The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Moody’s spells out impact of IFRS

Rating agency Moody's Investors Service has detailed the effects it expects to see on European corporate credit ratings from the introduction of International Accounting Standards in January next year.

Although overall Moody's expects IAS not to have a major effect on most companies' ratings, in specific cases the impact will be dramatic. One example the agency gives is Swiss agrochemicals company Syngenta, which Moody's said will see IAS39 increase the reported liability of one of its bonds by nearly 50%, from $677 million to more than $1 billion.

Rival rating agency Standard & Poor's reached similar conclusions in its report on the impact of IAS in March, while Fitch had a different spin in July, warning that a company's ability to engage in M&A activity would be the hardest hit area by the increase in reporting volatility under IAS39.

Moody's spelt out several factors that could affect a company's rating, including:

? Disclosures of risks not previously evident;

? Changing market perception of the issuer;

? Breaching banking covenants with restated figures;

? Regulatory impact of clampdowns on revealed risk; and,

? Changes by the issuer in its approach to managing risk and issuing different instruments.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree