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
Sie sind im Begriff, von der lokalen Website für Deutschland auf die globale Website in englischer Sprache zu wechseln. Möchten Sie fortfahren?
Diesen Hinweis nicht wieder anzeigen.
Ja
Nein
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 NatWest Markets Plc's long-term deposit and senior unsecured ratings to A3

24 Nov 2020

Outlook remains positive

London, 24 November 2020 -- Moody's Investors Service ("Moody's") today upgraded the long-term deposit and senior unsecured debt ratings of NatWest Markets Plc (NatWest Markets) to A3 from Baa2, and maintained the positive outlook on these ratings. The rating agency also affirmed the bank's ba2 standalone Baseline Credit Assessment (BCA), upgraded the Adjusted BCA to baa3 from ba1, upgraded the subordinated and junior subordinated ratings to Ba1 and Ba2(hyb) from Ba2 and Ba3(hyb) respectively, and affirmed the A3 long-term Counterparty Risk Ratings (CRR) and the A3(cr) long-term Counterparty Risk Assessments (CR Assessment).

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

The rating action reflects Moody's view that, in light of the recently announced accelerated de-risking, restructuring and re-focusing of the business, NatWest Markets' business model will be more aligned with the corporate franchise of the ring-fenced banks of NatWest Group plc (NatWest Group, senior unsecured Baa2 positive, notional BCA baa2). As a result, the rating agency now considers the probability of affiliate support to have increased, and the losses falling upon NatWest Markets' creditors in the event of the bank's failure to be lower. On the other hand, Moody's believes the probability of government support for the bank's counterparty obligations, contractual commitments and operating obligations to have declined as the bank has shrunk.

RATINGS RATIONALE

On 30 October 2020, NatWest Group announced that it accelerated the restructuring plan of NatWest Markets, and that it expects to achieve the majority of the planned risk-weighted asset (RWA) reduction to around GBP20 billion[1] (from GBP37.9 billion at end 2019[2]) by the end of 2021. On 14 February 2020, NatWest Group had indicated an unspecified medium-term horizon to reach the RWA reduction, and that it would shift its focus from institutional clients to being focused on serving the corporate clients of the ring-fenced banks of NatWest Group. The RWA reduction is being driven by a combination of exiting products and customers deemed non-core based on the strategy announced.

Moody's said that the affirmation of NatWest Markets' ba2 BCA reflects the rating agency's view that the bank remains subject to high market and operational risk, will likely book losses in 2020 and 2021, and that the execution risk associated with NatWest Markets' restructuring is high. These risks are incorporated in Moody's existing negative qualitative adjustments for Opacity and Complexity and Corporate Behaviour, and are partially mitigated by NatWest Markets' strong capital and liquidity.

The upgrade of NatWest Markets' Adjusted BCA to baa3 from ba1, reflect Moody's assessment of a higher probability of support from NatWest Group. In particular, Moody's revised the affiliate support assumption for NatWest Markets to 'Very High' from 'High', leading to a further two-notch uplift to NatWest Markets' Adjusted BCA, from one previously.

Moody's believes that NatWest Group will be more likely to support NatWest Markets due to the latter's re-focused business model, which will be more closely aligned with the corporate franchise of the ring-fenced banks of NatWest Group (mainly National Westminster Bank Plc and The Royal Bank of Scotland plc, long-term deposit rating A1 stable, long-term issuer rating A2 positive, BCA baa1 for both banks), and NatWest Markets' prospective reduced size and product complexity.

The upgrade of the bank's long-term deposit and senior unsecured debt ratings to A3 from Baa2 reflects the upgrade of the Adjusted BCA and lower losses upon the bank's failure. In particular, Moody's lowered the at-failure asset loss rate for NatWest Markets to 8% from 13%, leading to extremely low loss-given-failure for NatWest Markets' deposits and senior unsecured debt, versus very low previously. This in turn led to a three-notch uplift for the long-term deposit and senior unsecured debt ratings from the bank's Adjusted BCA, from two previously.

Notwithstanding NatWest Markets' higher intrinsic risk than the rest of the group due to its focus on capital markets activities, Moody's believes that the new strategy and product focus of NatWest Markets would now lead to lower asset losses at failure. According to Moody's, NatWest Markets' shift away from institutional clients towards corporate customers common to other group businesses would reduce the risk of a rapid loss of franchise value in the event of the bank's failure.

OUTLOOK

The outlook on NatWest Markets' long-term deposit and senior unsecured debt ratings remains positive.

The outlook reflects Moody's expectations that the bank's financial fundamentals will improve within the next three years, and the progress of the bank's ambitious restructuring plan will enable NatWest Markets to generate more stable and sustainable, albeit modest, profits.

The outlook also reflects the potentially higher capacity of NatWest Group to support NatWest Markets, as indicated by the positive outlook on NatWest Group's ratings.

COUNTERPARTY RISK RATINGS AND COUNTERPARTY RISK ASSESSMENT

The affirmation of NatWest Markets' long-term CRRs and CR Assessment reflects the one-notch upgrade of the Adjusted BCA, and Moody's revision of the government support assumption for the bank's counterparty obligations, contractual commitments and operating obligations to 'Low' from 'Moderate'. The revised assumptions, which lead to no uplift to the bank's long-term CRRs and CR Assessment from one notch previously, reflect Moody's assessment that NatWest Markets' reduced capital markets activities will be of less systemic importance and hence less likely to be supported by the UK government (Aa3 stable).

NATWEST MARKETS N.V.

Moody's upgraded NatWest Markets N.V.'s long-term deposit and issuer ratings to A3 from Baa2, and it maintained the positive outlook on these ratings. The rating agency also affirmed the bank's ba2 standalone BCA, upgraded the Adjusted BCA to baa3 from ba1, upgraded the subordinated debt ratings to Ba1 from Ba2, and it affirmed the A3 long-term CRR and the A3(cr) long-term CR Assessment.

The action reflects the fact that the ratings and assessments of NatWest Markets N.V. remain harmonized with those of NatWest Markets, given the high level of operational integration between the two banks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

NatWest Markets' A3 long-term deposit and senior unsecured debt ratings could be upgraded if there were an upgrade of the bank's ba2 standalone BCA, or an upgrade of the baa2 notional BCA of NatWest Group.

Moody's said that the ba2 BCA of NatWest Markets could be upgraded if there were a successful completion of the bank's restructuring, which would lead to a significantly lower asset-risk profile following the runoff or disposal of the residual legacy assets, and a sustainable improvement in profitability.

A downgrade of NatWest Markets' A3 long-term deposit and senior unsecured debt ratings is unlikely, as indicated by the current positive outlook. Nevertheless, the A3 long-term deposit and senior unsecured debt ratings could be downgraded if there were a multi-notch downgrade of NatWest Markets' BCA or a significant reduction in the stock of more junior bail-in-able instruments.

NatWest Markets' ba2 BCA could be downgraded if there were a substantial increase in trading activities; a significant decline in the bank's capital; a significant risk management failure; or a deterioration in its liquidity.

LIST OF AFFECTED RATINGS

Issuer: NatWest Markets Plc

..Upgrades:

....Long-term Bank Deposits, upgraded to A3 from Baa2, outlook remains Positive

....Adjusted Baseline Credit Assessment, upgraded to baa3 from ba1

....Senior Unsecured Regular Bond/Debenture, upgraded to A3 from Baa2, outlook remains Positive

....Backed Senior Unsecured Regular Bond/Debenture, upgraded to A3 from Baa2, outlook remains Positive

....Senior Unsecured Medium-Term Note Program, upgraded to (P)A3 from (P)Baa2

....Subordinate Regular Bond/Debenture, upgraded to Ba1 from Ba2

....Junior Subordinated Regular Bond/Debenture, upgraded to Ba2(hyb) from Ba3(hyb)

..Affirmations:

....Long-term Counterparty Risk Ratings, affirmed A3

....Short-term Counterparty Risk Ratings, affirmed P-2

....Short-term Bank Deposits, affirmed P-2

....Short-term Deposit Note/CD Program, affirmed P-2

....Long-term Counterparty Risk Assessment, affirmed A3(cr)

....Short-term Counterparty Risk Assessment, affirmed P-2(cr)

....Baseline Credit Assessment, affirmed ba2

....Commercial Paper, affirmed P-2

....Other Short Term, affirmed (P)P-2

..Outlook Action:

....Outlook remains Positive

Issuer: NatWest Markets N.V.

..Upgrades:

....Long-term Bank Deposits, upgraded to A3 from Baa2, outlook remains Positive

....Long-term Issuer Rating, upgraded to A3 from Baa2, outlook remains Positive

....Adjusted Baseline Credit Assessment, upgraded to baa3 from ba1

....Senior Unsecured Medium-Term Note Program, upgraded to (P)A3 from (P)Baa2

....Subordinate Regular Bond/Debenture, upgraded to Ba1 from Ba2

..Affirmations:

....Long-term Counterparty Risk Ratings, affirmed A3

....Short-term Counterparty Risk Ratings, affirmed P-2

....Short-term Bank Deposits, affirmed P-2

....Long-term Counterparty Risk Assessment, affirmed A3(cr)

....Short-term Counterparty Risk Assessment, affirmed P-2(cr)

....Baseline Credit Assessment, affirmed ba2

....Commercial Paper, affirmed P-2

....Other Short Term, affirmed (P)P-2

..Outlook Action:

....Outlook remains Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security 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 credit rating action on the support provider and in relation to each particular credit 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 credit rating action, and whose ratings may change as a result of this credit 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 ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

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

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

REFERENCES/CITATIONS

[1] Public Audited Financial Statements 31-Dec-2019

[2] Public Interim Financial Statements 30-Sep-2020

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.

Edoardo Calandro
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Nicholas Hill
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 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
Client Service: 44 20 7772 5454

No Related Data.
© 2021 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 JPY125,000 to approximately JPY550,000,000.

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