the new uncertainties on the
future of the Fortis Group resulting from this vote, considerable
uncertainties in respect of the extent of any support from BNP Paribas
to Fortis, and the increased risk profile of the Group.
On the 11th of February, Fortis shareholders voted to reject the
sale of 50% plus one share of Fortis Bank SA/NV to the Belgian
State, and also to reject the subsequent sale of 75% of Fortis
Bank SA/NV and 10% of Fortis Insurance Belgium to BNP Paribas.
As a result, the originally agreed "protocole d'accord"
remains valid, whereby BNP Paribas would acquire 75% of Fortis
Bank SA/NV and 100% of Fortis Insurance Belgium.
Moody's notes that the outcome of this vote has contributed to a
high level of legal complexity around the dismantling of the Fortis Group.
First, although Moody's notes that the sale of Fortis Bank
SA/NV to the Belgian State has already been completed, the negative
vote of the shareholders might lead to legal disputes between Fortis'
shareholders and the Belgian government. At the same time,
in spite of the negative vote of the shareholders, the original
"protocole d'accord" signed in October 2008 between
Fortis, BNP Paribas and the Belgian state remains a binding contract
for the three parties. However, Moody's notes that
there is some likelihood that the original agreement may not complete
as originally planned, as a result of the shareholder vote and potential
legal interventions. As a consequence, upwards rating pressure
at Fortis Insurance Belgium is reduced. Furthermore, in a
scenario where BNP Paribas still proceeds with the transactions,
Moody's considers that any associated legal uncertainties,
including potential counter-claims from Fortis shareholder groups,
could be complex and take time to resolve, thus creating potential
damages to the insurance company franchise and to Fortis Group in the
short-term. Finally, Moody's added that the
risk profile of Fortis Holding has the potential to increase, as
a consequence of its potential obligation to finance Royal Park Investments
(the SPV set up to manage some structured investments initially held by
Fortis Bank SA/NV) up to EUR6.9 billion.
Moody's review for possible downgrade will therefore focus on the
extent to which a) the original agreement is completed as originally outlined
b) the uncertainties of the last months have damaged the franchise of
Fortis Insurance Belgium and the financial situation of the company.
In the event of the "protocole d'accord" not being completed,
Moody's added that, in terms of ratings for Fortis Holding
companies, Moody's ratings reflect the financial strength
of the Group's operating insurance companies as well as the subordination
of the holding company creditors (traditionally captured through a three
notch difference between the insurance financial strength rating of an
operating company and the issuer rating of a holding company).
Nonetheless, Moody's review will also focus on the new strategy
of the Group and the specific resources and obligations of the holding
companies (including the off-balance sheet items) and will consider
whether additional notching is required to reflect the holding companies'
The review for possible downgrade for the P-2 short-term
rating of the Group will focus on the liquidity position of the Group
in light of the recent initiatives launched by the Group to repay its
senior obligations and the potential increased investment in the structured
Commenting more specifically on the hybrid debts (FRESH and debts issued
by Fortis Hybrid Financing), the rating agency mentioned that the
respective mandatory convertible and junior / preferred status of these
securities could imply higher levels of loss as the Fortis Group profile
deteriorates, and Moody's review will also consider the likelihood
of breach of the mandatory deferral triggers and whether any additional
notching is necessary for these junior instruments. This also applies
for the CASHES issued by Fortis Bank SA/NV but including mandatory deferral
based on Fortis Group's financial situation.
The following ratings have been affirmed and placed under review for possible
- Fortis Insurance Belgium -- insurance financial
strength rating at A2
- Fortis SA/NV -- long term issuer rating at Baa2
- Fortis N.V. - long term issuer rating at
- Fortis Finance N.V. -- backed senior
unsecured debt rating at Baa2
- Fortis Finance N.V. -- backed senior
unsecured MTN debt rating at Baa2
- Fortis Finance N.V. -- backed subordinated
MTN debt rating at Baa3
- Fortis Finance N.V. -- backed junior
subordinated MTN debt rating at Baa3
- Fortis Finance N.V. -- backed commercial
paper at P-2
- Fortis Hybrid Financing -- backed junior subordinated
debt rating at Ba1
- Fortis Hybrid Financing -- backed preferred stock
debt rating at Ba1
- Fortfinlux S.A. -- backed junior
subordinated debt rating at Ba1
- Fortis Bank SA/NV -- CASHES at Ba1
The date of the prior rating action on Fortis Insurance Belgium and Fortis
Group's ratings was on 4 February 2009, when Moody's placed Fortis'
ratings under review with direction uncertain following a revised agreement
between Fortis, BNP Paribas and the Belgian State.
Headquartered in Brussels, Belgium and in Utrecht, the Netherlands,
Fortis Group had total assets of EUR 974.3 billion and reported
shareholders' equity (including minority interest) of EUR 30.4
billion as of June 30th 2008.
The principal methodologies used in rating Fortis Insurance Belgium,
Fortis SA/NV, Fortis N.V. and Fortis' funding vehicles
are "Moody's Global Rating Methodology for Property and Casualty Insurers"
and "Moody's Global Rating Methodology for Life Insurers", 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 these issuers can also be found in the Credit Policy & Methodologies
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's places Fortis Insurance Belgium and Fortis Group's ratings under review for possible downgrade
Financial Institutions Group
Moody's France S.A.
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.