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 Nigeria's B2 ratings, maintains negative outlook

15 Apr 2020

New York, April 15, 2020 -- Moody's Investors Service ("Moody's") has today affirmed Nigeria's B2 long-term issuer ratings and senior unsecured rating and its (P)B2 senior unsecured MTN programme rating and maintained the negative outlook.

The negative outlook continues to reflect the material downside risks to Nigeria's creditworthiness identified when the outlook on the sovereign's rating was changed to negative in December 2019. However, those risks have increased since then, exacerbated by the oil price shock and the financial and economic implications of the coronavirus outbreak. The rapid and widening spread of the outbreak and related price shocks are creating an unprecedented credit shock across a wide range of regions and markets. For Nigeria, these shocks amplify existing credit vulnerabilities both over the immediate and longer term. In the near term, the significant drop in oil revenues will reduce an already extremely low tax base, undermining fiscal strength. Combined with possible capital outflows, pressure on the fragile balance of payments may intensify, threatening external stability. In the longer term, the impact of the coronavirus on growth, particularly in the large informal sector, may weaken economic strength. The sovereign's very low institutions and governance strength is likely to constrain the effectiveness of government measures to buffer the impact of the economic and financial shock.

The risk of such stresses materializing is rising, and while the negative outlook also encompasses longer-term challenges, downward pressure may materialize relatively early on in the outlook horizon. While not Moody's current expectation, indications that the government was contemplating participation in broader debt relief initiatives with negative consequences for private sector creditors would be negative for the rating.

Set against these rising pressures, Moody's affirmation of Nigeria's B2 ratings also takes into account the government's relatively low debt burden in relation to GDP and commensurately low annual borrowing requirements, its low external debt service needs over the next few years and the capacity of the large banking sector to absorb more government debt. These credit features lower the probability of imminent and severe liquidity or balance of payments stresses relative to some 'B'-rated peers.

Nigeria's country risk ceilings remain unchanged at their current levels: the foreign-currency bond ceiling at B1, the foreign-currency deposit ceiling at B3, and the local-currency bond and deposit ceilings at Ba1.

RATINGS RATIONALE

RATIONALE FOR MAINTAINING THE NEGATIVE OUTLOOK

As a result of the oil price fall in the face of depressed oil demand and a slow supply response, Moody's now assumes that oil prices will average US$40-45 per barrel in 2020, and US$50-55 by 2021, around $20 and $10 below previous expectations in each year. Risks to that forecast are firmly to the downside. Beyond 2021, Moody's currently assumes that oil prices will return in a medium-term range of $50-70 per barrel, as demand recovers and supply adjusts further.

As a large oil exporter, Nigeria heavily relies on the oil sector which accounts for around 50% of government revenues and more than 80% of merchandise exports proceeds. Lower oil prices in the next two years will weaken Nigeria's credit profile by negatively affecting the government's public finances and the country's external position, exacerbating the near- and longer-term downside risks to the B2 rating already identified when the outlook on the sovereign's rating was changed to negative in December 2019.

While the fiscal and external implications of the coronavirus outbreak manifest immediately, in the current environment the downside risks to Nigeria's rating also relate to the longer-term implications for the sovereign's economic strength, should the economy not recover fully once the epidemic subsides.

FISCAL AND EXTERNAL WEAKNESSES EXACERBATED BY CORONAVIRUS-RELATED OIL PRICE AND FINANCING SHOCK

Nigeria's public finances are increasingly fragile. Given the already extremely low government revenue base (at around 8% of GDP pre-shock), the significant loss of oil-related fiscal revenue will exacerbate the persistent fiscal deficits and raise the debt burden.

At unchanged oil production levels (between 2.0 and 2.2 million barrels per day including condensates), Moody's estimates that a $10/barrel decrease in oil price leads to a $3-$3.5 billion loss in government revenue (around 0.7% of 2019 GDP or close to 10% of general government revenues). Additionally, coronavirus-related spending to prevent its spread throughout the country is expected to further widen the fiscal deficit.

While in relation to GDP, Nigeria's fiscal and liquidity metrics are not weaker than seen for other B2-rated sovereigns, very low revenue magnifies the impact of the oil proceeds shortfall on Nigeria's challenges to finance essential expenditure and service its debt. Moody's expects the deficit and government's borrowing requirements to widen by around 1% of GDP this year compared to its pre-shock projections, to around 5% and 8.5% respectively. Meanwhile, as a ratio to revenue, the general government's debt burden will rise by around 120 percentage points to about 430%, with interest payments absorbing more than 30% of revenue compared with around 20% previously expected.

On the external side, vulnerability relates to the expected widening in the current account deficit and to possible capital outflows in light of Nigeria's significant reliance on foreign investors to fund the country's foreign exchange reserves.

The current account, which turned into a substantial deficit estimated at 3.6% of GDP or $17 billion in 2019, will deteriorate further adding pressure on declining foreign exchange reserves. Taking into account a probable slowdown in imports as GDP growth falls, Moody's estimates that the current account balance will move to a deficit of more than 5% of GDP this year. Although Nigeria's foreign exchange reserves are currently adequate to cover imports and external debt payments, they are vulnerable to a deterioration in investor sentiment. Indeed, foreign portfolio investors' holdings of central bank certificates are significant, amounting to an estimated $12.5-15 billion at the end of 2019. With the widening current account deficit, a further decline in reserves (from $35 billion at the end of March 2020 and $38.6 billion at the end of last year) could exacerbate foreign capital outflows, which in turn would accelerate the decline in reserves.

LONGER-TERM DOWNSIDE RISKS TO ECONOMIC STRENGTH

Over the longer term, the fiscal and external vulnerability risks mentioned above combine with the risk that a largely informal economy is more deeply and negatively affected by the coronavirus outbreak than Moody's currently assumes. This could undermine the economic strength provided by a large and diversified economy supported by vast oil and gas endowments.

Consistent with Moody's global assumptions, the rating agency projects Nigeria's GDP growth to start rising again next year, from a contraction in 2020, as global economic activity resumes more normally, oil prices rise and domestic containment measures are lifted. However, there is a risk that Nigeria's majority of very low-income households face a longer-lasting negative shock if the informal sources of revenue that they rely on do not recover. Rising dollar scarcity in the economy may also constrain real GDP growth to a greater and longer extent than Moody's currently assumes.

RATIONALE FOR AFFIRMING NIGERIA'S B2 RATINGS

Moody's decision to affirm the rating at B2 balances features which exacerbate these increasingly acute financing and growth pressures, and others which mitigate them.

On the negative side, the B2 rating reflects the significant credit constraints arising from Nigeria's weak institutions and governance, that are likely to impede an effective response by the government to the economic and financial shock.

Set against that are credit features which lower the probability of imminent and severe liquidity or balance of payments stresses relative to regional and rating peers facing similar pressures from the spread of the coronavirus and the oil price shock. In particular, Nigeria benefits from a relatively low public debt stock as a share of GDP, commensurately low annual borrowing requirements and long external debt maturities that lower external debt service needs over the next few years. It also possesses a deep domestic capital market and a large banking sector with capacity to absorb more government debt.

Despite rapid debt accumulation since 2015, to an estimated NGN34.2 trillion (23.5% of GDP) in 2019 from NGN12.6 trillion (or 13.2%) in 2015, the government's debt burden measured in relation to the whole economy's sources of revenue (GDP) remains relatively moderate compared to peers. The government's annual financing needs are similarly moderate at around 8% of GDP -- though its weak ability to raise revenue magnifies the challenge posed by any refinancing needs somewhat.

The domestic capital market is likely to be able to absorb higher borrowing needs by the government at moderate costs given the current relatively low exposure of the banking system to government securities (estimated at 12% of banking assets at the end of 2018). Moreover, as has been the case in the last three years, the government is likely to continue to rely on central bank financing under an existing overdraft facility.

The government's external debt amounts to only 6% of GDP with an average maturity exceeding 14 years, and the depth of its domestic capital market has allowed the government to also issue domestic debt at relatively long maturities (more than 7 years on average), which lowers its financing needs. Moreover, slightly more than half of government external debt is on concessional terms, with almost half owed to multilateral development banks. Overall, Nigeria's external debt service (principal and interest) is small, around $2-2.5 billion (0.5% of GDP) per year in the next five years. Looking across the broader economy, the country's External Vulnerability Indicator is well below 100% and is expected to remain so, indicating adequate coverage by reserves of near-term economy-wide maturities.

Together, these features provide some assurance that Nigeria has the finances and the access to supportive funding needed to weather the current storm and support the B2 rating.

Moreover, while the government's capacity to mitigate the shock will be severely tested, the authorities have taken some measures that will limit the more immediate risks. They have started to adjust the official exchange rate and the import-export window, announced a supplementary budget law based on a $30 dollar per barrel oil price (instead of the current $57), phased out oil subsidies and called for $7.2 billion in financial support from international financial institutions including the World Bank, the IMF and the African Development Bank (Aaa stable).

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Environmental considerations are not material for Nigeria's rating. As an oil producer and exporter, Nigeria's environmental risks derive from carbon transition. Nigeria's credit profile would face downward pressure in a scenario of rapid global transition to lower reliance on hydrocarbons that would depress global hydrocarbon demand and prices. However, in light of the measures against climate change taken so far, this is not Moody's baseline.

Social considerations are material for Nigeria's credit profile given the country's very low average income levels and high levels of poverty. Nigeria ranked 157 out of 189 countries in the 2018 UN's Human Development Index, with particularly low rankings (last decile) in infant mortality rate and measures of inequality in income, education and health. Despite vast natural resources wealth, more than half the population lives on less than PPP$1.9 a day. Prolonged and intense social unrest in protest against living conditions could have a marked negative impact on growth, government finances and foreign investors' willingness to purchase Nigerian assets, threatening the country's external position. More immediately, Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. As explained above, the direct and indirect credit implications of the health shock are material for Nigeria.

Governance considerations are material to Nigeria's credit profile and are a driver of this action. Moody's assessment of Nigeria's institutions and governance strength is very weak at "caa3". Institutional capacities remain limited and the management of public resources remains opaque and lacking in effectiveness.

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

An upgrade is unlikely in the short to medium term given the negative outlook. A return to a stable outlook would likely be prompted by the implementation of a credible fiscal and economic policy response from the government that mitigated the immediate fiscal and external vulnerability risks, and limited the long-term negative economic and social implications of the coronavirus outbreak.

Moody's would downgrade the rating if it were to conclude that Nigeria's government was unlikely to be able to alleviate the damage to its revenues and its balance sheet, and the subsequent rise in liquidity and external risk. Downside risks could escalate rapidly in the event of further downward pressure on oil prices that deepened and lengthened the revenue shock for the government and/or an intensification of capital outflows that jeopardized macroeconomic stability. While not Moody's current expectation, indications that the government was contemplating participation in broader debt relief initiatives with negative consequences for private sector creditors would be negative for the rating.

Over the longer-term, increasing clarity that Nigeria's economic strength has been durably weakened by the impact of the coronavirus outbreak on the economy and society beyond Moody's current assessment would also place downward pressure on the rating.

GDP per capita (PPP basis, US$): 5,967 (2018 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 1.9% (2018 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 11.4% (2018 Actual)

Gen. Gov. Financial Balance/GDP: -4.5% (2018 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 1.3% (2018 Actual) (also known as External Balance)

External debt/GDP: 11.2% (2018 Actual)

Economic resiliency: b2

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

On 09 April 2020, a rating committee was called to discuss the rating of the Nigeria, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially decreased. Other views raised included: 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.

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.

The local market analyst for this rating is Aurelien Mali, +971 (423) 795-37.

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 https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

At least one ESG consideration was material to the credit rating outcome announced and described above.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU 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.

Samar Maziad
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Marie Diron
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

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