Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's Downgrades Turkey's Issuer And Bond Ratings To Ba1 With A Stable Outlook

23 Sep 2016

London, 23 September 2016 -- Moody's Investors Service has today downgraded the Government of Turkey's long-term issuer and senior unsecured bond ratings to Ba1 from Baa3 and assigned a stable outlook. This concludes the review for downgrade that was initiated on 18 July. The drivers of the downgrade are as follows:

1. The increase in the risks related to the country's sizeable external funding requirements.

2. The weakening in previously supportive credit fundamentals, particularly growth and institutional strength.

The stable outlook balances downside risks arising from the erosion in Turkey's economic resilience and increasing balance of payments pressures against credit-positive considerations arising from its large and flexible economy which continues to register positive growth and the government's strong fiscal track record.

Concurrently, Moody's has downgraded to Ba1 from Baa3 the senior unsecured bond rating of Hazine Mustesarligi Varlik Kiralama A.S., a special purpose vehicle wholly owned by the Republic of Turkey; and assigned a stable outlook.

In conjunction with today's rating actions, Moody's has also lowered Turkey's long-term foreign-currency bond ceiling to Baa2 from Baa1, and its long-term foreign-currency deposit ceiling to Ba2 from Baa3. Turkey's short-term foreign-currency deposit ceiling has been lowered to NP from P-3, and the country's short-term foreign-currency bond ceiling to P-3 from P-2. Furthermore, Turkey's local currency bond and deposit ceilings have been lowered to Baa1 from A3.

A full list of affected ratings is provided towards the end of this press release.

RATINGS RATIONALE

In recent years, Turkey's credit profile has presented a marked contrast between significant external imbalances which heighten its exposure to external shocks and/or loss of confidence, and a strong government balance sheet, supported by a robust fast-growing economy.

The upgrade to Baa3 in May 2013 reflected two things. First, increasing assurance that credit strengths such as economic growth and fiscal performance were likely to be sustained at levels compatible with a Baa3 rating. And second, an assumption that political stability would enable planned structural reform implementation to address external imbalances, such as promoting domestic savings and reducing the economy's reliance on imports (across a range of sectors including energy) and imported capital.

However, since the upgrade in 2013, the risk of a shock arising as a result of the country's weak external position has become more pronounced, given the combination of persistently high political risks and volatile investor sentiment. Moreover, credit fundamentals that had previously supported a Baa3 rating (e.g., high levels of institutional strength and a healthy economic outlook) have deteriorated. In particular, Moody's expects growth will slow over the coming years, as constraints on the externally-funded, consumption-fuelled economy emerge, the reform agenda slows further and the investment climate remains weak.

Moody's believes that this slow deterioration in Turkey's credit profile will continue over the next 2-3 years and the balance of risks are better captured at a Ba1 rating level. The stable outlook on the Ba1 rating reflects the strengths in the credit profile, namely the government's robust balance sheet, which would allow for the absorption of shocks and flexible responses.

FIRST DRIVER: ELEVATED RISKS RELATED TO THE COUNTRY'S SIZEABLE EXTERNAL FUNDING REQUIREMENTS

Moody's notes that Turkey continues to operate in a fragile financial and geopolitical environment and that its external vulnerability has risen, both over the past two years and more recently as a result of unpredictable political developments and volatile investor perception. This has credit implications for Turkey given its dependence on foreign capital. The risk of a sudden, disruptive reversal in foreign capital flows, a more rapid fall in reserves and, in a worst-case scenario, a balance of payments crisis has increased.

Turkey's current account deficit remains elevated (4.3% and 4% forecast in 2016 and 2017 respectively) and exceeds those of other similarly rated sovereigns despite a recent improvement tied to low oil prices. In particular, the upsurge in security-related incidents, specifically in Ankara and Istanbul, and the sanctions that were imposed by Russia last year have had an adverse impact on the tourism sector in Turkey, which accounts for 4.4% of GDP and around 15% of total current receipts (2015). In the first half of this year, tourist arrivals and revenues were down 27.9% and 28.2% (compared to the same period last year) respectively. While the removal of Russian sanctions is likely to provide some support to the sector, full normalization will be delayed as long as political and security risks remain elevated.

Additionally, the country's external indebtedness has risen. According to our estimates, Turkish corporate, banking and government sectors need to repay approximately $155.8 billion in external liabilities this year. Together with the current account deficit, this amounts to an estimated 26% of GDP in 2016 and in 2017. This large external funding need exposes the country to sudden shifts in investor confidence, which has been weak and volatile over the past 18 months, as reflected in the volatility of the Turkish lira (vis-a-vis the US dollar) and substantial volatility in portfolio flows.

Although debt rollover rates have shown resilience over that period, including recently following the coup attempt, with only a modest re-pricing of new facilities, Moody's believes that the combination of elevated external financing needs, the rise of domestic political risk, and the persistence of geopolitical threats in combination with volatile financing environment raises the risk of a balance of payments crisis in Turkey beyond that which prevailed at the time of the upgrade.

Furthermore, external buffers to withstand external shocks remain low. Looking across the economy in aggregate, Moody's External Vulnerability Indicator (which reflects the coverage of maturing external financing, including non-resident deposits and short-term external liabilities, by foreign-exchange reserves excluding gold) positions Turkey unfavorably vis-a-vis its peers. Moody's estimates that this indicator stood at 187.3% in 2016, more than 20 percentage points above the level in 2013, and that the indicator will remain at an elevated level for the foreseeable future.

That said, a mitigating factor is that the Turkish banking sector has foreign-currency reserves at the central bank amounting to around 11% of GDP (end 2015). In the event of systemic stress, these buffers along with liquid assets on the banks' balance sheet would be sufficient to cover banking sector liabilities due over the next 12 months. In contrast, the government is in a weaker position to support the economy as a whole: net foreign exchange reserves (excluding foreign exchange reserves held by the banking system at the central bank) account for around 30% of total gross foreign exchange reserves (as of end 2015), limiting the central bank's ability to intervene in the currency markets.

SECOND DRIVER -- WEAKENING OF PREVIOUSLY SUPPORTIVE CREDIT FUNDAMENTALS

In Moody's view, the erosion of Turkey's institutional strength, which was evident prior to the failed coup attempt but which the event may exacerbate, has negative implications both for the level of growth in the coming years and for the implementation of the structural changes the government has identified are needed to deliver balanced, sustainable growth and relieve external pressures.

Turkey's institutional strength has eroded since the rating agency assigned a negative outlook to the rating in April 2014. Qualitative surveys on Turkey's institutions began to erode two years ago particularly reflected in the Worldwide Governance Indicators for control for corruption and more recently reflected in the World Economic Forum's Competitiveness Indicator where the assessment of institutions experienced the most severe drop, falling 11 places to 75 (out of 140).

More recently, the government's response to the unsuccessful coup attempt raises further concerns regarding the predictability and effectiveness of government policy and the rule of law going forward. This has consequences for both institutional and economic strength. As one example, the large-scale suspensions in the civil service raise doubts over the capacity of Turkey's policy making institutions to make meaningful further progress in both legislating and implementing the reform program. As another, the government's actions in the private sector towards institutions that have ties to the Gulen movement are likely to affect the country's growth trajectory negatively, by raising concerns regarding the protection of private investment and the investment climate in general.

As a consequence, the rating agency now expects real GDP will grow at an average of 2.7% over the 2016-19 period, which is significantly lower than the average growth of 5.5% over 2010-14 and also lower than its forecasts when it upgraded Turkey to Baa3 in May 2013.

Moreover, although the government has made some progress on its reform agenda earlier in the year and passed an important savings-oriented reform policy after the failed coup attempt, Moody's believes that that the prospect of sustained reform implementation that decisively moves the economy from consumption- and external capital-driven growth to a more balanced growth model is low. Weakened institutions will likely face the distraction of constitutional change at the same time as struggling to balance the tensions inherent in the need to simultaneously boost near-term growth, deal with heightened security risks and consolidate power in a post- coup environment. As a result, external risks are unlikely to diminish in the coming years, and may rise.

RATIONALE FOR A STABLE OUTLOOK

Moody's decision to assign a stable outlook reflects the balance of risks at the Ba1 rating level. Turkey's headline fiscal metrics are still favorable, notwithstanding the fact that the country has only just completed an almost two-year electoral cycle. Since the beginning of 2009, Turkey's debt burden has fallen by more than 13 percentage points to 32.9% of GDP in 2015. Under the baseline, Moody's expects the debt ratio to remain broadly stable at 32.2% of GDP in 2016.

Moreover, Turkey's ability to finance its outstanding stock of debt is supported by the relatively low share of central government foreign-currency-denominated debt (35.1% 2015, down from 46.3% in 2003) and the favorable maturity profile of the central government's debt stock: a significant portion of the central government debt stock is contracted under fixed rates and the average maturity of the central government debt stock is now 6.3 years (and the maturity of its external debt stock is now almost 10 years). This favorable structure mitigates somewhat the impact of a further depreciation of the Turkish lira against the US dollar, and from a rise in global interest rates on the government's balance sheet. In fact, the central government's external debt payments due next year are modest at only $11.3 billion (1.5% of forecast 2017 GDP). Looking ahead, Turkey's policy direction and its ability to maintain fiscal stability in an environment of prolonged lower growth (than previously seen) will be an important driver of sovereign creditworthiness.

WHAT COULD MOVE THE RATING UP/DOWN

Upward movement in Turkey's sovereign rating will be constrained by balance-of-payments factors as long as external imbalances remain large. However, upward rating pressure could materialize in the event of structural reductions in these vulnerabilities or material improvements in Turkey's institutional environment or competitiveness. Reductions in political risk emanating either from the geopolitical or in the domestic political environment, while credit positive, would not result in upward rating action in the absence of other credit improvements.

Downward pressures on Turkey's sovereign rating could emerge if one or a combination of the following occur: (1) trends in the public finances were to be materially reversed; (2) a sudden and sustained reversal in foreign capital flows; (3) a more than anticipated erosion of institutional strength or an increase in political risks greater than what has been anticipated.

Prompted by the factors described above, the publication of this credit rating action occurs on a date that deviates from the previously scheduled release date in the sovereign release calendar, published on www.moodys.com.

GDP per capita (PPP basis, US$): 20,438 (2015 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 4% (2015 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 8.8% (2015 Actual)

Gen. Gov. Financial Balance/GDP: -0.6% (2015 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -4.5% (2015 Actual) (also known as External Balance)

External debt/GDP: 55.4% (2015 Actual)

Level of economic development: Moderate level of economic resilience

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

On 20 September 2016, a rating committee was called to discuss the rating of the Turkey, Government of. The main points raised during the discussion were: The issuer's institutional strength/framework, has materially decreased. The issuer has become increasingly susceptible to event risks. Other views raised included: The issuer's economic fundamentals, including its economic strength, are eroding. The issuer's governance and/or management, have eroded. The issuer's fiscal or financial strength, including its debt profile, has not materially changed.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2015. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

Downgrades:

..Issuer: Turkey, Government of

....LT Issuer Rating, Downgraded to Ba1 from Baa3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3

....Senior Unsecured Shelf, Downgraded to (P)Ba1 from (P)Baa3

..Issuer: Hazine Mustesarligi Varlik Kiralama A.S.

....Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3

Lowers:

..Issuer: Turkey, Government of

....Country Ceiling Bank Deposit Rating, Downgraded to Ba2 from Baa3

....Country Ceiling Bank Deposit Rating, Downgraded to NP from P-3

....Country Ceiling Bond Rating, Downgraded to Baa2 from Baa1

....Country Ceiling Bond Rating, Downgraded to P-3 from P-2

Outlook Actions:

..Issuer: Turkey, Government of

....Outlook, Changed To Stable From Rating Under Review

..Issuer: Hazine Mustesarligi Varlik Kiralama A.S.

....Outlook, Changed To Stable From Rating Under Review

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Alpona Banerji
VP - Senior Credit Officer
Sovereign Risk Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Yves Lemay
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT 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.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of 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 adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to 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 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. 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 applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.