Morgan Stanley 234 EuroWeek Financing financial institutions Morgan Stanley Subordinated debt Senior unsecured Securitisation - 20,000 40,000 60,000 80,000 100,000 120,000 2005 2006 2007 2008 2009 2010 Source: Dealogic. Data to August 20 2010 $m Debt issuance Debt issuance Pricing date: August 3, 2010 Value: €1.5bn Maturity date: August 10, 2020 coupon: 5.375% spread to swaps: 250bp bookrunners: Morgan Stanley Pricing date: July 21, 2010 Value: $1.25bn Maturity date: July 24, 2015 coupon: 4% spread to benchmark: 245bp over USTs bookrunners: Morgan Stanley Pricing date: July 21, 2010 Value: $1.75bn Maturity date: July 24, 2020 coupon: 5.5% spread to benchmark: 270bp over USTs bookrunners: Morgan Stanley Source: Dealogic Rank Lead Manager amount $m no of issues % share 1 Morgan Stanley 26,568 185 100 subtotal 26,568 185 100 total 26,568 185 100 Source: Dealogic (Sep 20, 2009 to Sep 19, 2010) Recent DeaLs - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-2040 2041+ Source: Dealogic. Data to September 1, 2010 (securitisations not included) $m MatuRity PRofiLe toP bookRunneRs cfo Ruth Porat investor relations Suzanne Charnas +1 212 761 3043 key contacts Second quarter 2010, source: Morgan Stanley $bn Institutional Securities 26.3 Global Wealth Management Group 3 Asset management 2 Parent capital 20.2 Discontinued operations 0.2 aVeRage tieR one caPitaL Morgan stanley Long term iDR a short term iDR f1 individual Rating b/c support Rating 5 support Rating floor no floor summary: MS’ ratings reflect the significant challenges faced by the firm during the past few years, mitigated to some extent by considerable improvement in capital and liquidity measures. MS’ profitability, which was weak both nominally and compared to peers through the recent global downturn, was decidedly stronger in 1H10, with higher contributions from a broader mix of institutional securities businesses. The company has significantly reduced its balance sheet, while increasing the proportion of cash and cash equivalent assets. Further, its US bank has helped improve funding options at the margin. In the investment bank, the scope and scale of cash products is being broadened to facilitate customer-initiated flows. The current focus on the global wealth segment is an effort to develop more fee generating businesses to counterbalance less predictable trading and proprietary investment activities. Significant resources are being allocated to the global wealth management group (GWM), while the integration of Morgan Stanley Smith Barney, LLC is proceeding as anticipated. Fitch believes it may be several years, however, before contributions by GWM are consistently and proportionately significant, given the highly competitive, fluid wealth management market. Regulatory uncertainty, including potential business constraints, is an important consideration over the near to intermediate term. fitch Ratings uPDate