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
Você está prestes a deixar o site local do Brasil e será direcionado ao site global. Deseja continuar?
Não exibir esta mensagem novamente
Sim
Não
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 Places on Review for Downgrade the Ratings of the Five Largest South African Banks

04 Apr 2017

Rating action follows the sovereign rating's review announcement

Limassol, April 04, 2017 -- Moody's Investors Service, ("Moody's") has today placed on review for downgrade the Baa2 long-term local- and foreign-currency deposit ratings of the five largest South African banks: The Standard Bank of South Africa Limited (Standard Bank of South Africa), FirstRand Bank Limited, Absa Bank Limited, Nedbank Limited, and Investec Bank Ltd. The rating agency has also placed on review for downgrade Standard Bank Group Limited's Baa3 issuer rating. A full list of the banks' ratings affected by today's rating action is at the end of this press release.

According to Moody's, today's rating action is driven primarily by: (1) potential weakening of the South African government's credit profile, in particular in the country's institutional, economic and fiscal strengths, as captured by Moody's recent decision to place South Africa's Baa2 government bond ratings on review for downgrade. For further information, refer to the sovereign press release "Moody's places South Africa's Baa2 ratings on review for downgrade" (https://www.moodys.com/research/--PR_364595). The banks' sizable holdings of sovereign debt securities inevitably link their creditworthiness to that of the national government; and to a lesser extent, by (2) the challenges these banks face in view of weak economic growth in South Africa and the protracted political tensions, which are likely to induce fragile investor confidence, asset price volatility and increased funding costs. These factors are likely to put pressure on their operating income and resilient performance so far.

RATINGS RATIONALE

-- WEAKENING CREDIT AND MACRO PROFILE OF THE SOUTH AFRICAN GOVERNMENT EXERTS PRESSURE ON BANKS' CREDIT PROFILE

The rating action is primarily driven by the potential deterioration of the South African government's credit profile, as captured by Moody's recent rating action to place the sovereign rating (Baa2) on review for downgrade. The banks' high sovereign exposure, mainly in the form of government debt securities held as part of their liquid assets requirement, links their credit profile to that of the government. The top five banks' overall sovereign exposure, including loans to state-related entities, averages around 145% of their capital bases, according to South African Reserve Bank's (SARB) regulatory returns (BA900) as of January 2017. In view of the correlation between sovereign and bank credit risk, these banks' standalone credit profile and ratings are constrained by the rating of the government. As a result, the baseline credit assessments (BCA) of baa2 assigned to Standard Bank of South Africa, FirstRand Bank Limited, Nedbank Limited, and Investec Bank Ltd have been placed on review for downgrade, while the BCA of baa3 for ABSA Bank Limited is unaffected, as it already captures the risks of a lower rated sovereign.

In addition, Moody's says that the rating reviews also take into account the challenges that the banks' financial performance will face because of South Africa's still subdued economic growth. The rating agency expects GDP growth of only 1.1% in 2017 and 1.7% in 2018, levels significantly below the government's target growth. These challenging economic conditions, combined with potentially weaker investor confidence, volatility in asset prices, and higher funding costs will likely pressure banks' earnings and asset quality metrics, and challenge their resilient performance so far.

-- FACTORS TO BE CONSIDERED IN THE RATING REVIEW

The rating review for downgrade will predominantly focus on the evolution of the sovereign rating and how this impacts banks' credit profiles. Moreover, Moody's will also assess the likely impact on banks' asset quality, securities holdings valuations, and funding costs in light of the recent political developments and macro-economic challenges. However, the rating agency also notes the broad resilience demonstrated by South African banks in recent years, which was supported by rising capital and liquidity buffers.

As part of the review process, Moody's will consider each bank's recent financial performance, key rating drivers and potential vulnerabilities:

- Standard Bank of South Africa (SBSA) and Standard Bank Group (SBG)

In assessing the forward-looking impact of South Africa's challenging operating environment, Moody's will review SBSA's profitability metrics. In 2016, operating income grew by 9%, lagging operating expenses growth of 12%, which caused the bank's cost-to-income ratio to increase to 59% in 2016 from 57.6% in 2015. The rating agency will also monitor the evolution and future expectation of the bank's credit impairment costs (particularly in mortgage loans, instalments loans, finance leases and credit cards) in view of the high interest rates, although SBSA's credit loss ratio improved to 0.87% in 2016 from 0.92% in 2015. SBSA reported a Common Equity Tier 1 (CET1) ratio (including unappropriated profits) of 13.7% in December 2016, while the non-performing loans as a proportion of gross loans (NPLs) improved slightly to 3.0% in 2016 from 3.1% in 2015.

In addition to SBSA's rating action, Moody's also placed on review for downgrade the Baa3 long-term local-and foreign-currency issuer rating of SBG. SBG's issuer rating is positioned one notch lower than the local- and foreign-currency deposit ratings of its fully owned main banking subsidiary SBSA, reflecting the structural subordination of SBG's creditors to those of SBSA. Consequently, a potential downgrade of SBSA's ratings has a direct impact on its parent company's rating as well.

- FirstRand Bank Limited (FRB)

In terms of its review of FRB, Moody's will assess the performance of its various operating franchises amid a challenging operating environment and an expected pressure on its revenues, although the rating agency notes the solid 18% year-on-year growth in its normalised earnings in the first six-months as of December 2016 (the bank's fiscal year-end is as of 30 June 2017). The bank's NPL ratio increased marginally to 2.36% in December 2016 from 2.31%% in December 2015, with the absolute level of NPLs increasing by about 5% during the same period. Total NPL coverage ratio is relatively high at 79% as of December 2016 and its credit loss ratio remained at 0.79% as of December 2016. During the rating review period, Moody's will gauge the evolution of NPLs in the next 12-18 months and the impact on the bank's overall performance and any material impact on its loss absorbance capacity. FRB reports the strongest capitalisation among the five largest South African banks, with a CET1 ratio of 14.1% as of December 2016, about 50 basis points higher than reported in December 2015.

- Absa Bank Limited

As part of its review of Absa Bank, Moody's will assess the high likelihood of government support, in the context of a potentially weakening government capacity, which currently results in one notch uplift from its BCA of baa3 to a deposit rating of Baa2. The bank's BCA of baa3 reflects consistently solid net profitability with net income to assets ratio of around 1%. At the same time, capitalization has improved with a CET1 ratio at 11.6% as of December 2016 up from 10.5% as of December 2015, although the cost of risk has increased to 1.04% for 2016 from 0.89% for 2015, which we understand is predominantly due to a large single name exposure.

- Nedbank Limited

As part of its review of Nedbank Limited, Moody's will look into the sustainability of the bank's strong year-on-year profit growth of 21% in 2016, and how the weak economic conditions and protracted political tensions in South Africa are likely to affect profitability for 2017. Moody's will also examine the possible impact on Nedbank Limited's asset quality and capital adequacy. As of December 2016 Nedbank Group reported a slight uptick in non-performing loans to 2.7% of gross loans (a good proxy for Nedbank Limited's ratios) from 2.5% in 2015, while Nedbank Limited reported a common equity Tier 1 ratio of 11.7% as of December 2016 (2015: 10.6%).

- Investec Bank Limited (IBL)

As part of its review of the credit implications for IBL, Moody's will evaluate its financial performance, in the context of lower headline earnings in the first six months of its financial year, to September 2016, in view of a change in accounting treatment of investment income from fair value to equity accounting. In addition, Moody's will also assess the expected performance of the bank's loan book, that has proved resilient so far with reported gross NPLs to gross loans of only 1.25% in September 2016, a slight deterioration from 1.13% in September 2015. IBL's credit loss ratio of 0.30% is the lowest among the largest five banks, supported by its larger exposure to non-household borrowers who have displayed better capacity to withstand higher interest rates. The bank's reported CET1 ratio was 10.5% as of September 2016, although with the highest leverage ratio among its local peers of 7.6%.

WHAT COULD MOVE THE RATINGS UP/DOWN

As indicated by the review for downgrade on the sovereign rating, any further deterioration in the creditworthiness of South Africa or its macro profile would exert additional downward pressure on the banks' ratings, in view of their sizeable holdings of sovereign debt securities. In addition, the banks' ratings could be downgraded if operating conditions worsen more than currently anticipated, leading to a deterioration in their financial performance.

Conversely, there is no upwards rating momentum of banks' ratings, as their standalone credit profiles are constrained by the sovereign rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in January 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

RATINGS PLACED ON REVIEW FOR DOWNGRADE BY TODAY'S ACTIONS

Issuer: Absa Bank Limited

....LT Bank Deposits (Local & Foreign Currency), currently Baa2, Outlook changed To Rating Under Review From Negative

....ST Bank Deposits (Local & Foreign Currency), currently P-2

....LT Counterparty Risk Assessment, currently Baa2(cr)

....ST Counterparty Risk Assessment, currently P-2(cr)

Issuer: FirstRand Bank Limited

....LT Bank Deposits (Local & Foreign Currency), currently Baa2, Outlook changed To Rating Under Review From Negative

....ST Bank Deposits (Local & Foreign Currency), currently P-2

....Senior Unsecured Regular Bond/Debenture, currently Baa2, Outlook changed To Rating Under Review From Negative

....Subordinate, currently Baa3/Ba1

....Junior Subordinate, currently Ba1(hyb)

....Senior Unsecured MTN program, currently (P)Baa2

....Subordinate MTN program, currently (P)Ba1

....Junior Subordinate MTN program, currently (P)Ba1

....Other Short Term, currently (P)P-2

....Commercial Paper, currently P-2

....Adjusted Baseline Credit Assessment, currently baa2

....Baseline Credit Assessment, currently baa2

....LT Counterparty Risk Assessment, currently Baa1(cr)

....ST Counterparty Risk Assessment, currently P-2(cr)

Issuer: Investec Bank Ltd.

....LT Bank Deposits (Local & Foreign Currency), currently Baa2, Outlook changed To Rating Under Review From Negative

....ST Bank Deposits (Local & Foreign Currency), currently P-2

....Senior Unsecured Regular Bond/Debenture, currently Baa2, Outlook changed To Rating Under Review From Negative

....Senior Unsecured MTN program, currently (P)Baa2

....Subordinate MTN program, currently (P)Baa3

....Tier III Debt MTN program, currently (P)Baa3

....Adjusted Baseline Credit Assessment, currently baa2

....Baseline Credit Assessment, currently baa2

....LT Counterparty Risk Assessment, currently Baa1(cr)

....ST Counterparty Risk Assessment, currently P-2(cr)

Issuer: Nedbank Limited

....LT Bank Deposits (Local & Foreign Currency), currently Baa2, Outlook changed To Rating Under Review From Negative

....ST Bank Deposits (Local & Foreign Currency), currently P-2

....Subordinate, currently Baa3

....Senior Unsecured MTN program, currently (P)Baa2

....Subordinate MTN program, currently (P)Baa3

....Adjusted Baseline Credit Assessment, currently baa2

....Baseline Credit Assessment, currently baa2

....LT Counterparty Risk Assessment, currently Baa1(cr)

....ST Counterparty Risk Assessment, currently P-2(cr)

Issuer: The Standard Bank of South Africa Limited

....LT Bank Deposits (Local & Foreign Currency), currently Baa2, Outlook changed To Rating Under Review From Negative

....ST Bank Deposits (Local & Foreign Currency), currently P-2

....Senior Unsecured MTN program, currently (P)Baa2

....Adjusted Baseline Credit Assessment, currently baa2

....Baseline Credit Assessment, currently baa2

....LT Counterparty Risk Assessment, currently Baa1(cr)

....ST Counterparty Risk Assessment, currently P-2(cr)

Issuer: Standard Bank Group Limited

....LT Issuer Rating (Local & Foreign Currency), currently Baa3, Outlook changed To Rating Under Review From Negative

OUTLOOK ACTIONS:

Issuer: Absa Bank Limited

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

Issuer: FirstRand Bank Limited

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

Issuer: Investec Bank Ltd.

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

Issuer: Nedbank Limited

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

Issuer: Standard Bank Group Limited

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

Issuer: The Standard Bank of South Africa Limited

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

RATINGS UNAFFECTED BY TODAY'S ACTIONS

Issuer: Absa Bank Limited

....NSR LT Bank Deposits (Local Currency), Aa1.za

....NSR ST Bank Deposits (Local Currency), P-1.za

....Baseline Credit Assessment, baa3

....Adjusted Baseline Credit Assessment, baa3

Issuer: FirstRand Bank Limited

....NSR LT Bank Deposits (Local Currency), Aaa.za

....NSR ST Bank Deposits (Local Currency), P-1.za

....NSR Senior Unsecured Regular Bond/Debenture, Aaa.za

....NSR Subordinate, Aa2.za/A1.za

....NSR Junior Subordinate, A1.za (hyb)

....NSR Senior Unsecured MTN program, Aaa.za

....NSR Subordinate MTN program, A1.za

....NSR Junior Subordinate MTN program, A1.za

....NSR Other Short Term, P-1.za

Issuer: Investec Bank Ltd.

....NSR LT Bank Deposits (Local Currency), Aa1.za

....NSR ST Bank Deposits (Local Currency), P-1.za

Issuer: Nedbank Limited

....NSR LT Bank Deposits (Local Currency), Aa1.za

....NSR ST Bank Deposits (Local Currency), P-1.za

....NSR Pref. Stock Non-cumulative, Baa1.za (hyb)

....NSR Senior Unsecured MTN program, Aa1.za

....NSR Subordinate MTN program, Aa3.za

Issuer: The Standard Bank of South Africa Limited

....NSR LT Bank Deposits (Local Currency), Aa1.za

....NSR ST Bank Deposits (Local Currency), P-1.za

The local market analyst for Absa Bank Limited is Nitish Bhojnagarwala, VP-Senior Analyst, Financial Institutions Group, Tel:+971.4.237.9563.

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.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

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.

Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

No Related Data.
© 2021 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 CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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 OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER 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. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS 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, ASSESSMENTS, OTHER OPINIONS, AND 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, ASSESSMENTS, OTHER OPINIONS OR 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.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND 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 its 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 CREDIT RATING, ASSESSMENT, 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 credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service 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.

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 credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

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