Moody’s Acquires Full Ownership of Korea Investors Service (KIS)
July 18 2016 - 8:00PM
Business Wire
Moody’s Corporation (NYSE:MCO) announced today that it has
acquired full ownership of Korea Investors Service (KIS), a leading
provider of domestic credit ratings in Korea.
Founded in 1985, KIS serves the domestic capital markets in
Korea with credit ratings, research and other services. KIS has
been a majority-owned affiliate of Moody’s Investors Service since
2001.
“Moody’s and KIS have had a long-standing and productive
partnership, and this deal further solidifies our presence in this
important market,” said Robert Fauber, President of Moody’s
Investors Service.
KIS Ratings will continue to operate as an independent affiliate
of Moody’s Investors Service. Mr. Jae-Hong Lee, Chief Executive
Officer of KIS, will continue to lead the company.
“Over the past 15 years, KIS has benefited from the expertise
and global perspective provided by our affiliation with Moody’s,”
said Mr. Lee. “I look forward to further building the KIS business
and serving the Korean market with insightful credit ratings and
research.”
Under the terms of the deal, Moody’s will also gain a majority
ownership stake in KIS Pricing, a majority-owned subsidiary of KIS
and provider of pricing services and analytics for fixed income and
other local securities.
The terms of the deal were not disclosed. It is not expected to
have a significant impact on Moody’s earnings per share for 2016
and will be funded from international cash on hand.
ABOUT MOODY’S CORPORATION
Moody's is an essential component of the global capital
markets, providing credit ratings, research, tools and analysis
that contribute to transparent and integrated financial markets.
Moody’s Corporation (NYSE: MCO) is the parent company
of Moody's Investors Service, which provides credit ratings
and research covering debt instruments and securities, and Moody's
Analytics, which offers leading-edge software, advisory services
and research for credit and economic analysis and financial risk
management. The corporation, which reported revenue of $3.5
billion in 2015, employs approximately 10,800 people worldwide
and maintains a presence in 36 countries. Further information is
available at www.moodys.com.
“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Certain statements contained in this release
are forward-looking statements and are based on future
expectations, plans and prospects for Moody’s business and
operations that involve a number of risks and uncertainties. The
forward-looking statements in this release are made as of the date
hereof, and the Company disclaims any duty to supplement, update or
revise such statements on a going-forward basis, whether as a
result of subsequent developments, changed expectations or
otherwise. In connection with the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995, the Company is
identifying certain factors that could cause actual results to
differ, perhaps materially, from those indicated by these
forward-looking statements. Those factors, risks and uncertainties
include, but are not limited to, the current world-wide credit
market disruptions and economic slowdown, which is affecting and
could continue to affect the volume of debt and other securities
issued in domestic and/or global capital markets; other matters
that could affect the volume of debt and other securities issued in
domestic and/or global capital markets, including credit quality
concerns, changes in interest rates and other volatility in the
financial markets; the level of merger and acquisition activity in
the US and abroad; the uncertain effectiveness and possible
collateral consequences of US and foreign government initiatives to
respond to the current world-wide credit market disruptions and
economic slowdown; concerns in the marketplace affecting Moody’s
credibility or otherwise affecting market perceptions of the
integrity or utility of independent credit agency ratings; the
introduction of competing products or technologies by other
companies; pricing pressure from competitors and/or customers; the
level of success of new product development and global expansion;
the impact of regulation as an NRSRO, the potential for new US,
state and local legislation and regulations, including provisions
in the Financial Reform Act and regulations resulting from that
Act; the potential for increased competition and regulation in the
EU and other foreign jurisdictions; exposure to litigation related
to Moody’s rating opinions, as well as any other litigation,
government and regulatory proceedings, investigations and inquiries
to which the Company may be subject from time to time; provisions
in the Financial Reform Act legislation modifying the pleading
standards, and EU regulations modifying the liability standards,
applicable to credit rating agencies in a manner adverse to credit
rating agencies; provisions of EU regulations imposing additional
procedural and substantive requirements on the pricing of services;
the possible loss of key employees; failures or malfunctions of
Moody’s operations and infrastructure; any vulnerabilities to cyber
threats or other cybersecurity concerns; the outcome of any review
by controlling tax authorities of the Company’s global tax planning
initiatives; the outcome of those Legacy Tax Matters and legal
contingencies that relate to the Company, its predecessors and
their affiliated companies for which Moody’s has assumed portions
of the financial responsibility; exposure to potential criminal
sanctions or civil remedies if the Company fails to comply with
foreign and US laws and regulations that are applicable in the
jurisdictions in which the Company operates, including sanctions
laws, anti-corruption laws and local laws prohibiting corrupt
payments to government officials; the impact of mergers,
acquisitions or other business combinations and the ability of the
Company to successfully integrate acquired businesses; currency and
foreign exchange volatility; the level of future cash flows; the
levels of capital investments; and a decline in the demand for
credit risk management tools by financial institutions; and other
risk factors as discussed in the Company’s annual report on Form
10-K for the year ended December 31, 2015 and in other filings made
by the Company from time to time with the Securities and Exchange
Commission.
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Moody’s CorporationSalli Schwartz, +1-212-553-4862Global Head of
Investor Relations and
Communicationssallilyn.schwartz@moodys.comorHector Lim, +61 2 9270
8141Vice President, Communicationshector.lim@moodys.comorMichael
Adler, +1-212-553-4667Senior Vice President, Corporate
Communicationsmichael.adler@moodys.com
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