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 takes action in three UK non-conforming residential mortgage-backed securities

21 Apr 2015

London, 21 April 2015 -- Moody's Investors Service has today upgraded the ratings of 16 notes, kept five of these notes on review for upgrade and affirmed the ratings of 12 notes in three UK non-conforming residential mortgage-backed securities (RMBS) transactions: Great Hall Mortgages No. 1 Plc Series 2006-01 (Great Hall 2006-01) , Great Hall Mortgages No. 1 Plc Series 2007-01 (Great Hall 2007-01) and Great Hall Mortgages No. 1 Plc Series 2007-02 (Great Hall 2007-02).

Today's rating action concludes the review of 14 notes placed on review on 9 December 2014.

Please refer to the end of the Ratings Rationale section for a list of affected ratings.

RATINGS RATIONALE

Today's rating upgrades reflect (1) better than expected performance and (2) the deleveraging of the transactions.

Today's placement on review for upgrade of five notes reflects the review for upgrade of the swap counterparty and the expected level of its Counterparty Risk ("CR") Assessment.

Today's rating affirmations reflect the sufficiency of credit enhancement.

REVISION OF KEY COLLATERAL ASSUMPTIONS

Moody's has reassessed its lifetime loss expectation taking into account the collateral performance of the transactions to date. The level of loans delinquent by more than 90 days decreased in all three transactions. As a result, Moody's reduced the Expected Loss to 2.5% in Great Hall 2006-01 down from 2.8% of the original pool balance. In Great Hall 2007-01, Moody's reduced the Expected Loss to 4.1% down from 5.0% of the original pool balance and in Great Hall 2007-02, Moody's reduced the Expected Loss to 4.8% down from 6.0% of the original pool balance.

Moody's has also revised MILAN CE assumption to 16% in Great Hall 2006-01, to 20% in Great Hall 2007-01 and to 21% in Great Hall 2007-02 from 21%, 26.50% and 27.5% respectively.

Moody's quantitative analysis incorporates the ratings' sensitivity to increases in key collateral assumptions. The increases included stress of 1.50x the current EL assumption and 1.2x MILAN CE. Moody's sensitivity analysis would typically expect to see the ratings fall by no more than one to three notches using these stressed assumptions. The results of this analysis limited the potential upgrade of the ratings on the Da and Db in Great Hall 2006-01, Class Da and Db in Great Hall 2007-01 and Ca, Cb, Da and Db in Great Hall 2007-02.

COUNTERPARTY RISK EXPOSURE AND UPDATES TO MOODY'S STRUCTURE FINANCE RATING METHODOLOGIES

The ratings of the Classes A2a, A2b, Ba and Bb notes of Great Hall 2006-01, Classes A2a, A2b, Ba and Bb notes of Great Hall 2007-01 and Classes Aa, Ab and Ac of Great Hall 2006-02 are constrained by operational risk.

Western Mortgage Services Limited (NR), a subsidiary of Co-Operative Bank Plc (Caa2/NP) acts as servicer in the three transactions, with the Co-Operative Bank Plc itself acting as master servicer. Moody's considers that the transactions are exposed to servicer disruption risk as there is no back-up servicing arrangements in case of servicer disruption.

However, the Bank of New York Mellon (Aa2/P-1), acts as cash manager, investment and issuer account bank in the three transactions. In addition, the transactions benefit from a liquidity facility and reserve funds which partially offset the lack of back-up servicing arrangement.

Moody's also assessed the default probability of each transaction's account bank providers by referencing the bank's deposit rating.

Finally, Moody's analysis considered the risks of additional losses on the notes if they were to become unhedged following a swap counterparty default by using the CR Assessment as reference point for swap counterparties. In addition Moody's uses internal guidance on the CR Assessments to assess the rating impact on outstanding structured finance transactions. The internal guidance is in line with the guidance published in its updated bank rating methodology and its responses to frequently asked bank methodology-related questions. As a result, Moody's has placed on review for upgrade Classes Ca and Cb notes of Great Hall 2006-01, Classes Ca and Cb notes of Great Hall 2007-01 and Class Ba of Great Hall 2007-02, reflecting the placement on review for upgrade of JPMorgan Chase Bank, N.A. (Aa3/P-1) LT deposit rating. JPMorgan Chase Bank, N.A. is the parent of JPMorgan Chase Bank, N.A., London Branch (Aa3/(P)P-1), which acts as the swap counterparty in the three transactions.

Moody's incorporated the updates to its structured finance methodologies in its analysis of the transactions affected by today's rating actions (see "Moody's updates several structured finance rating methodologies in light of its new counterparty risk assessment for banks," published on 16 March 2015 - http://www.moodys.com/viewresearchdoc.aspx?docid=PR_320674).

Principal Methodology:

The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in January 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) deleveraging of the capital structure and (3) improvements in the credit quality of the transaction counterparties.

Factors or circumstances that could lead to a downgrade of the ratings include (1) performance of the underlying collateral that is worse than Moody's expects, (2) deterioration in the notes' available credit enhancement and (3) deterioration in the credit quality of the transaction counterparties.

List of Affected Ratings:

Issuer: Great Hall Mortgages No. 1 Plc Series 2006-01

....GBP 216.3M Class A2a Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....EUR 175M Class A2b Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....GBP 25.8M Class Ba Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Affirmed Aa3 (sf)

....EUR 7.5M Class Bb Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Affirmed Aa3 (sf)

....GBP 11.5M Class Ca Notes, Upgraded to A1 (sf) and Remains On Review for Upgrade; previously on Dec 9, 2014 A3 (sf) Placed Under Review for Upgrade

....EUR 8M Class Cb Notes, Upgraded to A1 (sf) and Remains On Review for Upgrade; previously on Dec 9, 2014 A3 (sf) Placed Under Review for Upgrade

....GBP 6M Class Da Notes, Upgraded to A3 (sf); previously on Dec 19, 2013 Affirmed Baa3 (sf)

....EUR 11.5M Class Db Notes, Upgraded to A3 (sf); previously on Dec 19, 2013 Affirmed Baa3 (sf)

....GBP 5.6M Class Ea Notes, Affirmed Ba2 (sf); previously on Dec 19, 2013 Affirmed Ba2 (sf)

Issuer: Great Hall Mortgages No. 1 Plc Series 2007-01

....GBP 264M Class A2a Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....EUR 396M Class A2b Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....GBP 47.1M Class Ba Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Affirmed Aa3 (sf)

....EUR 55.6M Class Bb Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Affirmed Aa3 (sf)

....GBP 14M Class Ca Notes, Upgraded to A1 (sf) and Remains On Review for Upgrade; previously on Dec 9, 2014 Baa3 (sf) Placed Under Review for Upgrade

....EUR 33.4M Class Cb Notes, Upgraded to A1 (sf) and Remains On Review for Upgrade; previously on Dec 9, 2014 Baa3 (sf) Placed Under Review for Upgrade

....GBP 19M Class Da Notes, Upgraded to Baa3 (sf); previously on Dec 9, 2014 B2 (sf) Placed Under Review for Upgrade

....EUR 22.9M Class Db Notes, Upgraded to Baa3 (sf); previously on Dec 9, 2014 B2 (sf) Placed Under Review for Upgrade

....GBP 14.5M Class Ea Notes, Upgraded to B3 (sf); previously on Dec 9, 2014 Ca (sf) Placed Under Review for Upgrade

Issuer: Great Hall Mortgages No. 1 Plc Series 2007-02

....GBP 278.8M Class Aa Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....EUR 30M Class Ab Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....US$ 600M Class Ac Notes, Affirmed Aa3 (sf); previously on Dec 19, 2013 Downgraded to Aa3 (sf)

....GBP 75.2M Class Ba Notes, Upgraded to A1 (sf) and Remains On Review for Upgrade; previously on Dec 9, 2014 A3 (sf) Placed Under Review for Upgrade

....GBP 9M Class Ca Notes, Upgraded to A2 (sf); previously on Dec 9, 2014 Ba2 (sf) Placed Under Review for Upgrade

....EUR 42.1M Class Cb Notes, Upgraded to A2 (sf); previously on Dec 9, 2014 Ba2 (sf) Placed Under Review for Upgrade

....GBP 2M Class Da Notes, Upgraded to Ba1 (sf); previously on Dec 9, 2014 Caa2 (sf) Placed Under Review for Upgrade

....EUR 28M Class Db Notes, Upgraded to Ba1 (sf); previously on Dec 9, 2014 Caa2 (sf) Placed Under Review for Upgrade

....GBP 7.5M Class Ea Notes, Upgraded to B3 (sf); previously on Dec 9, 2014 Ca (sf) Placed Under Review for Upgrade

....EUR 10M Class Eb Notes, Upgraded to B3 (sf); previously on Dec 9, 2014 Ca (sf) Placed Under Review for Upgrade

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody's did not receive or take into account a third-party assessment on the due diligence performed regarding the underlying assets or financial instruments related to the monitoring of these transactions in the past six months.

The analysis relies on an assessment of collateral characteristics to determine the collateral loss distribution, that is, the function that correlates to an assumption about the likelihood of occurrence to each level of possible losses in the collateral. As a second step, Moody's evaluates each possible collateral loss scenario using a model that replicates the relevant structural features to derive payments and therefore the ultimate potential losses for each rated instrument. The loss a rated instrument incurs in each collateral loss scenario, weighted by assumptions about the likelihood of events in that scenario occurring, results in the expected loss of the rated instrument.

Moody's quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows. Moody's weights the impact on the rated instruments based on its assumptions of the likelihood of the events in such scenarios occurring.

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.

Gaby Trinkaus
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Christophe de Noaillat
MD - Structured Finance
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Iwona Fernandes
Associate Analyst
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's takes action in three UK non-conforming residential mortgage-backed securities
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