Moody’s to Collaborate with Euler Hermes on Credit Ratings for European SMEs
September 28 2016 - 2:50AM
Business Wire
Moody’s Corporation (MCO) today announced a collaboration with
Euler Hermes Rating GmbH (EHRG), a Hamburg-based ratings agency, to
provide credit ratings for small- and medium-sized enterprises
(SMEs) and mid-cap companies across Europe. EHRG is a subsidiary of
Euler Hermes (ELE:PA), the world leader in trade credit
insurance.
Euler Hermes Rating, through its collaboration with Moody’s,
will launch new credit ratings services for SMEs and mid-cap
companies in select European countries by leveraging Moody’s
Investors Service’s credit ratings methodology expertise and
drawing upon the Euler Hermes group’s extensive experience
analyzing the trade credit of European companies. The new rating
product will be launched in Germany in early 2017, followed by
other European countries later in the year.
“We welcome the opportunity to work with Euler Hermes Rating as
they extend credit ratings to small and medium-sized enterprises
throughout Europe,” said Jens Schmidt-Buergel, Country Manager for
Moody’s Investors Service in Germany. “Expanding credit ratings
coverage for SMEs can provide greater transparency for market
participants and help this vital sector of the European economy
attract growth capital.”
As part of the collaboration, Moody’s has agreed to acquire a
4.99% stake in EHRG. The terms of the transaction were not
disclosed. The investment was funded through international cash on
hand and is not material to Moody’s earnings.
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 regulation, credit quality concerns, changes in interest
rates and other volatility in the financial markets such as that
due to the UK’s referendum vote whereby the UK citizens
voted to withdraw from the EU; the level of merger and acquisition
activity in the U.S. and abroad; the uncertain effectiveness and
possible collateral consequences of U.S. and foreign government
initiatives to respond to the current world-wide credit market
disruptions and economic slowdown; concerns in the marketplace
affecting our 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 U.S.,
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 our rating opinions, as well as any other litigation, government
and regulatory proceedings, investigations and inquires 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 our
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; exposure to potential criminal sanctions or civil
remedies if the Company fails to comply with foreign and U.S. 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. These factors, risks and
uncertainties as well as other risks and uncertainties that could
cause Moody’s actual results to differ materially from those
contemplated, expressed, projected, anticipated or implied in the
forward-looking statements are described in greater detail under
“Risk Factors” in Part I, Item 1A of 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 SEC or in materials incorporated herein or therein.
Stockholders and investors are cautioned that the occurrence of any
of these factors, risks and uncertainties may cause the Company’s
actual results to differ materially from those contemplated,
expressed, projected, anticipated or implied in the forward-looking
statements, which could have a material and adverse effect on the
Company’s business, results of operations and financial condition.
New factors may emerge from time to time, and it is not possible
for the Company to predict new factors, nor can the Company assess
the potential effect of any new factors on it.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160927006664/en/
Moody’s CorporationMedia:Salli SchwartzGlobal Head of Investor
Relations and Corporate Communications+1
212.553.4862sallilyn.schwartz@moodys.comorJulian KnappAssistant
Vice President, Communications+44 (020)
777-21967Julian.knapp@moodys.com
Moodys (NYSE:MCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Moodys (NYSE:MCO)
Historical Stock Chart
From Apr 2023 to Apr 2024