Morgan Stanley 2009 Annual Report Download - page 106

The tables below show the Company’s credit exposure from its corporate lending positions and lending
commitments as of December 31, 2009 and December 31, 2008. Since commitments associated with these
business activities may expire unused, they do not necessarily reflect the actual future cash funding requirements:
Corporate Lending Commitments and Funded Loans at December 31, 2009
Years to Maturity Total Corporate
Lending
Exposure(2)
Corporate
Lending
Exposure at
Fair Value(3)
Corporate
Lending
Commitments(4)Credit Rating(1) Less than 1 1-3 3-5 Over 5
(dollars in millions)
AAA ................... $ 542 $ 233 $ — $ — $ 775 $ — $ 775
AA..................... 3,141 4,354 275 — 7,770 80 7,690
A ...................... 3,116 9,796 1,129 548 14,589 1,918 12,671
BBB.................... 4,272 16,191 3,496 164 24,123 4,548 19,575
Investment
grade ......... 11,071 30,574 4,900 712 47,257 6,546 40,711
Non-investment grade ...... 749 6,525 6,097 3,322 16,693 9,517 7,176
Total ........... $11,820 $37,099 $10,997 $4,034 $63,950 $16,063 $47,887
(1) Obligor credit ratings are determined by Credit Risk Management using methodologies generally consistent with those employed by
external rating agencies.
(2) Total corporate lending exposure represents the Company’s potential loss assuming the fair value of funded loans and lending
commitments were zero.
(3) The Company’s corporate lending exposure carried at fair value includes $15.6 billion of funded loans and $0.4 billion of lending
commitments recorded in Financial instruments owned and Financial instruments sold, not yet purchased, respectively, in the
consolidated statements of financial condition as of December 31, 2009. The Company’s corporate lending exposure carried at amortized
cost includes $850 million of funded loans recorded in Receivables—other loans in the consolidated statements of financial condition.
(4) Amounts represent the notional amount of unfunded lending commitments less the amount of commitments reflected in the Company’s
consolidated statements of financial condition.
Corporate Lending Commitments and Funded Loans at December 31, 2008
Years to Maturity Total Corporate
Lending
Exposure(2)
Corporate
Lending
Exposure at
Fair Value(3)
Corporate
Lending
Commitments(4)Credit Rating(1) Less than 1 1-3 3-5 Over 5
(dollars in millions)
AAA .................... $ 842 $ 114 $ 1,374 $ — $ 2,330 $ 67 $ 2,263
AA ...................... 2,685 718 3,321 73 6,797 33 6,764
A ....................... 4,899 5,321 5,892 69 16,181 2,291 13,890
BBB ..................... 2,745 7,722 8,299 255 19,021 5,037 13,984
Investment grade . . . 11,171 13,875 18,886 397 44,329 7,428 36,901
Non-investment grade ....... 1,144 3,433 5,301 6,516 16,394 9,389 7,005
Total ............. $12,315 $17,308 $24,187 $6,913 $60,723 $16,817 $43,906
(1) Obligor credit ratings are determined by Credit Risk Management using methodologies generally consistent with those employed by
external rating agencies.
(2) Total corporate lending exposure represents the Company’s potential loss assuming the fair value of funded loans and lending
commitments were zero.
(3) The Company’s corporate lending exposure at fair value includes $19.9 billion of funded loans and $3.1 billion of lending commitments
recorded in Financial instruments owned and Financial instruments sold, not yet purchased, respectively, in the consolidated statements
of financial condition as of December 31, 2008.
(4) Amounts represent the notional amount of unfunded lending commitments less the amount of commitments reflected in the Company’s
consolidated statements of financial condition.
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