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 rating actions on five Kazakh financial institutions

07 Sep 2015

London, 07 September 2015 -- Moody's Investors Service has today taken rating actions on five Kazakh financial institutions. Moody's downgraded the Baseline Credit Assessments (BCAs) and long-term senior unsecured debt and deposit ratings of ATF Bank, Kazkommertsbank and Eurasian Bank. It has also downgraded the BCA of SB Sberbank JSC, affirmed its deposit ratings and changed the outlook on those ratings to negative from stable. Moody's has affirmed and also changed to negative from stable the outlook on Halyk Savings Bank of Kazakhstan's long-term debt and deposit ratings.

The rating actions reflect the financial institutions' high exposure to foreign-currency lending and/or limited buffers to absorb the expected deterioration in their asset quality and follows the recent and pronounced depreciation of the country's currency, the tenge.

Many of the banks have foreign-currency loans to corporations and small and midsize enterprises that do not generate earnings in foreign currencies or that have not hedged their exposure. The currency depreciation will have an impact on the borrowers' ability to service their foreign-currency loans, and will likely affect asset quality. The inflationary effect of a weaker currency could result in additional pressure on asset quality, particularly for the retail and SME segment because it erodes individuals' real purchasing power. The currency depreciation also lowers banks' capital adequacy levels as risk-weighted assets -- the denominator of capital adequacy ratios -- will increase in local-currency terms.

RATINGS RATIONALE

-- KAZKOMMERTSBANK

The downgrades of Kazkommertsbank's Baseline Credit Assessment to caa2 from caa1, senior unsecured debt ratings to Caa2 from Caa1 and long-term deposit ratings to B3 from B2 with a negative outlook, reflect the bank's very high level of problem assets that are only partially covered by loan loss reserves, high exposure to foreign-currency lending, and weak buffers to absorb the expected increase in loan loss reserves and risk-weighted assets. A large portion of the bank's problematic exposures was recently transferred to BTA Bank (BTA) and deconsolidated. Although Kazkommertsbank's NPLs dropped following this transfer, the underlying positive impact on the bank's asset quality was limited as Kazkommertsbank remains exposed to BTA.

According to the bank's H1 2015 unaudited IFRS consolidated report, 43% of Kazkommertsbank's gross loans are loans to BTA. These are mostly collateralised by problematic exposures and relatively illiquid real estate assets transferred to BTA from Kazkommertsbank. According to the regulatory filings at end-June 2015, another 17% of Kazkommertsbank's gross loans were overdue by more than one day. Based on the abovementioned profile Kazkommertsbank's loan book displays significant risks. Loan loss reserves amounting to 17% of gross loans will likely be insufficient to cover these risks, especially in the context of the recent tenge depreciation, the high share of the bank's foreign-currency-denominated loans(51% as at year-end 2013; the most recent publicly available data), and ongoing deterioration in the operating environment. As a result, and when combined with the rise in risk-weighted assets stemming from the currency depreciation, will depress the bank's total regulatory capital, which was at 13.7% at the end of July this year.

On the positive side, substantial amounts of long-term borrowings recently obtained from the National Distressed Assets Fund at rates much below the market average will support Kazkommertsbank's loss-making operations.

-- HALYK SAVINGS BANK OF KAZAKHSTAN (HALYK)

The change in the outlook to negative from stable on Halyk's long-term debt and deposit ratings reflects our expectation that the recent tenge depreciation and adverse market conditions may pressure Halyk's relatively strong financial metrics. Particularly, we expect: (1) the currently strong profitability to normalise at a lower level because of increased credit costs; and (2) high capital adequacy level to decline as the local currency depreciation inflates risk-weighted assets. Halyk reported that 27% of its net loans were denominated in foreign currencies as at end-June 2015; some of these borrowers do not have exports as a major revenue source.

The affirmation of the bank's debt and deposit ratings reflects the bank's relatively strong financial metrics with robust buffers to absorb mounting asset-quality pressure. As at end-July 2015, Halyk reported regulatory Tier 1 capital adequacy ratio (k1-2) at 19.1% while its loan loss reserves covered NPLs (overdue by more than 90 days) by over 100%. In addition, Halyk's profitability is sufficiently strong to absorb an expected increase in credit costs. Halyk reported a 3.9% return on-average assets in H1 2015 under IFRS. In the past 12 months, Halyk also attracted substantial amounts in long-term, tenge-denominated bonds which should support its net interest margin amid a challenging operating environment, the dollarisation of customer deposits and an overall increase in funding costs.

-- ATF BANK

The downgrades of ATF Bank's Baseline Credit Assessment to caa3 from caa2, senior unsecured debt ratings to Caa3 from Caa2 and long-term deposit ratings to Caa2 from Caa1 with a negative outlook reflect the bank's high exposure to foreign-currency lending, very high level of non-performing loans (NPLs), which are only partially covered by loan loss reserves, and weak buffers to absorb the expected increase in loan loss reserves and risk-weighted assets.

In accordance with ATF Bank's most recent IFRS report for H1 2015, 46% of ATF Bank's net loans were denominated in foreign currencies as at end-June 2015, while 21.6% of loans were overdue by more than 90 days. As a result of the recent tenge depreciation, the ongoing deterioration in the operating environment and loan loss reserves at only 12.8% of gross loans, asset erosion risks have now substantially increased while the bank's capital buffers appear to be modest. ATF Bank's return on average assets was just 0.5% in H1 2015, which is insufficient to absorb the expected deterioration in the bank's assets. While ATF Bank's total regulatory capital adequacy will be supported by the substantial amounts in subordinated debt raised in recent months, its Tier 1 capital adequacy ratio was at 10.1% as of end-June 2015. The latter represents a modest level in the context of asset quality risks and the depreciation, which will inflate risk-weighted asset and weaken capital adequacy metrics.

-- SB SBERBANK JSC

The change in outlook to negative from stable on SB Sberbank's deposit ratings is driven by the downgrade of the bank's standalone BCA to b3 from b2 and current negative outlook on the ratings of the parent, Russian Sberbank (Ba1/Ba2 negative; ba2). The downgrade of SB Sberbank's BCA reflects negative pressure on the bank's standalone credit profile from adverse market conditions, including a surge in problem loans, low loan loss reserves coverage and expectations for higher credit losses, which would constrain profitability.

SB Sberbank's problem loans (including individually impaired and 90+ overdue loans assessed on a collective basis) increased to 22.2% as of 1H2015 from 14.4% as of YE2014, whereas NPLs overdue more than 90 days increased to 6% as of 1H2015 from 4% as of YE2014, according to the bank's IFRS. Loan loss reserves accounted for 4.8% as of 1H2015. Moody's expects further deterioration in the bank's asset quality amid the seasoning of the bank's loan book accelerated by the recent tenge depreciation. 32% of the bank's loan book is denominated in foreign-currency, out of which around 37% don't have export revenues.

Given the currently insufficient loan loss reserve coverage of total problem loans, the bank will likely need to create additional provisions, which will further constrain its profitability. In addition, an increase in funding costs resulting from an expected higher rates environment will add further pressure on the bank's gradually declining net interest margin (4.8% as of 1H2015). Following the revaluation of foreign-currency assets and an increase in credit losses, Moody's estimates that the bank's capitalisation could decline by about 2-3% under rating agency's assumption. Although the drop could be partially offset if the bank were to request capital support from its parent -- Russian Sberbank. We continue to incorporates a very high probability of affiliate support for SB Sberbank from Russian Sberbank, resulting in three notches uplift from the bank's b3 BCA.

-- EURASIAN BANK

The downgrades of Eurasian Bank's Baseline Credit Assessment to caa1 from b2, senior unsecured debt ratings to Caa1 from B2 and long-term deposit ratings to Caa1 from B2 with a negative outlook reflect the severe and rapid deterioration of the bank's loan book, as evidenced by the sharp rise in overdue loans to 22.1% as at end-June 2015, from 14.7% as at end-December 2014. In Moody's view, Eurasian Bank's relatively low buffers are insufficient to withstand the impact of the expected loan book deterioration on capital adequacy metrics. As at end-June 2015, the bank reported loan loss reserves at 5.7% of gross loans, total regulatory capital adequacy ratio(k2) at 12%, and 0.5% return on average assets. The ongoing asset quality erosion increases the likelihood that Eurasian Bank's already modest regulatory capital ratios might rapidly deteriorate in the next 12 to 18 months. The depreciation of the local currency and ongoing deterioration in the operating environment could have an immediate impact on capital adequacy metrics and further accelerate asset quality weaknesses.

Although Eurasian Bank's shareholders might provide additional support to improve the bank's capital adequacy, Moody's considers such support might not fully mitigate abovementioned risks and ring-fence the bank's capital from a rapid erosion.

WHAT COULD MOVE THE RATINGS UP/DOWN

The ratings of the financial institutions affected by today's rating action could be lowered in case the risk absorption capacity and financial fundamentals of the affected entities erode beyond Moody's current expectations, as a result of the recent events. Conversely, improvements in Kazakhstan's economic growth prospects could stabilise the ratings at current levels..

LIST OF AFFECTED RATINGS

The following rating actions were taken:

KAZKOMMERTSBANK

- BCA and Adjusted BCA were downgraded to caa2 from caa1;

- Long-term LC and FC Deposit ratings were downgraded to B3 from B2, outlook was revised to negative;

- Short-term LC and FC Deposit ratings were affirmed at NP;

- Long-term FC Senior Unsecured ratings were downgraded to Caa2 from Caa1, outlook was revised to negative;

- Long-term FC Senior Unsecured medium term note program rating was downgraded to (P)Caa2 from (P)Caa1;

- Long-term FC BACKED Senior Unsecured rating was downgraded to Caa2 from Caa1, outlook was revised to negative;

- Long-term FC BACKED Subordinate rating was downgraded to Caa3 from Caa2;

- Long-term FC BACKED Junior Subordinated rating was downgraded to Ca(hyb) from Caa3(hyb);

- Long-term Counterparty Risk Assessment was downgraded to B2(cr) from B1(cr);

- Short-term Counterparty Risk Assessment was affirmed at NP(cr).

Outlook, changed to Negative from Stable

HALYK SAVINGS BANK OF KAZAKHSTAN

- BCA and Adjusted BCA were affirmed at ba3;

- Long-term LC and FC Deposit ratings were affirmed at Ba2, outlook was revised to negative;

- Short-term LC and FC Deposit ratings were affirmed at NP;

- Long-term LC and FC Senior Unsecured ratings were affirmed at Ba3, outlook was revised to negative

- Long-term FC BACKED Senior Unsecured rating was affirmed at Ba3, outlook was revised to negative

- Long-term Counterparty Risk Assessments were affirmed at Ba1(cr);

- Short-term Counterparty Risk Assessments were affirmed at NP(cr).

Outlook, changed to Negative from Stable

ATF BANK

- BCA and Adjusted BCA were downgraded to caa3 from caa2;

- Long-term LC and FC Deposit ratings were downgraded to Caa2 from Caa1, outlook remained negative;

- Short-term LC and FC Deposit ratings were affirmed at NP;

- Long-term FC Senior Unsecured rating was downgraded to Caa3 from Caa2, outlook remained negative;

- Long-term FC Junior Subordinate rating was affirmed at Ca(hyb);

- Long-term Counterparty Risk Assessment was downgraded to Caa1(cr) from B3(cr);

- Short-term Counterparty Risk Assessment was affirmed at NP(cr).

Outlook, remains Negative

EURASIAN BANK

- BCA and Adjusted BCA were downgraded to caa1 from b2;

- Long-term LC and FC Deposit ratings were downgraded to Caa1 from B2, outlook was revised to negative;

- Short-term FC Deposit rating was affirmed at NP;

- Long-term LC Senior Unsecured rating was downgraded to Caa1 from B2, outlook was revised to negative;

- Long-term LC Subordinate rating was downgraded to Caa2 from B3;

- Long-term Counterparty Risk Assessment was downgraded to B3(cr) from B1(cr);

- Short-term Counterparty Risk Assessment was affirmed at NP(cr).

Outlook, changed to Negative from Stable

SB SBERBANK JSC

- BCA downgraded to b3 from b2;

- Adjusted BCA affirmed at ba3;

- Long-term LC and FC Deposit ratings were affirmed at Ba3, outlook revised to negative;

- Short-term LC and FC Deposit ratings were affirmed at NP;

- Long-term Counterparty Risk Assessments were affirmed at Ba2(cr);

- Short-term Counterparty Risk Assessments were affirmed at NP(cr).

Outlook, changed to Negative from Stable

The principal methodology used in these ratings was Banks published in March 2015. 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.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Semyon Isakov
Asst Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Limited, Russian Branch
7th floor, Four Winds Plaza
21 1st Tverskaya-Yamskaya St.
Moscow 125047
Russia
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Yves Lemay
MD-Banking & Sovereign
Financial Institutions 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 rating actions on five Kazakh financial institutions

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