JANUARY 7, 2022
RESEARCH ON CAPITAL MARKETS
Moody’s Analytics markets and distributes all Moody’s Capital Markets Research documents. Moody’s Analytics does not provide investment advisory services or products.
Interest rates on operating leases and pensions
Interest rates on operating leases and repurchase agreements used in standard adjustments
– Report date: December 31, 2021
Median yields of regular coupon bonds (no zero coupon or variable rate) rated by Moody’s with maturities
between six and eight years old and outstanding values ââof over $ 50 million. Each observation is unweighted
in the sample, and returns are calculated for month-end values.
RESEARCH ON CAPITAL MARKETS
JANUARY 7, 2022
CAPITAL MARKET RESEARCH / MARKET OUTLOOK / MOODYS.COM
Â© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and / or their licensors and affiliates (collectively, âMOODY’Sâ). All rights reserved.
THE CREDIT RATINGS ISSUED BY THE AFFILIATES OF MOODY’S CREDIT NOTATIONS ARE THEIR CURRENT OPINIONS ON THE FUTURE CREDIT RISK OF THE ENTITIES, THE CREDIT COMMITMENTS OR THE DEBT
WHERE DEBT SECURITIES, AND MATERIAL, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, âPUBLICATIONSâ) MAY INCLUDE THIS CURRENT
OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK OF AN ENTITY FAILURE TO MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AT THEIR MATURITY AND ANY ESTIMATES
FINANCIAL LOSS IN CASE OF DEFAULT OR DEPRECIATION. SEE APPLICABLE PUBLICATION OF MOODY’S NOTATION SYMBOLS AND DEFINITIONS FOR INFORMATION ON TYPES OF
CONTRACTUAL FINANCIAL OBLIGATIONS COVERED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT RESPOND TO ANY OTHER RISK, INCLUDING, BUT NOT LIMITED TO:
LIQUIDITY RISK, MARKET VALUE RISK OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT RATINGS (âRATINGSâ) AND OTHER OPINIONS INCLUDED IN MOODY’S
PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE ESTIMATES OF CREDIT RISK AND
RELATED OPINIONS OR COMMENTS PUBLISHED BY MOODY’S ANALYTICS, INC. AND / OR ITS SUBSIDIARIES. CREDIT RATINGS, APPRAISALS, OTHER OPINIONS AND
THE PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE ANY INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, VALUATIONS, OTHER OPINIONS AND PUBLICATIONS ARE
DO NOT PROVIDE OR MAKE RECOMMENDATIONS FOR THE PURCHASE, SALE OR HOLDING OF SPECIAL SECURITIES. CREDIT RATINGS, APPRAISALS, OTHER OPINIONS AND
THE PUBLICATIONS DO NOT COMMENT ON THE RELEVANCE OF AN INVESTMENT TO A PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, APPRAISALS AND OTHERS
NOTICE AND PUBLISH ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WOULD CAREFULLY CARRY OUT HIS OWN STUDY AND EVALUATION
OF EVERY SECURITY CONSIDERED FOR PURCHASE, HOLD OR SALE.
MOODY’S CREDIT RATINGS, APPRAISALS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND WILL BE
INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, APPRAISALS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING INVESTMENT DECISIONS. IF IN
DOUBT YOU SHOULD CONTACT YOUR FINANCIAL ADVISOR OR OTHER PROFESSIONAL ADVISOR.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING, BUT NOT LIMITED TO, COPYRIGHT LAW, AND NO SUCH INFORMATION MAY BE COPIED OR
OTHERWISE REPRODUCED, RECONDITIONED, TRANSMITTED, TRANSFERRED, DISTRIBUTED, REDISTRIBUTED OR RESELLED, OR STORED FOR FUTURE USE FOR ANY SUCH
PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A REFERENCE BECAUSE THIS TERM IS DEFINED FOR
REGULATORY OBJECTIVES AND MUST NOT BE USED IN A WAY THAT COULD BE CONSIDERED AS A REFERENCE.
All the information contained in this document has been obtained by MOODY’S from sources it considers accurate and reliable. Due to the possibility of human or mechanical error as well as other factors,
however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY’S takes all necessary measures to ensure that the information it uses in the attribution of a credit rating is
of sufficient quality and from sources that MOODY’S considers reliable including, where applicable, independent third-party sources. However, MOODY’S is not an auditor and cannot under any circumstances
independently verify or validate the information received as part of the rating process or during the preparation of its Publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers accept no liability to any person or entity for any indirect, special,
indirect or incidental losses or damages, whatever they may be, resulting from or in connection with the information contained in this document or the use or inability to use such information, even if
MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers are advised in advance of the possibility of such loss or damage, including, but not limited to:
(a) any loss of present or future profits or (b) any loss or damage occurring when the financial instrument in question is not the subject of a specific credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers accept no responsibility for any direct or compensatory loss or
damage to any person or entity, including but not limited to negligence (but excluding fraud, willful misconduct or any other type of liability which for the avoidance of doubt by
the law cannot be excluded) on the part of, or any eventuality under or beyond the control of MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,
arising out of or in connection with the information contained herein or the use or inability to use such information.
NO WARRANTIES, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY CREDIT RATING,
THE EVALUATION, OTHER OPINIONS OR INFORMATION ARE GIVEN OR CONDUCTED BY MOODY’S IN ANY FORM OR IN ANY MANNER.
Moody’s Investors Service, Inc., a rating agency wholly owned subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporations and
municipal bonds, debentures, notes and commercial paper) and preferred shares rated by Moody’s Investors Service, Inc. have, prior to any credit rating being assigned, agreed to pay to Moody’s
Investors Service, Inc. for credit rating opinions and services rendered by its fees ranging from $ 1,000 to approximately $ 5,000,000. MCO and Moody’s Investors Service also maintain policies
and procedures to ensure the independence of the credit ratings and credit rating processes of Moody’s Investors Service. Information concerning certain affiliations that may exist between the directors of
MCO and rated entities, and between entities that hold Moody’s Investors Service credit ratings and have also publicly declared to the SEC an ownership interest in MCO of more than 5%,
is posted annually at www.moodys.com under the heading âInvestor relations – Corporate governance – Membership policy for directors and shareholdersâ.
Additional Terms for Australia Only: Any posting of this document in Australia complies with the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty
Limited ABN 61 003 399 657AFSL 336969 and / or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (if applicable). This document is intended to be provided only to
âWholesale customersâ within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from Australia, you represent to MOODY’S that you are, or
access the document as a representative of a “wholesale client” and that neither you nor the entity you represent will directly or indirectly distribute this document or its content to
âRetail clientsâ within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion on the creditworthiness of a debt security of the issuer, not on the
Equity securities of the issuer or any form of security available to retail investors.
Additional Terms for Japan Only: Moody’s Japan KK (âMJKKâ) is a 100% subsidiary credit rating agency of Moody’s Group Japan GK, which is 100% owned by Moody’s Overseas
Holdings Inc., a wholly owned subsidiary of MCO. Moody’s SF Japan KK (âMSFJâ) is a wholly owned subsidiary credit rating agency of MJKK. MSFJ is not a nationally recognized statistical agency
Rating Organization (âNRSROâ). Therefore, the credit ratings assigned by MSFJ are non-NRSRO credit ratings. Non-NRSRO credit ratings are assigned by an entity that is not an NRSRO and,
therefore, the rated obligation will not qualify for certain types of processing under US law. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and
their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as the case may be) hereby discloses that most issuers of debt securities (including corporate and municipal bonds, bonds, notes and commercial paper) and preferred shares rated by
MJKK or MSFJ (if applicable) have, prior to the assignment of any credit rating, agreed to pay MJKK or MSFJ (if applicable) for the credit rating opinions and services rendered by them a fee ranging from
100,000 JPY to approximately 550,000,000 JPY.
MJKK and MSFJ also maintain policies and procedures to meet Japanese regulatory requirements.