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 Serbia's issuer rating to Ba3; stable outlook

17 Mar 2017

London, 17 March 2017 -- Moody's Investors Service, ("Moody's") has today upgraded the Government of Serbia's long-term issuer and senior unsecured ratings to Ba3 from B1. The outlook has been moved to stable (from positive).

The key drivers of the upgrade in Serbia's senior unsecured and long-term issuer ratings are:

(1) Serbia's notable fiscal consolidation which has halted the increase in its debt burden and reduces risks to the fiscal position; and

(2) Recent structural reforms which have increased the resilience of Serbia's economy, supporting potential growth.

The stable outlook reflects the balanced risks to Serbia's credit profile at the Ba3 rating level. While the pace of reforms may slow following the significant gains achieved in 2016, Moody's expects that Serbia's continued progress with the European Union (EU) accession process and likely further engagement with the International Monetary Fund (IMF) will help to limit the risk of a reversal of the reform progress achieved to date.

Concurrent with today's rating action, Moody's has also raised Serbia's long-term foreign-currency bond ceiling to Ba1 from Ba2, and the long-term foreign-currency bank deposit ceiling to B1 from B2. The short-term foreign-currency deposit and bond ceilings remain unchanged at NP. Finally, the long-term local-currency bond and deposit ceilings have been raised to Baa2 from Baa3.

RATINGS RATIONALE

RATIONALE FOR UPGRADE

-- FIRST DRIVER: FISCAL CONSOLIDATION HAS HALTED RISE IN DEBT BURDEN

The first driver of the upgrade is Serbia's notable fiscal consolidation which has halted the increase in its debt burden and reduces fiscal risks.

The Serbian authorities have executed a highly successful fiscal consolidation which has led to a marked improvement in its 2016 fiscal performance, with the first primary budget surplus since 2005 supporting a fall in the general government debt to GDP ratio to 74% of GDP at the end of 2016 after years of increases. Furthermore, fiscal reforms undertaken in conjunction with the IMF's 3-year Stand-by Arrangement (SBA) have improved the structure of the budget helping to limit fiscal risks in the future.

Serbia's strong budget execution has been supported by improvements in revenue generation, with general government revenue as a share of GDP rising by 2 percentage points to around 44%, the highest level since 2007 and above the median of Ba-rated peers (27.9%). Furthermore, the sharp reduction in permanent public sector employees by around 22,000 relative to end 2014, while slower than the targets set out in the government's rightsizing plan, has helped reduce expenditure on public wages to below 10% of GDP, in line with the EU average.

As a result, Serbia has met the conditionality set out in the IMF SBA by a significant margin, with the general government deficit reaching an estimated 1.4% of GDP in 2016, far exceeding the 4% target in the original budget for 2016. Moody's expects the deficit to decline moderately to 1.2% in 2017, benefitting from the recent improvements in revenue generation and a continued reduction in the public wage bill as a percent of GDP, despite budgeted wage increases in selected sectors. The debt burden will continue to gradually decline reaching just below 70% in 2018, although it will still remain above the median of Ba-rated peers (41.1% in 2015).

Improvements to the fiscal framework in Serbia will also support a conservative budgetary stance in the coming years. Moody's expects that continued progress on the restructuring of state-owned enterprises (SOEs), such as those which have improved the financial viability of the Serbian railways company, will help to reduce the fiscal costs associated with subsidies, unpaid taxes and guarantees for the sector.

Total state aid paid from the budget, while still sizeable, has fallen in each of the last two years, reaching 3.7% of GDP in 2016 (from 5.2% of GDP in 2014) after direct subsidies declined by around 16% relative to 2015, and Moody's expects these costs to continue to decline. Furthermore, future demands on the budget from SOEs will be reduced by the commitment of the authorities, as part of the IMF agreement, to strictly limit the issuance of state guarantees since 2015 and steps to prepay or refinance government guaranteed debt in 2017 on more favourable terms, given that activated guarantees accounted for a sizeable share of total state aid over the past three years.

-- SECOND DRIVER: STRUCTURAL REFORMS INCREASE ECONOMIC RESILIENCE TO SHOCKS

The second driver is Moody's view that recent structural reforms have increased the resilience of Serbia's economy to shocks.

The Serbian economy recovered strongly in 2016, growing by an estimated 2.8% of GDP, the highest rate of growth over the past 8 years. Notably, the economy is now less dependent on final consumption with a reorientation towards exports driven by strong foreign investment into the tradeable sector. Moody's expects economic growth will rise to 3.0% this year and reach 3.3% in 2018, noting that the diversity of growth drivers together with improvements to price stability will support potential growth in Serbia of between 3.5%-4%.

Moody's expects the wide-ranging labour market reform undertaken in 2014 will help sustain private consumption, reflecting the improvement in labour participation to 65.6% in 2016 from 63.3% in 2014 and recent strong employment growth driven by the private sector. Furthermore, consumer spending will be supported by the sharp drop in the Labour Force Survey unemployment rate to 13.0% in Q4 2016, one of the lowest rates in the Western Balkans, and the recent pick-up in consumer lending.

Furthermore, investment activity will benefit from improvements in Serbia's business environment (Serbia's ranking on the World Bank Doing Business Report reached 47th in 2017) and an easing of financing conditions. Notably, implementation of the Non-Performing Loan (NPL) action plan and the completion of the Special Diagnostic Studies has helped contribute to stronger financial sector soundness and confidence. Moody's expects strategically important infrastructure projects, such as Corridor 11, will also underpin investment activity.

Moreover, the recent broad-based recovery in exports, with almost all export sectors contributing to strong real growth in 2016, support the resilience of Serbia's relatively open economy. While Serbia remains reliant on the EU market for its exports, particularly Italy (Baa2 negative) and Germany (Aaa stable), it has also grown its exports to neighbouring countries such as Bosnia and Herzegovina (B3 stable), Montenegro (B1 negative) and Macedonia.

In addition, Moody's expects Serbia's achievements in maintaining price stability will be preserved. The decision by the National Bank of Serbia to reduce the inflation target by 1pp to 3% (with a 1.5pp tolerance band) reflects the improved macro fundamentals, reduced inflation expectations and stronger credibility of the central bank. Moody's expect an anchoring of inflation expectations at lower levels will help reduce longer-term interest rates and support potential growth.

Finally, improvements in external vulnerability help increase the resilience of the Serbian economy to external shocks. Moody's expects the current account deficit, which narrowed further in 2016 to an estimated 4.0% of GDP compared to around 6% of GDP in 2013/14, will continue to be broadly covered by foreign direct investment (FDI) which has become more diversified in recent years.

As a result, Moody's estimate of Serbia's external vulnerability index is expected to remain low at around 40% of foreign exchange reserves. Furthermore, lower inflation will continue to support the authorities' dinarisation strategy, which has seen the share of private sector deposits in local currency increasing to around 30% in 2016, improving resilience to exchange rate shocks.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects the balanced risks to Serbia's credit profile at the Ba3 rating level. While the pace of reforms may slow following the significant gains achieved in 2016, Moody's expects that Serbia's continued progress with the EU accession process and likely further engagement with the IMF will help to limit the risk of a reversal of the reform progress achieved to date.

Increased resistance to further reforms from vested interests, particularly those aimed at reducing fiscal risks from SOEs, could impact on the gradual reduction in Serbia's debt burden. Furthermore, Serbia's record of frequent elections, including snap parliamentary elections in 2014 and 2016, increases implementation risks, although Moody's considers it unlikely that the forthcoming presidential elections will significantly delay the reform agenda. Serbia's sizeable share of general government debt denominated in foreign currency poses a credit risk, particularly in the event of a sharp deterioration in the Serbian dinar, as does the high degree of euroisation in the banking sector. However, Moody's notes that the authorities have been able to increase the role of local currency in the economy through its dinarisation strategy.

In contrast, Serbia could benefit from continued institutional improvements as part of the EU accession process. Progress on EU accession, which has continued through successive governments, has allowed Serbia to formally open 8 chapters out of a total of 35 since the formal start of accession negotiations in January 2014. The experience of other Accession Countries suggests that continued adoption of EU reforms will yield a number of enhancements to the quality of Serbia's institutions, which has been recognized in improvements to Serbia's Worldwide Governance Indicators on government effectiveness, rule of law and control of corruption relative to 2013. Furthermore, the economic recovery and fiscal consolidation could continue to surprise to the upside, as stronger confidence reinforces the fiscal and economic improvements made in 2016, and increased interest from foreign investors helps to accelerate the privatisation process.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on Serbia's rating could arise if progress on structural reforms led to a notable improvement in the country's economic and fiscal metrics, resulting in a faster than expected reduction in the public debt burden closer to the median of similarly rated peers. Furthermore, structural reforms, including those to stimulate private investment through improvements in the business environment which in turn help to further boost potential growth in the economy, would be credit positive.

Conversely, downward pressure on Serbia's issuer rating could arise if a reduced commitment by policymakers to the reform agenda, particularly in relation to addressing budget risks from the SOE sector, leads to a markedly weaker growth outlook and a deterioration in fiscal metrics. Moreover, the emergence of structural imbalances in the form of a large and increasingly difficult-to-finance current account deficit could also trigger a rating downgrade.

GDP per capita (PPP basis, US$): 13,699 (2015 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 2.8% (2016 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.5% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -1.4% (2016 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -4% (2016 Actual) (also known as External Balance)

External debt/GDP: 78.4% (2015 Actual)

Level of economic development: Moderate level of economic resilience

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

On 14 March 2017, a rating committee was called to discuss the rating of the Government of Serbia. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's institutional strength/framework, have materially increased. The issuer's fiscal or financial strength, including its debt profile, has materially increased.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

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 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.

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.

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

Yves Lemay
MD - Sovereign Risk
Sovereign Risk 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

No Related Data.
© 2018 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. 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 SUCH 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 appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. 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. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

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 appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

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