As I observed last year, our customers seek solutions to help them identify, measure and manage a wider range of interconnected risks. Prior to serving as CEO, Mr. Fauber served as Chief Operating Officer from November 2019 to December 2020, as President of Moodys Investors Service, Inc. from June 2016 to October 2019, as Senior Vice PresidentCorporate & Commercial Development of Moodys Corporation from April 2014 to May 2016, and was Head of the MIS Commercial Group from January 2013 to May 2016. (1), Coronavirus Effects Default Report. I am very proud that our expertise and focus on supporting credit markets was recognized by Institutional Investor as Best Credit Rating Agency for the tenth consecutive year.We also significantly expanded the ways we are helping markets better understand ESG issues, including the risks and opportunities around climate change. (2), Ireland CREDIT RATINGS, NON-CREDIT ASSESSMENTS (ASSESSMENTS), AND OTHER OPINIONS INCLUDED IN MOODYS PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. NOTE TO JOURNALISTS ONLY: For more information, please call one of visit our web site at www.moodys.com. (2), Jamaica (1), Kentucky MOODYS PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODYS ANALYTICS, INC. Mr. McDaniel currently is a director of John Wiley & Sons, Inc. (2005-present) and a member of the Board of Trustees of Muhlenberg College (2015-present).Mr. Source: S&P Global Market Intelligence, as of July 30, 2021. He is also a member of the Washington Economics Club.Mr. (2), Pakistan This includes our Business Resource Groups, which count more than half of our employees as members, and our work to empower our leaders, managers and individual employees in reinforcing an inclusive culture. She is a graduate of Emory University. (6), Syria (2), Guyana New York, January 07, 2013 -- Moody's Investors Service today announced that in mid-January 2013 it expects to introduce a new rating scale for probability of default ratings (PDR) in order to differentiate probability of default ratings from ratings that use Moody's global long-term scale. He is an actively involved diversity and inclusion leader and business partner, with a passion for creating a high performance and transparent culture, developing talent and fostering employee growth. Mr. Platt holds an M.B.A. from The University of Chicago, a B.A. Ms. Sullivan, a CPA, previously held various senior positions at several banks and a major accounting firm, and is a member of the Board of Directors of Financial Executives International. Previously, Mr. West served as Managing DirectorHead of Global Structured Finance from February 2014 to May 2016 and Managing DirectorHead of Global Corporate Finance from January 2010 to January 2014. (2), Congo, Republic of (ROC) He is responsible for all aspects of tax for Moodys and manages a global team of diverse professionals. Our commitment to environmental sustainability includes accelerating our net zero emissions target by ten years, from 2050 to 2040, consistently engaging in the ongoing global dialogue around ESG and climate disclosures, and executing on our public decarbonization plan.We are proud that our efforts led to recognition as a 2021 Global Compact LEAD company and an A List score from CDP, recognizing Moodys as one of a small number of high-performing companies that are leading actions to cut emissions, mitigate climate risks and develop the low-carbon economy. All rights reserved. The 2.1% fallen angel rate in 2020, although noticeably higher than the 1.1% rate in 2019, matched the long-term average since 1983. Loss given default (LGD) measures the expected loss, net of any recoveries, expressed as a percentage and will be unique to the industry or segment. Throughout 2021, the global pandemic continued to impact Moodys employees, customers, stockholders and communities. We achieved revenue growth of 16% and adjusted diluted EPS growth of 21%, our second consecutive year of over 20% growth amidst the pandemic.Moodys Investors Service (MIS) revenue grew 16% on the strength of buoyant issuance markets and our comprehensive coverage of global debt markets.Moodys Analytics (MA) revenue grew 16%, supported by 9% organic revenue growth, as well as several acquisitions. (9), Tajikistan (6), Cayman Islands - Off Shore Recipient email addresses will not be used in mailing lists or redistributed. (975), Financial Institutions Allows users to calculate the probability that any specific credit will cross a predefined threshold by a particular date. 15 Dec 2022. Chief Compliance OfficerHelene Gurian joined Moodys in 2010 and is the companys Chief Compliance Officer. (1), US Late Credit Cycle Risks KMV (currently part of Moody's Analytics) has developed hybrid approaches (Sobehart, J. R., et all, 2000), based on the market calibration of the key factor in the probability of default - Distance to Default7 , which is an index of both a single public company and the market as a whole or its segment. Moody's municipal ratings are opinions of the investment quality of the issues and issues in the US municipal and tax-exempt markets. Mr. McDaniel served as the Companys President from October 2004 until April 2005 and the Companys Chief Operating Officer from January 2004 until April 2005. (9), Iran (2), Uganda (6), Isle of Man (1), Wyoming Despite this challenge, Moodys again achieved considerable success, and I am impressed with the ways in which the Company has sustained and, in many areas, enhanced its contribution to financial market efficiency, transparency and fairness.As the pandemic has highlighted the demand for understanding of the complex and interconnected risks facing markets, businesses and economies, Moodys has stepped up to the challenge through its strategy of offering an integrated and holistic perspective on risk for customers.Important elements of this strategy in 2021 were the many investments made in new and evolving risk segments, including: cyber risk, Know Your Customer (KYC); Commercial Real Estate; Environmental, Social and Governance (ESG), and other high-growth adjacencies. (2), Ethiopia Van Saun currently serves as the chief executive officer and chairman of a U.S. bank. Announcement: Moody's appends Belk's Probability of Default rating of Ca-PD with LD designationGlobal Credit Research - 04 Feb 2021New York, February 04, 2021 -- Moody's Investors Service, ("Moody . Over the first half of 2021, Moody's repurchased 1.6 million shares at a total cost of $503 million, or an average cost of $318.03 per share, and issued net 0.7 million shares as part of its employee stock-based compensation programs. Earlier in his more than 30-year financial services career, he held senior positions with Deutsche Bank, Wasserstein Perella Group and Kidder Peabody & Co. Mr. Van Saun has served on a number of boards in both the U.S. and the U.K. Page 1 of 11 INTRODUCTION According to the United Nations Inter-Governmental Panel on Climate Change (IPCC), human-induced . (1), Tennessee TABLE OF CONTENTS INTRODUCTION 1 GOVERNANCE 2 STRATEGY 3 RISKS ASSOCIATED TO CLIMATE CHANGE 3 . Moodys Analytics offers a modular, flexible, and comprehensive IFRS 9 impairment solution that facilitates banks efforts to calculate and manage capital set asides for these provisions. (2), Kenya (7), Economic and Monetary Community of Central Africa (CEMAC) (2), Chile You can also email us at [emailprotected] or She served as a Public Governor of the Financial Industry Regulatory Authority (FINRA). The maximum number of items you can export is 3,000. (5), Growth: Macroeconomic outlook & insights on fiscal and monetary policies (1), New York The Company is proud to have met its Supplier Diversity Initiative pledge to increase the representation of women-owned businesses in its supply chain, and of the commitment made in 2021 to materially increase the population of women, and U.S. Black and Hispanic / Latino leaders across the company by 2025. (6), Burkina Faso (2), SMEs and Mid-caps: A Focus on Funding (2), Georgia (2), Brunei Darussalam This severity level is estimated to increase short term, average state-level default rates from 0.07% to between 11.6% and 18.4%, with a conservative estimate of 13.8%. our global press information hotlines: New York +1-212-553-0376, Moody's Investors Service provides investors with a comprehensive view of global debt markets through credit ratings and research. (2), Chad Breed is responsible for all global enterprise technology programs and activities. (6), Portugal Revised Senior Ratings Algorithm2015 Oil BustDefinition of Default and Rating SymbolsTrading Prices vs. (Hons) in Russian and European Studies from the University of Surrey and speaks fluent Russian. reference to Moody's idealized loss and default tables (see Appendix B). Please reduce your list by using the filtering tool to the left. Sullivan has served as the Companys Senior Vice PresidentCorporate Controller since December 2018. In 2020, only 2.1% of investment-grade companies fell to speculative grade despite an extremely difficult business environment. (9), Togo He is the chairman of the Board of Trustees of The Valley Health System and a member of the Board of Directors of the Quest Autism Foundation. (270), Uruguay (2), Malta He served as the Executive Group President, Group Leader, Civil and Commercial Group, from 2013 to 2016, as Executive Vice President, Client Services Officer, from 2009 to 2013, and as Vice President, Strategy and Organization, from 2000 to 2009. Already a Client? (10), Gulf Cooperation Council That rate, if realized, would exceed the historical average. (2), Bolivia Mr. Kenney has over twenty-five years of experience in internal audit, risk management, business process and internal controls. (6), Ecuador 19 Oct 2022 | Moody's Investors Service The speculative-grade corporate default rate will climb to 4.3% next year under our baseline forecast, up from 2.3% in September. (6), Rwanda Head of Investor RelationsShivani Kak heads the Investor Relations Team and is responsible for managing effective communications with the analytical community, as well as existing and potential shareholders. He served as a director of Citibank N.A. "As central banks and governments responded rapidly with significant fiscal and monetary measures to mitigate the impact of the crisis, the pace of defaults also began to slow. (2), Luxembourg As a result of holding these positions, Mr. Van Saun brings financial expertise, management experience and experience managing a business in a highly regulated industry both in the U.S. and in Europe. (2), Saint Kitts and Nevis The LGD of the obligor's exposures in the cell equals 1.0 minus the average of such prices expressed as a fraction of par; there is exactly one LGD for each default. Executive Vice President & General CounselJohn Goggins is Executive Vice President and General Counsel of Moodys Corporation. (2), Thailand Sector in-depth Refinancing risk rises for US companies as maturities peak, interest rates increase, economy weakens Mr. Kenney also oversees risk assurance for the Corporation. . in Communications and Political Science from the University of Michigan. (2), Cuba She also serves as the Senior Independent Director at National Grid plc (March 2014-present).Ms Esperdys extensive experience in global investment banking and financial markets provides her with strategic and financial expertise that is critical to overseeing the Companys strategies. In this role, Ms. Kazanjian is primarily responsible for setting and overseeing the execution of the Company's strategy to attract, grow, and retain extraordinary talent in service of our business. (6), Denmark Dial the AT&T Direct Dial Access code for. (1), Missouri (18), Colombia Mr. Goggins joined the firm in 1999 as Vice President and Associate General Counsel. London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong The rating scale used by Moody's is: Rating Scale of Moody . from The University of California, Berkeley in Political Economies of Industrialized Societies and earned the Chartered Financial Analyst designation. (1434), Latin America & Caribbean (1), Arizona Shivani holds an MBA from the Johnson School at Cornell University and a B.Sc. (2), European Union Granularity: Contains granular information from our sister company, Moody'sInvestors Service, includingcomplete rating history at the instrument level, rating outlook and watch-list data, and credit enhancement/backing data, indicating external support. 001-888-779-5833, So Paulo 0800-891-2518, or Buenos Aires Performance reflects expense reimbursements and/or fee waivers made in 2016, 2019, 2020, 2021 and 2022. From 1987 to 1996, Ms Seidman served as Vice President, Accounting Policy and in other roles at J.P. Morgan & Company, Inc. (now JPMorgan Chase) and from 1984 to 1987, Ms Seidman served as an auditor for Arthur Young & Co. (now EY). She joined Moodys in 2018 after nearly 30 years of diverse experience across all dimensions of technology, finance and large-scale project management/system implementation. Chief Executive OfficerQualtrics International Inc.Director since July 2021 Zig Serafin, age 48, was appointed a member of the Audit, Governance & Nominating and Compensation & Human Resources Committees of the Board of Directors, effective July 14, 2021. (2), Canada (6), Netherlands Antilles I would like to acknowledge the many contributions of my fellow board members, and welcome Zig Serafin, CEO of Qualtrics, to the Moodys board. (2), South Africa He served as Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008. (1), Oklahoma (2), Tanzania, United Republic of Moody's municipal ratings are opinions of the investment quality of the issues and issues in the US municipal and tax-exempt markets. Mark came to Moodys from Massachusetts Mutual Life Insurance Company (MassMutual), where he served as Chief Financial Officer of MassMutual U.S. Senior Vice President,Risk Management & Chief Audit ExecutiveScott Kenney is Senior Vice President Risk Management and Chief Audit Executive of Moodys Corporation. Our platform combines the Moody's Analytics Expected Default Frequency (EDF) model, which measures the probability that a firm will default in the next 12 months, with cutting-edge analytics to deliver tools that can provide early warning on your exposures. (6), Hong Kong SAR, China (2), Trinidad & Tobago Looking back on my first year as CEO, I am enormously proud of the tremendous dedication and resilience of our employees as we delivered for our stakeholders through yet another year of the pandemic. (2), Mauritania (1), Connecticut (2), Fiji 12/31/2021: 21.08: 28.68: 11/30/2022: 3.52-13.12: 12/31/2022-.51-18.13: Mr. Kapusta holds a Masters Degree (LL.M.) This translated into strong financial performance and returns for our stockholders. Mr. Goggins holds a J.D. 0800-666-3506. Mr. Forlenza served as BDs Chief Executive Officer from 2011 to January 2020 and President from 2009 to April 2017. He additionally brings experience in areas such as strategic planning, business development and new product development. Default Risk Service Structured Finance. In the expanding area of sustainability, COP26 highlighted the importance of stakeholder requests for transparent corporate disclosures that capture both the short- and long-term impacts of physical risk and energy transition risk across industries and business operations. Data for separately estimating the probability of default, loss given default, and overall expected loss, More than 800,000 individual debt securities. MOODYS CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. Firstly, as seen in Panel A of Figure 1.3, the credit quality of Swedish bond issuances has been decreasing, both since 2000 but more notably since 2009 when the market began growing substantially.For bonds issued in 2021, the average value-weighted rating was just slightly above BBB-, the lowest . And, as our customers increasingly seek to understand and quantify the risk of a cyber attack in their organizations and across their supply chains, we made a $250 million investment in BitSight, a leading provider of cyber security risk ratings.All of these initiatives translated into impressive financial performance and continued strong returns for our stockholders. Moodys Analytics helps financial institutions develop collaborative, auditable, repeatable, and transparent stress testing programs to meet regulatory demands. (2), Brazil (2), New Caledonia This increases for the lowest investment grade credit rating 'BBB-' to 2.84%. (1), Rhode Island Moodys continues to garner recognition for its diversity, equity and inclusion achievements, including from the Human Rights Campaign Foundation, Bloomberg Gender Equality Index and Working Mother. Over the course of the year, we have executed on those priorities, investing in capabilities to better serve a broader range of customers and accelerating our ambition to be the leading global provider of integrated perspectives on risk. (2), Botswana (1), West Virginia (2), Saudi Arabia default status of sele cted textile firm s is sourced fro m the audited an nual reports of selected textile firms fo r 15 years from 1 April 2004 to 31 st March 2019. Default Trends and Rating Transitions | Moody's Default Trends and Rating Transitions This page provides a central resource for Moody's research on default risks, impairment and loss rates, rating transitions and performance, and liquidity studies. Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. He holds an undergraduate degree in Economics and Business Administration from the University of Notre Dame and an MBA in Finance, Marketing and International Business from the Stern School of Business at New York University. (2), Angola Default Report. (1), Georgia (160), Recovery Studies Weekly Market Outlook Markets, Bankers and Analysts Differ on 2021's . (6), Djibouti (1), Florida (2), Bankruptcy, Troubled Credits & Turnarounds (2), Romania Calculates the expected distribution of portfolio or tranche losses as a result of either default or rating transitions. 2023 Moody's Investors Service, Inc., Moodys Analytics, Inc. and/or their affiliates and licensors. All rights reserved. Her various executive roles at Cisco Systems, Inc. allow her to bring extensive leadership experience and a strong background in information technology and business operations to the Board. (2), Singapore (6), Qatar (1), New Hampshire (2), Italy Global corporate default rate will climb as macroeconomic and credit conditions worsen, Global corporate default rate will nearly double in a year. (2), Lesotho in Tax from New York University School of Law and a J.D. She also held various leadership positions across the organization including roles in Business Process Management and Ratings Operations, Investor Relations, Structured Finance Surveillance, Public Finance, Business Planning and Revenue Accounting. (1), Illinois