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 upgrades EFG Bank's deposit ratings to Aa2; confirms a2 BCA

06 May 2015

EFG International's issuer rating upgraded to A1, stable outlooks assigned

Frankfurt am Main, May 06, 2015 -- Moody's Investors Service has today upgraded EFG Bank's local and foreign currency deposit ratings to Aa2 from A2. At the same time, the rating agency confirmed the bank's baseline credit assessment (BCA) of a2 and the Prime-1 short-term deposit ratings were affirmed.

Furthermore, Moody's upgraded EFG International's (EFGI) issuer ratings to A1, from A3, and its outstanding non-cumulative preferred stock (Bons de Participation) rating to Baa2 (hyb) from Baa3 (hyb).

The outlook on all long-term ratings is now stable while the outlook on EFGI's Bons de Participation will be withdrawn due to Moody's own business reasons. Please refer to Moody's Investors Service Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.

Moody's also assigned a Counterparty Risk Assessment (CR Assessment) to both EFG Bank and EFGI of Aa2(cr)/Prime-1(cr) and a Baa3 (hyb) rating to the 'high trigger' additional Tier 1 (AT1) securities to be issued by EFGI. Please see the report "EFG International AG: Moody's Rates EFG International's Additional Tier 1 Capital Securities at Baa3 (hyb)", which will be published later today, for further details on the features of this instrument: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_180994.

These rating actions - plus the associated actions on these entities - conclude the reviews on EFG Bank's as well as EFGI's ratings initiated on 17 March 2015 that resulted from the implementation of Moody's new bank rating methodology.

A full list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

-- CONFIRMATION OF THE a2 BCA

The confirmation of EFG Bank's a2 BCA takes into account EFGI's announced plans to issue high-trigger additional Tier 1 securities. The planned issuance supports the bank's BCA because Moody's understands that the securities' proceeds will constitute additional loss-absorption capacity prior to any (unlikely) resolution for EFG Bank.

The transaction will also help strengthen the group's capital base. Moody's expects EFGI's total capital ratio to improve by approximately 170-350 basis points (end-2014: 18.8%). The same considerations on capital apply to the firm's leverage ratio, which the rating agency expects will improve to well above 4.0% upon the issuance of the AT1 securities, from 3.3% reported at end-2014, dependent on the final volume issued.

In confirming EFG Bank's a2 BCA, Moody's has at the same time taken into account various business challenges over the next 12-18 months and believes that EFG Bank will be able to further respond to and withstand these challenges, which are: (1) EFG Bank's business risks and susceptibility to bank secrecy probes, which might pose significant reputational or litigation risks in an adverse scenario; and (2) EFG Bank's limited ability to significantly improve its profitability and efficiency metrics in a difficult operating environment for private bank franchises in Switzerland (Aaa stable) and globally.

-- UPGRADE OF EFG BANK'S AND EFGI'S LONG-TERM RATINGS

The upgrade of EFG Bank's long- term deposit ratings to Aa2 results from the implementation of Moody's Loss Given Failure (LGF) analysis. The rating agency's LGF analysis indicates a very low loss-given-failure for EFG Bank's wholesale deposits because of the substantial volume of deposits and the amount of debt subordinated to it, leading to a three-notch uplift from its a2 adjusted BCA. The Aa2 long-term deposit ratings do not incorporate any uplift from the Swiss parent holding, EFGI, which holds a 100% stake in EFG Bank. Given that EFG Bank accounts for the majority of EFGI's balance sheet, Moody's continues to consider the extent of additional support available to be limited.

Today's upgrade of EFGI's issuer ratings to A1 from A3 reflects (1) EFG Bank's a2 BCA; and (2) the low loss-given-failure for EFGI's senior debt issuance resulting from the likely loss absorption provided by the volume of senior debt (largely structured notes), leading to a one-notch uplift from EFG Bank's a2 adjusted BCA.

Moody's also does not assign any rating uplift for EFG Bank nor EFGI from government support, reflecting the rating agency's assumption of a low probability of systemic support in the event of a stress scenario given their marginal importance to the domestic deposit-taking market and the Swiss payment system.

-- RATIONALE FOR THE STABLE OUTLOOK ON THE LONG-TERM RATINGS

Moody's says that the bank and the group will show improvements both in profitability and regulatory capital as well as leverage ratios over the next 12-18 months, and has thus assigned a stable outlook on EFG Bank's long-term deposit ratings as well as EFGI's issuer ratings. Moreover, solid capital buffers and sound liquidity metrics at both the bank and the consolidated group mitigate potential pressures on the bank's credit profile.

-- RATIONALE FOR THE CR ASSESSMENT

Moody's also assigned a Aa2(cr)/Prime-1(cr) CR Assessment to EFG Bank and EFGI. The CR Assessment is an opinion of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings in that the CR Assessment (1) considers only the risk of default rather than the likelihood of default and the expected financial loss suffered in the event of default and (2) applies to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion on the counterparty risk related to a bank's covered bonds, derivatives (e.g. swaps), letters of credit and other contractual commitments. In assigning the CR Assessment, Moody's evaluates the issuer's standalone strength and the likelihood, should the need arise, of affiliate and government support, as well as the anticipated seniority of counterparty obligations under Moody's Loss Given Failure framework. The CR Assessment also assumes that authorities will likely take steps to preserve the continuity of a bank's key operations, maintain payment flows, and avoid contagion if the bank enters a resolution process.

-- RATIONALE FOR THE ASSIGNMENT OF THE Baa3(hyb) HIGH-TRIGGER AT1 SECURITIES RATING

The Baa3 (hyb) rating is assigned on the basis of the likelihood of EFGI's Basel 3 regulatory CET1 ratio falling below the 7% write-down trigger, the probability of a bank-wide failure and loss severity, if either or both events occur. Moody's assesses this probability using a model-based approach that incorporates the firm's creditworthiness, its most recent regulatory CET1 level, and other qualitative considerations.

Moody's does not assign a baseline credit assessment (BCA) to EFGI because it is not an operating entity. However, the rating agency takes into account the a2 BCA of its main operating entity EFG Bank, which accounts for the vast majority of EFGI's assets. The other input to the model is EFGI's last reported fully-loaded regulatory CET1 ratio of 14.4% as at end-2014.

The model-based outcome is a Baa3 (hyb) rating. In addition, Moody's ran a sensitivity analysis on EFGI that factors in changes to the group-level regulatory CET1 ratio and EFG Bank's a2 BCA. The outcome of this analysis confirms that a Baa3 (hyb) rating is resilient under the main plausible scenarios. The rating is not constrained by the issuer-specific non-viability security rating cap (Baa2).

-- WHAT COULD MOVE THE RATINGS UP/DOWN

Given the challenging macroeconomic conditions, upward pressure on the BCA, EFG Bank's deposit ratings as well as EFGI's issuer ratings is currently unlikely.

Positive rating pressure could arise from (1) a meaningful improvement in the bank's capital levels, accompanied by strong deleveraging significantly improving EFG Bank's regulatory leverage ratio; (2) further growth in assets under management in line with or above stated targets (5% net new money growth per year), thereby developing the franchise and market position further; (3) markedly improved profitability and/or efficiency ratios; and (4) continued reduction and/or maintenance of manageable intra-group exposures.

An upgrade of EFGI's issuer rating would likely follow an upgrade of EFG Bank's ratings. Alternatively, upward pressure on the group rating could result from a higher contribution to earnings from the non-private banking businesses at the group level, provided that (1) the cash flows of such contributions are significant and recurrent; (2) earnings are derived from businesses that are largely unrelated to those of the main operating bank; and (3) this change does not result in an increase in double leverage or an increase in the group's risk profile.

The rating of the high-trigger AT1 securities could be upgraded if EFGI's capitalisation were to strengthen substantially and/or if Moody's raised EFG Bank's BCA.

Downward pressure on EFG Bank's standalone BCA and thus its deposit ratings could arise from (1) an unexpected decline in the bank's capital and/or leverage ratios; (2) any substantial outflow of client funds, client attrition or client-relationship officer attrition; (3) an overall weakening in the bank's financial profile, notably with regard to credit or market risk; (4) acquisitions that are unduly aggressive in terms of commercial, financial or operational risk; and/or (5) unexpectedly large goodwill write-offs or extraordinary charges.

A downgrade of EFGI's issuer ratings would likely arise from a downgrade of EFG Bank's ratings or if the volume of senior debt/structured notes falls meaningfully such that it no longer provides additional loss absorption (and thus rating uplift under Moody's LGF framework).

Downward pressure on the rating of the high-trigger AT1 securities could materialise if EFG Bank's a2 BCA was adjusted downwards by more than one notch in conjunction with the EFGI's CET1 ratio dropping below the current level on an ongoing and sustained basis. In addition, if the probability of a coupon suspension increased Moody's would also reconsider the rating.

LIST OF AFFECTED RATINGS

EFG Bank:

The following ratings were upgraded:

- Long-term bank deposit ratings (local and foreign currency) to Aa2, from A2, stable outlook

The following ratings were affirmed:

- Short-term bank deposit ratings (local and foreign currency) of Prime-1

The following rating inputs were confirmed:

- Baseline credit assessment and adjusted baseline credit assessment of a2

The following rating inputs were assigned:

- Counterparty Risk Assessment of Aa2 (cr)/Prime-1 (cr)

EFG International:

The following ratings were upgraded:

- Issuer ratings (local and foreign currency) to A1, from A3, stable outlook

- Preferred stock non-cumulative debt rating (Bons de Participation) to Baa2 (hyb), from Baa3 (hyb), outlook will be withdrawn

The following rating was assigned:

- Preferred stock non-cumulative debt rating (high-trigger additional Tier1 securities) of Baa3 (hyb)

The following rating inputs were assigned:

- Counterparty Risk Assessment of Aa2 (cr)/Prime-1 (cr)

PRINCIPAL METHODOLOGY

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.

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.

Michael Rohr
Vice President - Senior Analyst
Financial Institutions Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's upgrades EFG Bank's deposit ratings to Aa2; confirms a2 BCA
No Related Data.
© 2020 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/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S 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 INVESTORS SERVICE 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 INVESTORS SERVICE 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 $2,700,000. 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 JPY125,000 to approximately JPY250,000,000.

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

​​​​​​​​
Moodys.com