Moody’s to Collaborate with Euler Hermes on Credit Ratings for European SMEs
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.
Moody’s Corporation
Media:
Salli Schwartz
Global Head of Investor Relations and Corporate Communications
+1 212.553.4862
sallilyn.schwartz@moodys.com
or
Julian Knapp
Assistant Vice President, Communications
+44 (020) 777-21967
Julian.knapp@moodys.com
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