Moodys.com
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 affirms Ireland's A2 ratings, changes outlook to positive from stable

13 Aug 2021

Paris, August 13, 2021 -- Moody's Investors Service ("Moody's") has today affirmed the Government of Ireland's long-term issuer rating of A2. Concurrently, the outlook has been changed to positive from stable. Ireland's senior unsecured bond, MTN programme and commercial paper ratings have also been affirmed at A2, (P)A2 and Prime-1, respectively.

The key drivers behind the positive outlook on the A2 ratings are:

1. The resilience of the Irish economy to shocks, and Moody's expectations that developments with regard to Brexit, global corporate income tax reform, or the pandemic will not derail economic progress; and

2. Moody's expectations that the government will remain committed to reducing debt, thus preserving the increase in fiscal space that has been rebuilt in recent years.

Concurrently, Moody's has also affirmed the National Asset Management Agency's (NAMA) A2 backed long-term issuer rating and Prime-1 backed short-term issuer ratings and backed commercial paper Prime-1 ratings. NAMA's ratings are aligned with those of the Irish sovereign, as Moody's views NAMA as a vehicle of public policy that is indistinguishable from the Irish government. Moody's considers that the willingness of the Irish government to back NAMA's obligations is no lower than its commitment to service its own sovereign bonds. The outlook on the ratings has also been changed to positive from stable.

Ireland's long-term local and foreign-currency bond and deposit ceilings remain unchanged at Aaa. The short-term foreign currency bond and deposit ceilings are also unaffected by this rating action and remain at P-1.

RATINGS RATIONALE

RATIONALE FOR THE POSITIVE OUTLOOK

FIRST DRIVER: THE IRISH MODEL HAS BEEN MORE RESILIENT TO SHOCKS THAN MOODY'S HAD PREVIOUSLY ANTICIPATED

Being a small and open economy exposes Ireland to shocks. However, the Irish economy has successfully weathered several shocks in recent years, including Brexit and the pandemic. While there is still lingering uncertainty over these issues, as well as global corporate tax reform, Moody's view is that the Irish economy remains well-positioned to absorb any negative credit implications associated with these challenges.

Irish GDP continued to record strong growth during the pandemic. Real GDP growth came in at 5.9% in 2020 despite the pandemic shock, after average growth of 9.8% in 2014-19. While multinational corporations underpinned the strong growth in activity, Moody's believes that it also reflects the attractiveness of some key sectors dominated by multinational corporations. In particular, the resilience of the pharmaceutical, medical and technology sectors, which are dominated by foreign-owned multinational corporations, throughout the pandemic underpinned the strong growth in exports.

Modified final domestic demand, which better captures domestic activity, declined by 4.7% in 2020. Given the severe pandemic-related restrictions in place in the country, the severity of the contraction is not disproportionate compared to peers. Moody's views the support measures introduced by the authorities as being effective in protecting the supply side of the economy and in mitigating the impact of the shock on households' income.

While Brexit will continue to have negative implications for some Irish entities—particularly in the agricultural sector—over the next few years, Moody's believes that Ireland's credit profile has also been and will remain resilient to this shock, though implementation of permanent trade agreements will likely result in short-term trade frictions and force Irish exporters to re-organise their supply chains (and may actually discourage some producers from exporting). It could also have negative repercussions on employment in some sectors such as agriculture and agri-processing. Ireland will receive around €1 billion in capital receipts from the European Union (EU, Aaa stable) as part of the Brexit Adjustment Reserve to support affected companies, especially in agriculture-related sectors, and to encourage reskilling of affected workers. Consequently, Moody's view remains that the economy's fundamentals will not be materially affected.

Looking ahead, global corporation tax reform is among the main risks facing Ireland's credit profile. Although Ireland has so far opposed this agreement, Moody's believes that Ireland will eventually join whatever agreement is finally struck. While this will likely have some impact on future tax revenues and could deter some foreign investors from making future investments, Moody's does not believe that it will have a large long-term negative impact on the public finances and the strength of the economy.

The government has estimated that as a result of the global tax initiative, corporate tax receipts could be €2 billion lower over the medium term. This revenue shortfall is already incorporated in the authorities' fiscal projections, and it is included in Moody's forecasts. Once the details of the agreement are known, this estimate could be revised upward. Risks associated with the global tax reform are exacerbated by the concentration of corporate tax receipts in the country, with ten companies accounting for 51% of net receipts in 2020. Foreign-owned multinational corporations accounted for 82% of net receipts in 2020. In addition to the impact on revenue, a reduced presence of multinational corporations and lower FDI flows in the country could also weigh on Ireland's economic strength.

Moody's baseline scenario is that Ireland will manage these revenue shortfalls, and that the reform will not affect the presence of multinational corporations already present in the country. Many multinationals have long-established businesses in Ireland and will likely continue to use the country as their base for exports to European and other markets. Beyond its attractive tax rate, the Irish economy also benefits from several assets, including its highly skilled, English-speaking and flexible labour force, and easy access to European markets. Ireland's status as a preferred destination for US (United States of America, Aaa stable) multinational corporations in Europe also stems from its relative proximity to the US and a smaller time difference compared with most other parts of Western Europe. Ireland's capacity to manage other shocks in the recent past provides additional comfort over the authorities' capacities to mitigate the impact of the reform.

SECOND DRIVER: DEBT IMPROVEMENTS HAVE REMAINED RESILIENT TO THE PANDEMIC

Irish fiscal and debt metrics deteriorated as a result of the pandemic, albeit to a more modest extent than for peers. After two years of small surpluses, the Irish government recorded a deficit of 5.0% of GDP in 2020. The latter was driven by the introduction of a sizeable support package to limit the scarring impact of the pandemic on the real economy. The fiscal impact of the support measures totalled €25 billion (6.7% of GDP) in 2020, and is expected to total €16.3 billion (4.0% of GDP) in 2021. A robust revenue performance greatly softened the impact of fiscal support on headline deficits. The deterioration in the fiscal position (-5.3pp of GDP) was more modest and the headline deficit smaller than for peers at the A1 and A2 rating levels. Like other EU sovereigns, Ireland has also experienced a significant improvement in debt affordability metrics because of the low interest rate environment.

Moody's expects debt to return to a downward trajectory in 2022, driven by lower deficits and strong nominal growth. Moody's forecasts the deficit to decline to 3.4% in 2022, and to fall below 2% of GDP from 2023 onwards. The July 2021 Summer Economic Statement marks a departure from previous fiscal policy strategy by introducing expenditure ceilings for the years 2022-2025 that will grow at a pace broadly in line with the estimated trend growth rate of the economy (estimated at 5%) for 2022-25. The ceiling will not be amended in case tax revenues fluctuate as a result of the economic cycle or profitability levels for important corporates. This strategy departs from that of previous years, when outperforming tax receipts, largely driven by higher-than-projected corporation tax receipts, have often fueled an increase in current spending in excess of what had been budgeted. The government's capacity to comply with the expenditure ceiling will be a key indication on the government's fiscal policy effectiveness and would provide additional confidence over the trajectory of public finances.

The Summer Economic Statement also points to a gradual reduction in the budget deficit, which reflects health- and infrastructure-related spending pressures that predate the pandemic. The Summer Economic Statement stressed the need to improve the provision of healthcare, especially through Slaintecare -- the government's ten-year programme introduced in 2018 to reform the healthcare system. Prior to the pandemic, healthcare had been a recurring cause of over-spending, reflecting weak budgeting and implementation. The Summer Economic Statement also increased budgeted capital expenditure by a cumulative €5.9 billion (1.4% of forecast 2022 GDP) over 2022-25 compared with the April Stability Programme. Higher capital expenditure aims to address the under-supply of social housing, and to improve other infrastructure, including transportation.

While the higher spending levels and more gradual reduction in deficits will slow the debt reduction process, Moody's believes that the trajectory of public finances will remain favourable compared to peers. From 2023 onwards, only capital expenditure will be covered by borrowing needs. In addition, infrastructure investment will likely have a positive impact on Ireland's economic attractiveness, which will in turn have a positive impact on investment by multinational corporations. By 2025, Moody's forecasts government debt to reach 57% of GDP and to around 107% of GNI* (based on GNI* forecasts from the Summer Economic Statement).

In addition, Moody's sees sources of further improvements to the debt trajectory, including the government's sizeable cash reserves and the potential sale of government stakes in Irish banks. At end-July 2021, the government has cash reserves worth €30.5 billion (7.4% of 2021 forecast GDP), up from €17.4 billion (4.7% of 2020 GDP) at end-2020. Given the front-loaded nature of issuances, reserves will likely decline in the second half of 2021, but Moody's does not expect the government to use all of these buffers to finance the deficit. Meanwhile, government stakes in Irish banks amount to €4.7 billion (estimated market value, equivalent to 1.1% of GDP) in March 2021. The government announced in June 2021 its intention to start selling its 14% stake in Bank of Ireland in the following six months. Proceeds could be used to reduce government debt, but the overall impact would be small.

RATIONALE FOR THE AFFIRMATION OF THE A2 RATINGS

The A2 ratings reflect Ireland's high wealth levels, strong growth rates (even throughout the coronavirus pandemic) as well as robust institutions and governance, balanced against still-elevated public debt and economic volatility.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Ireland's ESG Credit Impact Score is positive (CIS-1), reflecting low exposure to environmental risk, a positive influence of its social considerations on the rating and, like many other advanced economies, very strong governance profile and in general capacity to respond to shocks.

Ireland's overall E issuer profile score is neutral-to-low (E-2), reflecting low exposure to environmental risks across most categories.

Moody's assesses Ireland's S issuer profile score as positive (S-1). Ireland is among the few sovereigns for which social attributes support the rating, reflecting in particular relatively favorable demographics compared to many other EU countries, as well as its significant diaspora population. The score also reflects high-quality education, high housing availability, and good quality healthcare and basic services.

Ireland's very strong institutions and governance profile support its rating and this is captured by a positive G issuer profile score (G-1). Ireland scores very highly on institutional factors, as captured in the Worldwide Governance Indicators, reflecting strong policy effectiveness and rule of law. Policymakers' effectiveness in addressing the crisis through successive administrations, and in preparing for Brexit despite high uncertainty, further underpins this assessment. Coupled with high wealth levels and moderate government financial strength this supports a high degree of resilience.

GDP per capita (PPP basis, US$): 94,392 (2020 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 5.9% (2020 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): -1% (2020 Actual)

Gen. Gov. Financial Balance/GDP: -5% (2020 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -2.7% (2020 Actual) (also known as External Balance)

External debt/GDP: [not available]

Economic resiliency: aa3

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 10 August 2021, a rating committee was called to discuss the rating of the Ireland, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's institutions and governance strength, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer's susceptibility to event risks has not materially changed.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

FACTORS THAT COULD LEAD TO AN UPGRADE

Moody's would consider upgrading Ireland's A2 sovereign ratings if the economy demonstrates continued resilience in the face of external risks emanating from the United Kingdom (Aa3 stable)-EU trading relationship and international corporate tax reform. Greater clarity that the debt burden will continue to fall steadily over the coming 1-2 years would also support upward pressure on the rating.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Given the positive outlook to the A2 ratings, a downgrade seems unlikely at this stage. However, Moody's would likely return the outlook to stable if the course of fiscal policy changed, resulting in debt stabilizing at higher levels. Although not Moody's core scenario, a material adverse impact of global corporate tax reform, post-Brexit trading arrangements or other external shocks on Ireland's growth and fiscal performance over a multiyear period would also exert negative pressures on the rating.

The principal methodology used in these ratings was Sovereign Ratings Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1158631. Alternatively, please see the Rating 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.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security 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 ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

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

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288435.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

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.

Sarah Carlson, CFA
Senior Vice President
Sovereign Risk Group
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Alejandro Olivo
MD-Sovereign/Sub Sovereign
Sovereign Risk Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 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.

Moodys.com