FINANCIAL INSTITUTIONS CREDIT OPINION 27 June 2019 Update RATINGS FCA Bank S.p.A. Domicile Italy Long Term CRR Baa1 Type LT Counterparty Risk Rating - Fgn Curr Outlook Not Assigned Long Term Debt Not Assigned Long Term Deposit Baa1 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Guy Combot +33.1.5330.5981 VP-Senior Analyst [email protected]Raffaele Del Cimmuto +33.1.5330.3360 Associate Analyst [email protected]Alain Laurin +33.1.5330.1059 Associate Managing Director [email protected]Nick Hill +33.1.5330.1029 MD-Banking [email protected]FCA Bank S.p.A. Update to credit analysis Summary The Baa1 long-term deposit and issuer ratings of FCA Bank S.p.A. (FCA Bank), a joint venture between car manufacturer Fiat Chrysler Automobiles N.V. (FCA, Ba1 corporate family rating (CFR), stable outlook) and Groupe Credit Agricole , reflect (1) the bank’s BCA of ba1 mainly driven by sound solvency profile and commercial dependence on FCA; (2) a high probability of affiliate support from Credit Agricole S.A. (Credit Agricole, A1/A1 positive, adjusted BCA baa1), driving a one-notch uplift to its adjusted BCA of baa3; (3) extremely low and very low loss-given-failure, which results in three and two notches of uplift for deposit and long- term issuer ratings, respectively; (4) low probability of government support, which does not result in any uplift; and (5) Italy 's Baa3 sovereign debt rating, which constraints FCA Bank's long-term deposit rating at Baa1. In accordance with our methodology, bank ratings do not typically exceed the related sovereign bond rating by more than two notches, reflecting our view that the expected loss of rated bank instruments is unlikely to be significantly lower than that of the sovereign’s own debt. The Baa1 long-term deposit and issuer ratings have a stable outlook, reflecting the constraint arising from Italy's Baa3 sovereign debt rating. Exhibit 1 Rating Scorecard - Key financial ratios 1.4% 12.0% 1.3% 79.6% 8.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 2% 4% 6% 8% 10% 12% 14% 16% Asset Risk: Problem Loans/ Gross Loans Capital: Tangible Common Equity/Risk-Weighted Assets Profitability: Net Income/ Tangible Assets Funding Structure: Market Funds/ Tangible Banking Assets Liquid Resources: Liquid Banking Assets/Tangible Banking Assets Solvency Factors (LHS) Liquidity Factors (RHS) FCA Bank (BCA: ba1) Median ba1-rated banks Solvency Factors Liquidity Factors Source: Moody's Financial Metrics
Transcript
FINANCIAL INSTITUTIONS
CREDIT OPINION27 June 2019
Update
RATINGS
FCA Bank S.p.A.Domicile Italy
Long Term CRR Baa1
Type LT Counterparty RiskRating - Fgn Curr
Outlook Not Assigned
Long Term Debt Not Assigned
Long Term Deposit Baa1
Type LT Bank Deposits - FgnCurr
Outlook Stable
Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.
SummaryThe Baa1 long-term deposit and issuer ratings of FCA Bank S.p.A. (FCA Bank), a joint venturebetween car manufacturer Fiat Chrysler Automobiles N.V. (FCA, Ba1 corporate family rating(CFR), stable outlook) and Groupe Credit Agricole, reflect (1) the bank’s BCA of ba1 mainlydriven by sound solvency profile and commercial dependence on FCA; (2) a high probabilityof affiliate support from Credit Agricole S.A. (Credit Agricole, A1/A1 positive, adjusted BCAbaa1), driving a one-notch uplift to its adjusted BCA of baa3; (3) extremely low and verylow loss-given-failure, which results in three and two notches of uplift for deposit and long-term issuer ratings, respectively; (4) low probability of government support, which does notresult in any uplift; and (5) Italy's Baa3 sovereign debt rating, which constraints FCA Bank'slong-term deposit rating at Baa1. In accordance with our methodology, bank ratings do nottypically exceed the related sovereign bond rating by more than two notches, reflecting ourview that the expected loss of rated bank instruments is unlikely to be significantly lowerthan that of the sovereign’s own debt.
The Baa1 long-term deposit and issuer ratings have a stable outlook, reflecting the constraintarising from Italy's Baa3 sovereign debt rating.
» Monoline business model and commercial dependence on FCA
» Wholesale funding profile mitigated by Credit Agricole's support
Rating outlookFCA Bank’s Baa1 long-term deposit and issuer ratings have a stable outlook, reflecting the constraint arising from Italy's Baa3 sovereigndebt rating. In accordance with our Banks methodology, bank ratings do not typically exceed the related sovereign bond rating by morethan two notches, reflecting our view that the expected loss of rated bank instruments is unlikely to be significantly lower than that ofthe sovereign’s own debt.
Factors that could lead to an upgradeThe baa3 adjusted BCA could be upgraded if we were to consider a higher probability of support from Credit Agricole or an upgrade ofCredit Agricole's adjusted BCA.
FCA Bank's Baa1 deposit and issuer ratings are constrained at two notches above Italy's sovereign bond rating and therefore an upgradeis unlikely.
Factors that could lead to a downgradeFCA Bank’s standalone BCA could be downgraded as a result of a deterioration in FCA's creditworthiness or a deterioration in FCABank's capital and profitability.
The adjusted BCA could be downgraded following a downgrade of the standalone BCA or reduced support from Credit Agricole.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.
2 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
Gross Loans / Due to Customers (%) 1309.1 1450.7 2684.7 3467.3 8235.0 3429.46
[1]All figures and ratios are adjusted using Moody's standard adjustments. [2]Basel III - fully-loaded or transitional phase-in; IFRS. [3]Basel II; IFRS. [4]May include rounding differences dueto scale of reported amounts. [5]Compound Annual Growth Rate (%) based on time period presented for the latest accounting regime. [6]Simple average of periods presented for the latestaccounting regime. [7]Simple average of Basel III periods presented.Source: Moody's Investors Service; Company Filings
ProfileFCA Bank is a captive finance company that supports vehicle sales in select European countries by its manufacturer shareholder FCAand also by non-FCA brands such as Ferrari, Jaguar, Land Rover, Erwin Hymer, Morgan and Aston Martin. Furthermore, during 2018 FCABank ventured into the motorcycle sector through agreements with Harley Davidson and MV Agusta.
The bank operates in 17 European countries and Morocco, either directly or through branches and subsidiaries, and provides servicesmainly through the dealership networks of the respective manufacturers.
The company is a 50:50 joint venture between Credit Agricole Consumer Finance SA, a subsidiary of Credit Agricole, and FCA ItalyS.p.A., a subsidiary of FCA. For more information, please see FCA Bank's Company Profile.
Detailed credit considerationsFCA Bank’s BCA is supported by its Macro Profile of StrongAlthough FCA Bank is domiciled in Italy, its operations are diversified across Europe, and its financial profile benefits from operating incountries with a weighted-average Macro Profile of Strong. In 2018, most of FCA Bank's outstanding business (retail, dealer, long-termrental) was in Italy (48% of total loans), followed by Germany (17%), the UK (8%), France (8%) and Spain (5%).
Low stock of problem loansFCA Bank’s asset risk is low, as indicated by our a3 score, one notch below the macro-adjusted score of a2 to incorporate concentrationrisk in the automotive business.
Cars are of critical importance to most consumers, who usually repay their car loans with priority over other debts; this results in arelatively low level of problem loans1. FCA Bank disclosed a low stock of problem loans, at 1.2% of gross loans in December 2018, whichcompared favorably with an average of 3.2% for European banks, according to data published by the European Banking Authority(EBA)2 and with the Italian system average of 12.5% as of June 2018 (lastest available data)3.
The provisioning coverage as of year-end 2018 was 100%, up from 93% as of the end of June 2018.
3 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
Sound capital and good profitabilityWe view FCA Bank’s tangible common equity (CET1) / risk-weighted assets (RWA) capital ratio of 12.5% in December 2018 as soundrelative to the bank's low asset risk. Our score for FCA Bank's Capital is baa2, one notch above the macro-adjusted score.
Contrary to its peers, FCA Bank computes its RWA using the standardized approach (SA), limiting comparability. That said the riskweights applied under the SA are likely to be higher than under models. We do not expect the bank to adopt advanced credit riskmodels in the foreseeable future.
The bank’s profitability is good and in line with that of its main peers (Exhibit 3). Our score for FCA Bank's Profitability is a3, in line withthe macro-adjusted score. In December 2018, the bank's return on tangible assets was 1.3%.
Exhibit 3
A good profitability
1.0%1.1%
0.8%0.7%
0.9% 0.9%
0.7%0.8%
1.9%1.8%
1.7%
1.4%
1.6%1.5%
1.5%
1.7%
0.9%
1.1% 1.1%1.2%
1.3%1.4%
1.4%
1.3%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2011 2012 2013 2014 2015 2016 2017 2018
Volkswagen Bank GmbH (baa2) RCI Banque (baa3) FCA Bank S.p.A. (ba1)
Source: Moody's Investors Services
FCA Bank's net profit has consistently grown since 2007 and throughout the years of recession, with the exception of 2009 because ofa one-off credit loss in Spain. We believe this trend will continue given our expectation of economic growth in Europe in 2019, positivetrends in FCA industry and increasing commercial penetration of FCA in most of its markets.
In 2018, pre-tax income from Italy was around 51% of the group total, with the remainder coming from the other European biggestcontributors namely Germany, the UK and Spain, with around 14%, 13% and 8% respectively.
FCA Bank was fined by Italy's competition authority, Autorità Garante della Concorrenza e de Mercato (AGCM) on 9 January 2019along with eight other auto captives for exchanges of commercial information on the main characteristics of their loans between 2003and 20174. The fine imposed to FCA Bank was €179 million. Nevertheless, the bank posted a full-year net income of €388 million, inline with 2017 (€383 million), notwithstanding a provision, amounting to €60 million against the related risks.
FCA Bank appealed the AGCM's decision in March 2019, but the legal proceedings will likely take more than two years to conclude. On4th April 2019 the Regional Administrative Court of Rome (Lazio), considering the need to investigate a complex case, ruled in favorof the suspension of the payment. Court hearing is scheduled for 26 February 2020. Pursuant to the ruling, FCA Bank provided AGCMwith a bank guarantee for an amount equal to the sanction, which will be retained by AGCM until final decision is taken. We assumethe fine to be manageable for FCA Bank.
Wholesale funding profile, with matching maturitiesFCA Bank is dependent on inherently credit-sensitive market funding; we consider its Funding Structure a weakness and assign a scoreof caa1. Dependence on market funding may cause some difficulties in a volatile environment such as Italy, as seen in 2018.
Our assigned score is two notches above the caa3 macro-adjusted score. The adjustment takes into account our view that a materialamount of funding is stable because it comes from FCA's shareholder Credit Agricole (11% of the total indebtedness) and also becausethe maturities of FCA Bank's senior debt match the relatively short-term duration of assets.
4 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS
FCA Bank's funding sources are also well diversified (Exhibit 4).
Exhibit 4
Diversified funding profile as of December 2018
Funding from CASA 10%
Interbank funding excl CASA 22%
Wholesale unsecured bonds 30%
Deposits 3%
ECB 4%
Securitisation 20%
Commercial Paper 1%
Equity10%
Source: Company's presentation, Moody's Investors Service
The bank has been able to tap the wholesale markets under its own name several times over the last few years.
FCA Bank has limited liquid assets, which represented 8.4% of its tangible assets in December 2018. This indicates a score for LiquidResources of ba3; our assigned score is ba2, one notch above the macro-adjusted score, to reflect access to additional funds thatcould be provided by Credit Agricole in case of need. This also reflects the fact that FCA fund its loan portfolio with matched fundedresources.
Qualitative adjustments and affiliate constraintsFCA bank’s creditworthiness is constrained by its monoline status and lack of business diversification, which is reflected in a one-notchnegative adjustment to its financial profile of baa3.
Support and structural considerationsAffiliate supportOur view that there is a high probability that Credit Agricole would extend extraordinary support to FCA Bank in case of need drives aone-notch uplift from the bank's ba1 BCA to an Adjusted BCA of baa3. This expectation is based on the fact that FCA Bank is a strategicsubsidiary for Credit Agricole's European consumer finance business; furthermore, this status is underpinned by the joint ventureagreement that was recently extended until December 2022.
Credit Agricole's ratings have a positive outlook. An upgrade of Credit Agricole's adjusted BCA would indicate increased capacity tosupport its subsidiaries, including FCA Bank. This could result in an upgrade of FCA Bank’s baa3 adjusted BCA.
Loss Given Failure (LGF) analysisFCA Bank is subject to the EU Bank Recovery and Resolution Directive (BRRD), which we consider an operational resolution regime.Our analysis assumes residual tangible common equity of 3% and losses post-failure of 8% of tangible banking assets, a 25% run-offin “junior” wholesale deposits, a 5% run-off in preferred deposits and 26% junior deposits over total deposits. These are in line withour standard assumptions. Furthermore, we take into account the full depositor preference whereby junior deposits are preferred oversenior debt creditors in accordance with a law decree introducing full depositor preference in Italy starting from 2019.
In addition, we believe that in a resolution scenario, losses imposed on creditors will typically depend on a country-based division ofassets and liabilities, and not necessarily on those of the consolidated group. In our Advanced Loss Given Failure (LGF) analysis, weconsider FCA Bank's unconsolidated Italian balance sheet with tangible banking assets of €19 billion.
5 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS
In determining the stock of bail-in-able debt in a resolution scenario, we consider all bonds issued by FCA Bank and its foreign branches(for example, FCA Bank S.p.A., Irish branch), and by all funding vehicles outside of Italy that issue instruments guaranteed by FCA Banksuch as FCA Capital Suisse SA. We also consider the deposits that are from Italy (€1.1 billion5).
We believe that FCA Bank's deposits are likely to face very low loss-given-failure because of the loss absorption provided by the residualequity that we expect in resolution (3%) and senior unsecured debt, as well as the volume of junior deposits. This is supported by thecombination of deposit volume and subordination.
This results in an uplift of three notches from the bank’s baa3 Adjusted BCA; we however constrain the uplift to two notches aboveItaly's Baa3 sovereign debt rating as per Moody's banks methodology.
We believe that FCA Bank's long-term issuer rating is likely to face very low loss-given-failure, due to the loss absorption providedby the residual equity that we expect in resolution, as well as the volume of senior unsecured debt itself. This is supported by thecombination of senior unsecured debt volume and subordination. This results in an uplift of two notches from the bank’s baa3 adjustedBCA.
Government support considerationsThere is no uplift given our view of a low probability of government support for this entity, which is not considered as systemic.
Counterparty Risk (CR) AssessmentCR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt anddeposit ratings in that they (1) consider only the risk of default rather than both the likelihood of default and the expected financial losssuffered in the event of default and (2) apply to counterparty obligations and contractual commitments rather than debt or depositinstruments. The CR assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performanceobligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.
FCA Bank's CR Assessment is positioned at Baa2(cr)/Prime-2(cr)The long-term CR Assessment is positioned one notch above the adjusted BCA of baa3, and it is also capped at one notch above Italy'sBaa3 sovereign debt rating. According to our methodology, CR Assessments do not typically exceed by more than one notch the ratingof the sovereign in which the bank is domiciled, reflecting our view that the probability of default of counterparty obligations is unlikelyto be significantly below that of the sovereign’s own debt.
The main difference with our Advanced LGF approach used to determine instrument ratings is that the CR Assessment captures theprobability of default on certain senior obligations, rather than expected loss, therefore we focus purely on subordination and take noaccount of the volume of the instrument class.
Counterparty Risk Rating (CRRs)CRRs are opinions on the ability of entities to honour the uncollateralised portion of non-debt counterparty financial liabilities (CRRliabilities) and also reflect the expected financial losses in the event that such liabilities are not honoured. CRR liabilities typicallyrelate to transactions with unrelated parties. Examples of CRR liabilities include the uncollateralised portion of payables arising fromderivative transactions and the uncollateralised portion of liabilities under sale and repurchase agreements. CRRs are not applicable tofunding commitments or other obligations associated with covered bonds, letters of credit, guarantees, servicer and trustee obligations,and other similar obligations that arise from a bank performing its essential operating functions.
FCA Bank's CRRs are positioned at Baa1/Prime-2The long-term CRR is two notches above the bank's adjusted BCA of baa3, reflecting the more limited benefit of debt instrumentslikely to absorb losses before such counterparty obligations under a scenario of sovereign default. FCA Bank's CRR is also capped at twonotches above Italy's Baa3 sovereign debt rating reflecting our view that expected loss is likely to be higher under a sovereign default.
About Moody's Bank ScorecardOur scorecard is designed to capture, express and explain in summary form our Rating Committee's judgement. When read inconjunction with our research, a fulsome presentation of our judgement is expressed. As a result, the output of our scorecardmay materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strong
6 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
divergence). The scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down toreflect conditions specific to each rated entity.
7 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS
Rating methodology and scorecard factors
Exhibit 5
FCA Bank S.p.A.Macro FactorsWeighted Macro Profile Strong - 100%
Bkd Senior Unsecured Baa1FCA BANK S.P.A., IRISH BRANCH
Outlook StableCounterparty Risk Rating Baa1/P-2Counterparty Risk Assessment Baa2(cr)/P-2(cr)Senior Unsecured -Dom Curr Baa1Commercial Paper P-2
FCA CAPITAL SUISSE SA
Outlook StableBkd Senior Unsecured -Dom Curr Baa1
Source: Moody's Investors Service
Endnotes1 We consider as “problem loans” the sum of the three categories that Italian banks have been reporting since 2015 (from most to least problematic): (1)
bad loans (in Italian, “sofferenze”): loans to insolvent borrowers; (2) unlikely to pay (in Italian, “inadempienze probabili”); and (3) past due - by more than90 days not already included in the previous two categories (in Italian, “esposizioni scadute e/o sconfinanti”).
2 European Banking Authority, Risk Dashboard data as of Q4 2018.
3 Source: Bank of Italy, Financial Stability Report.
4 See Moody's Sector Comment “Italy fines nine financial captives of Europe's largest carmakers, a credit negative”.
5 FCA Bank's unconsolidated balance sheet as of December 2018.
9 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDITRISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THERELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITYMAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEEMOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’SRATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDITRATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAYALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDITRATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONSARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONSCOMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONSWITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDERCONSIDERATION 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 FORRETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACTYOUR 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, REDISTRIBUTEDOR 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 ANYPERSON 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 PURPOSESAND 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 wellas 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 ituses 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 anyindirect, 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 anysuch 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 ordamages, 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 aparticular 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 compensatorylosses 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 theavoidance 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 CREDITRATING 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 (includingcorporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating,agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintainpolicies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO andrated 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 atwww.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 InvestorsService 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 intendedto 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, yourepresent 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 orindirectly 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 tothe 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’sOverseas 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 NationallyRecognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity 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 registeredwith 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 preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it feesranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
REPORT NUMBER 1181614
10 27 June 2019 FCA Bank S.p.A.: Update to credit analysis
