Moody's Corp.has agreed to acquire a 4.99% stake in EulerHermes Group SA subsidiary Euler Hermes Rating GmbH.
The move is part of a collaboration between the two companiesthrough which Euler Hermes Rating GmbH will launch new credit ratings services forsmall- and medium-sized enterprises and mid-cap companies in certain European countries.
The new rating product will be launched in Germany in early 2017,followed by other European countries later in the year.
Moody's said the investment was funded through internationalcash on hand and is not material to its earnings. The terms of the transaction werenot disclosed.