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”, 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 information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, 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.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             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.

 

4.             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.     

 

5.             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.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether 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 Poland's A2 ratings; maintains stable outlook

29 Apr 2022

Frankfurt am Main, April 29, 2022 -- Moody's Investors Service ("Moody's") has today affirmed the Government of Poland's A2 long-term senior unsecured and issuer ratings. Concurrently, the government's senior unsecured shelf and senior unsecured medium-term note (MTN) programme ratings have been affirmed at (P)A2 and the country's short-term issuer ratings have been affirmed at Prime-1 (P-1). The outlook remains stable.

Today's rating affirmation balances the following key drivers:

1) Efforts to enhance Poland's energy security as well as NATO security guarantees and troop presence, which mitigate an increase in geopolitical risks arising from Russia's military invasion of Ukraine, including Russia's decision this week to cut gas supplies to Poland;

2) Poland's economic resilience and still strong institutional and governance framework although the latter faces challenges from a gradually eroding rule-of-law situation;

3) Poland's strong debt affordability and favourable debt structure which allow to carry a higher debt burden and mitigate the fiscal challenges arising from the military conflict in Ukraine.

The stable outlook reflects Moody's view that despite Poland's heightened exposure to geopolitical event risk ? predominantly security risks ? and its expectation that these will remain elevated for a protracted time period, overall risks to Poland's credit profile are balanced. Poland's rating is resilient to Moody's updated baseline assumptions about the incremental credit risks brought on by the Russia-Ukraine military conflict, specifically a period of heightened geopolitical risk that ushers in higher inflation, lower growth, increased fiscal spending and higher government financing costs and currency volatility.

The rating would come under significant additional pressure in case of an outright military conflict involving NATO, a scenario that Moody's views as a very low probability, high severity shock that if crystalized would likely result in a multi-notch rating downgrade.

Poland's local- and foreign-currency country ceilings remain unchanged at Aa1. The four-notch gap between long-term issuer rating and local-currency ceiling is supported by Poland's reliable institutions and government actions ? notwithstanding judicial reforms that weaken the rule of law, moderate domestic political risks and limited external imbalances. Moreover, the government has a relatively limited footprint in the economy and financial system and its reliance on a single, common revenue source is very low. There is no gap between the foreign-currency and local-currency ceiling. In Moody's view, transfer and convertibility risks are low because of high policy effectiveness, moderate capital account openness and moderate external indebtedness.

RATINGS RATIONALE

RATIONALE FOR THE AFFIRMATION OF THE A2 RATINGS

ELEVATED GEOPOLITICAL RISKS, MITIGATED BY ENHANCED ENERGY SECURITY AND NATO SECURITY GUARANTEES

The first driver of the affirmation relates to the significant increase in Poland's exposure to geopolitical event risk, particularly security risk in light of Russia's military invasion of Ukraine. However, this is mitigated by Poland's membership in the European Union (EU, Aaa stable) and in NATO, as well as the presence of NATO troops in the country. Moody's views an outright military conflict involving NATO as a very low probability scenario. Although Poland is more likely to be subject to more unconventional or hybrid forms of attack, like cyberattacks, they are on their own much less likely to have a material negative impact on Poland's credit profile than conventional military attacks.

Poland has reduced its trade linkages with Russia since 2014, and is in the process of significantly reducing its energy exposure. In Moody's baseline scenario, which does not foresee a direct military conflict involving NATO, Poland would still report robust growth of around 3% on average in 2022 and 2023, and government debt would gradually decline from Moody's projection of 55.2% of GDP in 2022 over the coming years.

While Poland is dependent on Russia for its overall supply of oil and to a lesser extent gas and coal, the government had already planned to phase out its reliance on Russian gas by year-end 2022. Given relatively high gas storage levels at 76% of capacity, the prospective further increase in import capacity at the existing LNG terminal in Swinoujscie, as well as the connection to Norway through the new Baltic Pipe that will become operational from October 2022, Moody's views the impact from the announced stop of gas deliveries by Russia to Poland through the Yamal pipeline as limited.

In addition, the Polish government has announced significant steps to phase out reliance on Russian coal imports, and announced a draft law for an import ban of Russian coal already back in March. Rapidly and fully replacing such imports could still pose a challenge, but given that Russian hard coal supplies account for a relatively limited share of only about 15% of Poland's total coal consumption, the overall credit impact of any difficulties faced in swiftly replacing Russian supplies from other sources will be limited in Moody's view.

ECONOMIC RESILIENCE SUPPORTS POLAND'S CREDIT PROFILE

The second driver for the affirmation is based on Poland's significant economic resilience. Moody's estimates Poland's average real GDP growth of 3.4% over 2016-2025, which exceeds many of its regional and A-rated peers. Poland's strong growth performance is also less volatile than most peers and continued to narrow its income gap with the EU since the 1990s. Poland's GDP per capita (in purchasing power parity terms) was 85% of the EU-27 median in 2021, up from 49% in 1995.

Poland has also managed the economic shock from the coronavirus pandemic without economic scarring. The 2.2% real GDP contraction in 2020 was much lower than the EU average of 5.9%, mainly because of the favourable structure of the competitive Polish economy with a comparatively low dependence on exports and tourism.

The pandemic shock was also mitigated by a sizeable fiscal support package amounting to 13% of 2020 GDP as well as supportive monetary policy measures by the Narodowy Bank Polski (NBP), including a significant asset purchase program. Poland's real GDP grew by 5.9% in 2021 and reached its 2019 pre-pandemic level already again in 2021.

Notwithstanding the negative impact on growth from the military conflict in Ukraine, Moody's expects continued robust growth of around 3% on average during 2022 and 2023. The main channel to lower economic growth stems from high inflation rates which weigh on consumption, as well as the negative impact on business sentiment, which affects investment growth.

Demographic change poses the main challenge to Poland's potential growth, with estimates from the central bank and the IMF ranging between 2.5% and 3% over the medium-term, and which will benefit from strong investment and total factor productivity growth.

Poland's economic resilience is supported by its institutional strength, including sound macroeconomic management based on a credible and independent inflation targeting regime of the NBP and a robust and rule-base fiscal framework. However, Moody's observes with respect to Poland's institutions an elevated policy unpredictability. This assessment is particularly based on concerns with respect to the country's rule of law. More specifically, the government continues to pursue plans with respect to changes in the judicial system that started in 2015 and which risk to undermine the independence of the judiciary by weakening constitutional checks and balances.

In October 2021 Poland's constitutional court ruled that some EU laws are incompatible with the country's constitution. The EU asserts that a series of rule changes in Poland weaken judicial independence in violation of European law. Most recently the European Commission (EC) announced that it would start to withhold budget funding from Poland unless it settled fines related to two ongoing legal disputes. One set of fines relates to a European Court of Justice (ECJ) ruling from July 2021 that a disciplinary chamber in Poland's supreme court violated EU laws around judicial independence. The ECJ subsequently announced in late October 2021 that it was levying fines worth ?1 million per day after the government had failed to reverse the regime.

The Polish National Recovery and Resilience Plan (NRRP) has not been approved yet, and the abolishment of the Supreme Court Disciplinary Chamber and reinstatement of suspended judges are widely seen as pre-conditions for an approval of the plan and disbursement of funds.

STRONG DEBT AFFORDABILITY AND FAVORABLE DEBT STRUCTURE SUPPORT HIGHER DEBT BURDEN

The third driver of the affirmation is Poland's strong debt affordability which softens the negative impact of the significant increase of government debt on the country's fiscal strength. As a result of the fiscal response to the coronavirus pandemic Poland's general government debt increased to a peak of 57.1% of GDP in 2020 up by 11.5 percentage points from its 2019 level.

Despite a strong rise in government bond yields since late summer 2021, further driven by the NBP's monetary tightening, Poland's debt affordability indicators remain strong. Moody's forecasts Poland's interest payments-to-budgetary revenue of on average 3.4% over 2022-25 compared to an average of 4.4% between 2012 and 2021.

As most of the increase in debt was issued in local currency in 2020 and 2021, the structure of Poland's government debt has also improved further. The share of general government debt denominated in foreign currency decreased to 22.7% at the end of 2021 from 23.4% in 2020, and is now much lower than the 31.6% recorded on average between 2010 and 2019. The Polish authorities aim to keep the share of foreign-currency denominated debt in total State Treasury debt below 25%.

The very strong economic rebound in 2021 has given a boost to government revenues, and helped to reduce the debt burden to 53.8% of GDP. In light of government measures announced before the conflict, such as comprehensive changes to the tax system under the "Polish Deal", and assuming additional near-term and longer-term spending increases, such as for Ukrainian refugees and higher defence outlays, Moody's expects a stable debt-to-GDP ratio of 55% on average in 2022 and 2023, before gradually declining but staying above 50% until at least 2025.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that despite Poland's heightened exposure to geopolitical event risk, overall risks to Poland's credit profile are balanced. As explained above, despite lower growth forecasts than prior to the military conflict and the recently announced cut of gas supply from Russia, Moody's still projects continued robust performance in 2022 and 2023. The rating agency expects Poland's economy to remain resilient even in light of disruptions to Russian energy supply, that could also include oil and coal.

Poland has a long history of tense relations with Russia, and the Polish government has taken a very active stance in opposing the Russian invasion of Ukraine, also functioning as a key logistics hub for international arms shipments to Ukraine in the current conflict.

To date, there has been no indication of a conventional military attack or a significant cyber or hybrid attack targeted directly at Poland, but the presence of Russian troops in Belarus (Ca negative) and Russian missile strikes against Ukrainian targets close to the Polish border signals an increase in security risks. However, Poland's EU and NATO membership ? with NATO troops permanently stationed on its territory ? substantially reduces the risk of direct security threats having materially negative credit implications for Poland.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Poland's ESG Credit Impact Score is neutral-to-low (CIS-2), reflecting moderately negative exposure to environmental and social risks, and a strong governance profile that supports the rating and in general the country's capacity to respond to shocks.

Poland's overall E issuer profile score is moderately negative (E-3), reflecting low exposure to environmental risks across all categories except for carbon transition risks being moderately negative related to the reduction of the country's large share of coal in total energy supply over the medium-to-long term.

Moody's assesses Poland's S issuer profile score as moderately negative (S-3). Moody's views unfavorable demographic trends as highly negative. Comparatively fast changing population ageing poses a long-term risk on economic and fiscal metrics that will be partly softened by further increases in the participation rate. Moreover, Moody's views labour and income as being moderately negative related to disparities in unemployment and income levels among regions and between urban and rural areas contributing to societal divisions and political tensions. Moody's sees low exposure to social risks in the categories education, housing, health and safety as well as access to basic services.

Poland's strong institutions and governance profile supports its rating, and this is captured by a positive G issuer profile score (G-1). Poland has an overall strong institutional framework that balances improved institutional quality following Poland's accession to the EU and elevated policy unpredictability. In addition, Moody's observes that the Polish government has implemented reforms that weaken the independence of the judiciary. That said, the country benefits from a high fiscal policy effectiveness being supported by Poland's robust and rule-based fiscal framework as well a credible and independent monetary policy of the NBP.

GDP per capita (PPP basis, US$): 34,165 (2020 Actual) (also known as Per Capita Income)

Real GDP growth (% change): -2.2% (2020 Actual) (also known as GDP Growth)

Inflation Rate (HICP, % change Dec/Dec): 3.4% (2020 Actual)

Gen. Gov. Financial Balance/GDP: -6.9% (2020 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 2.9% (2020 Actual) (also known as External Balance)

External debt/GDP: 62.9% (2020 Actual)

Economic resiliency: a2

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

On 27 April 2022, a rating committee was called to discuss the rating of the Poland, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. 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 has become increasingly susceptible to event risks.

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

WHAT COULD CHANGE THE RATINGS UP

A faster than currently expected return to pre-crisis debt burden metrics combined with robust medium-term economic growth prospects would exert upward pressure on Poland's rating. Furthermore, in case the country's authorities would take measures to reverse the adverse changes made to the institutional framework related to the rule of law, leading to a normalization of the relationship with the EU would also be positive.

WHAT COULD CHANGE THE RATINGS DOWN

Moody's expects that political risk will remain more elevated for Poland for an extended period of time, with security risks potentially materializing on very short, if any, notice. While Moody's baseline scenario does not assume a military confrontation involving NATO, any military attack on Poland, as well as a cyber attack with significant impact would be followed by an immediate negative rating action. In such a scenario, that Moody's views as a very low risk, high severity shock, Poland's rating would come under significant additional pressure, likely resulting in a multi notch rating downgrade.

A substantial further deterioration with respect to the rule of law which would have a negative impact on the business location Poland and further intensification of the conflict with EU institutions would also be credit negative, as would be a significant deterioration in economic or fiscal strength.

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_1288235.

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.

Steffen Dyck
VP - Senior Credit Officer
Sovereign Risk Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main, 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Alejandro Olivo Villa
MD-Sovereign/Sub Sovereign
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main, 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2022 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 JPY100,000 to approximately JPY550,000,000.

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

Moodys.com