info

Yes No
Moodys.com
Terms of Use
REGULATORY
.
SUSTAINABILITY
.
DIVERSITY, EQUITY & INCLUSION
CAREERS
.
ABOUT US
.
CONTACT US
HOME
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
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
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”, 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 (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, 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.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             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.

 

4.             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.     

 

5.             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.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether 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 upgrades CarMax 2012-2 prime auto loan ABS and reviews 2011-3 for upgrade

15 Aug 2013

Approximately $1.6 billion of asset-backed securities affected

New York, August 15, 2013 -- Moody's Investors Service has upgraded three subordinate tranches from 2012-2 transaction, placed on review for upgrade two subordinate tranches from 2011-3 transaction and affirmed 21 tranches from 2010, 2011 and 2012 transactions. The transactions are sponsored by CarMax Business Services LLC (CarMax).

RATINGS

Issuer: CarMax Auto Owner Trust 2010-3

Cl. A-3, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. B, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. C, Affirmed Aaa (sf); previously on May 29, 2013 Upgraded to Aaa (sf)

Cl. D, Affirmed Aa2 (sf); previously on May 29, 2013 Upgraded to Aa2 (sf)

Issuer: CarMax Auto Owner Trust 2011-1

Cl. A-3, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. B, Affirmed Aaa (sf); previously on Mar 25, 2013 Affirmed Aaa (sf)

Cl. C, Affirmed Aaa (sf); previously on May 29, 2013 Upgraded to Aaa (sf)

Cl. D, Affirmed Aa2 (sf); previously on May 29, 2013 Upgraded to Aa2 (sf)

Issuer: CarMax Auto Owner Trust 2011-2

Cl. A-3, Affirmed Aaa (sf); previously on Sep 23, 2011 Definitive Rating Assigned Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Sep 23, 2011 Definitive Rating Assigned Aaa (sf)

Cl. B, Affirmed Aaa (sf); previously on Aug 16, 2012 Upgraded to Aaa (sf)

Cl. C, Affirmed Aa3 (sf); previously on Aug 16, 2012 Upgraded to Aa3 (sf)

Cl. D, Affirmed A1 (sf); previously on Aug 16, 2012 Upgraded to A1 (sf)

Issuer: CarMax Auto Owner Trust 2011-3

Cl. A-3, Affirmed Aaa (sf); previously on Nov 11, 2011 Definitive Rating Assigned Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Nov 11, 2011 Definitive Rating Assigned Aaa (sf)

Cl. B, Affirmed Aaa (sf); previously on Nov 7, 2012 Upgraded to Aaa (sf)

Cl. C, Aa1 (sf) Placed Under Review for Possible Upgrade; previously on Nov 7, 2012 Upgraded to Aa1 (sf)

Cl. D, Aa3 (sf) Placed Under Review for Possible Upgrade; previously on Nov 7, 2012 Upgraded to Aa3 (sf)

Issuer: CarMax Auto Owner Trust 2012-2

Cl. A-2, Affirmed Aaa (sf); previously on Jun 15, 2012 Definitive Rating Assigned Aaa (sf)

Cl. A-3, Affirmed Aaa (sf); previously on Jun 15, 2012 Definitive Rating Assigned Aaa (sf)

Cl. A-4, Affirmed Aaa (sf); previously on Jun 15, 2012 Definitive Rating Assigned Aaa (sf)

Cl. B, Upgraded to Aaa (sf); previously on May 29, 2013 Aa2 (sf) Placed Under Review for Possible Upgrade

Cl. C, Upgraded to Aa1 (sf); previously on May 29, 2013 A1 (sf) Placed Under Review for Possible Upgrade

Cl. D, Upgraded to A1 (sf); previously on May 29, 2013 Baa1 (sf) Placed Under Review for Possible Upgrade

RATINGS RATIONALE

The actions are a result of build up in credit enhancement relative to remaining losses due to the non-declining reserve accounts and sequential payment structure of the transactions. The cumulative net loss expectations since the prior review remain unchanged for all outstanding pools. The transactions have performance triggers that allow the target and floor amounts of overcollateralization (OC) to decrease in months 30 and 36 should the cumulative net loss for the pools be below 2.00% or 2.35% respectively. The OC target (as a percentage of the remaining pool balance) steps down to 1.25% and 1.00% from the current level of 1.50% in the 2010-3 transaction, to 1.15% and 0.90% from the current level of 1.40% in the 2011-1 transaction, and to 0.75% and 0.50% from the current level of 1.00% in the 2011-2 should the triggers pass, as we anticipate. The OC floor (as a percentage of the original pool balance) steps down to 0.40% and 0.25% from 0.50% in all three transactions should the triggers pass as we expect. There are no performance triggers associated with 2011-3, 2012-2 and 2012-3 transactions. However, the OC grows from 0% to a target of 1.00% of the current pool balance with a floor of 0.50% of the initial pool balance for the 2011-3 and 2012-2 transactions, and from 0% to 0.50% of the current pool balance for 2012-3 transaction. Based on our current expected losses , we anticipate that 2010 and 2011 transactions will meet their performance criteria allowing the target amounts of OC, as well as the floor percentage of OC, to step down. Our rating actions take the step down levels of enhancement into account.

Below are key performance metrics (as of July 2013 distribution date)and credit assumptions for the affected transactions. Credit assumptions include Moody's expected lifetime cumulative net loss expectation (CNL) which is expressed as a percentage of the original pool balance; Moody's lifetime remaining CNL expectation and Moody's Aaa (sf) level which are expressed as a percentage of the current pool balance. The Aaa level is the level of credit enhancement that would be consistent with a Aaa (sf) rating for the given asset pool. Performance metrics include pool factor, which is the ratio of the current collateral balance and the original collateral balance at closing; total credit enhancement (expressed as a percentage of the outstanding collateral pool balance) which typically consists of subordination, overcollateralization, and reserve fund.

Issuer: CarMax Auto Owner Trust 2010-3

Lifetime CNL expectation -- 1.50%, prior expectation (May 2013) was 1.50%

Lifetime Remaining CNL expectation -- 1.40%

Aaa level -- 7.00%

Pool Factor -- 27.60%

Total Hard credit enhancement -- Cl. A 25.91%, Cl. B 16.49%, Cl. C 6.88%, Cl. D 2.36%

Excess Spread per annum - Approximately 6.5%

Issuer: CarMax Auto Owner Trust 2011-1

Lifetime CNL expectation --1.50%, prior expectation (May 2013) was 1.50%

Lifetime Remaining CNL expectation -- 1.25%

Aaa level -- 7.00%

Pool Factor -- 35.42%

Total Hard credit enhancement - Cl. A 19.47%, Cl. B 12.56%, Cl. C 5.66%, Cl. D 2.12%

Excess Spread per annum - Approximately 5.8%

Issuer: CarMax Auto Owner Trust 2011-2

Lifetime CNL expectation --1.60%, prior expectation (Aug 2012) was 1.60%

Lifetime Remaining CNL expectation -- 1.36%

Aaa level -- 8.00%

Pool Factor --45.54%

Total Hard credit enhancement - Cl. A 13.4%, Cl. B 9.33%, Cl. C 4.28%, Cl. D 1.65%

Excess Spread per annum - Approximately 6.7%

Issuer: CarMax Auto Owner Trust 2011-3

Lifetime CNL expectation --1.70%, prior expectation (Nov 2012) was 1.70%

Lifetime Remaining CNL expectation -- 1.59%

Aaa level -- 8.00%

Pool Factor -- 48.94%

Total Hard credit enhancement - Cl. A 12.98%, Cl. B 8.68%, Cl. C 5.01%, Cl. D 1.53%

Excess Spread per annum - Approximately 6.4%

Issuer: CarMax Auto Owner Trust 2012-2

Lifetime CNL expectation -- 2.25%, prior expected range (May 2013) was 2.00% - 2.25%

Lifetime Remaining CNL expectation -- 2.35%

Aaa level -- 10.00%

Pool Factor -- 65.28%

Total Hard credit enhancement - Cl. A 9.96%, Cl. B 6.74%, Cl. C 3.99%, Cl. D 1.38%

Excess Spread per annum - Approximately 7.2%

Ratings on the affected securities may be downgraded if the lifetime CNLs are higher by 20%.

The principal methodology used in these ratings was "Moody's Approach to Rating Auto Loan Backed ABS " published in May 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. From time to time, Moody's may, if warranted, change these expectations. Performance that falls outside the given range may indicate that the collateral's credit quality is stronger or weaker than Moody's had anticipated when the related securities ratings were issued. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics.

Primary sources of assumption uncertainty are the current macroeconomic environment, in which unemployment continues to remain at elevated levels, and strength in the used vehicle market. Moody's currently views the used vehicle market as much stronger now than it was at the end of 2008 when the uncertainty relating to the economy as well as the future of the U.S auto manufacturers was significantly greater. Overall, Moody's expects overall a sluggish recovery in most of the world's largest economies, returning to trend growth rate with elevated fiscal deficits and persistent unemployment levels.

REGULATORY DISCLOSURE

Moody's received and took into account one or more third-party assessments on the due diligence performed regarding the underlying assets or financial instruments in these transactions and the assessments had a neutral impact on the credit ratings.

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.

Yashasvini N Kasetty
Associate Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Eric Fellows
VP - Senior Credit Officer
Structured 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 upgrades CarMax 2012-2 prime auto loan ABS and reviews 2011-3 for upgrade
No Related Data.
© 2022 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 CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S 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 APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​
Moodys.com