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 ratings of Saudi Banks; outlooks changed to negative

 The document has been translated in other languages

05 May 2020

Rating actions follow negative outlook on Saudi Arabia's government ratings

NOTE: On May 6, 2020, the press release was corrected as follows: The ninth paragraph of the Regulatory Disclosures section was added and color coded. Revised release follows.

Limassol, May 05, 2020 -- Moody's Investors Service, ("Moody's") has today affirmed all ratings and assessments of the 11 banks it rates in Saudi Arabia (A1 negative). At the same time, the rating agency changed the outlook on the long-term deposit ratings to negative from stable for ten of the banks and maintained the negative outlook on the long-term deposits of one bank.

The rating action follows Moody's decision to change the outlook to negative from stable on the Saudi Arabian government's A1 rating on 1 May 2020. For further information on the sovereign rating action, please refer to Moody's press release: Moody's changes the outlook on Saudi Arabia's rating to negative, affirms A1 rating (https://www.moodys.com/research/--PR_423521).

Details of the rationales for individual bank rating actions are provided later in this press release.

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL423631 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

RATING AFFIRMATIONS

Moody's decision to affirm the ratings of all 11 banks reflects the rating agency's view that the current ratings continue to reflect the resilience in their financial performance underpinned by strong capital buffers, favorable funding profiles and ample liquidity buffers. Rationales for the individual banks are provided later in this press release.

NEGATIVE OUTLOOK

The negative outlooks are driven, to a different extent, by a combination of the following 1) the potential weakening of the government's capacity to support the Saudi banks and this driver also applies to Banque Saudi Fransi whose long-term deposit ratings already carry a negative outlook; 2) the deteriorating operating environment faced by the country's banks and 3) idiosyncratic challenges for Saudi British Bank, Bank AlBilad, The Saudi Investment Bank and Banque Saudi Fransi where these challenges are largely related to one or more factors in their solvency profile.

1) POTENTIAL WEAKENING OF GOVERNMENT CAPACITY TO SUPPORT THE SAUDI BANKS

Moody's decision to change the outlook to negative from stable on ten of the banks long-term deposit ratings captures the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The outlook for the eleventh and final bank, Banque Saudi Fransi, has been negative since March 2020 and also incorporates the drivers arising from this rating action.

Moody's continues to incorporate a high/very high probability of government support for the ratings of Saudi banks driven by their government shareholdings, importance in the domestic banking and payment system and the track record of pre-emptive government support.

2) DETERIORATING OPERATING ENVIRONMENT

A secondary driver for the negative outlook is the weakening operating environment on the back of lower oil prices, reduced government spending and spread of coronavirus which, if prolonged, could lead Moody's to revise downwards its assessment of the operating environment, through a lower macro profile from its current level of moderate+.

Moody's expects that the Saudi government's spending cuts, announced in the 2020 budget, will weigh on the non-oil sector of the country's economy (forecast contraction of -4% for 2020 compared to 3.3% growth in 2019), where the banks do most of their business. At the same time, travel restrictions aimed at stemming the spread of the coronavirus are disrupting the tourism industry and particularly religious pilgrimages to Mecca and Medina. Moody's regards the coronavirus outbreak as a social risk under its environmental, social and governance (ESG) framework, given the substantial implications for public health and safety.

3) IDIOSYNCRATIC CHALLENGES FOR SOME OF THE BANKS

Finally, the Negative outlook for Saudi British Bank, Saudi Investment Bank, Banque Saudi Fransi, and Bank AlBilad also captures existing pressures on the banks' standalone credit profiles. Details for this are given in the bank specific sections below.

ISSUER-SPECIFIC RATING DRIVERS

National Commercial Bank (NCB)

The affirmation of National Commercial Bank's A1 long-term deposit ratings reflects the affirmation of the bank's baa1 Baseline Credit Assessment (BCA) and Moody's ongoing expectation of a very high probability of government support, leading to three notches of uplift from the BCA.

The affirmation of the bank's baa1 BCA reflects the bank's strong funding and liquidity, underpinned by its position as Saudi Arabia's largest bank. It also captures NCB's strong solvency, which includes robust capitalisation with tangible common equity/risk-weighted assets of 15.1% as at December 2019 and resilient profitability with net income of 2.2% of tangible banking assets as at December 2019.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Al Rajhi Bank (Al Rajhi)

The affirmation of Al Rajhi Bank's A1 long-term deposit ratings reflects the affirmation of the bank's a3 BCA and Moody's ongoing expectation of a very high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of Al Rajhi's a3 BCA reflects the bank's dominant Saudi retail franchise, which drives stable and low cost funding and high profitability with net income of 2.6% of tangible banking assets as at December 2019. It also captures the bank's solid asset quality, strong capital with tangible common equity/risk-weighted assets of 18.5% as at December 2019 and healthy liquidity buffers.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Riyad Bank

The affirmation of Riyad Bank's A2 long-term deposit ratings reflects the affirmation of the bank's baa1 BCA and Moody's ongoing expectation of a very high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of the bank's baa1 BCA reflects its strong capital base, with tangible common equity/risk-weighted assets of 15.5% as at December 2019, stable deposit-based funding, and resilient profitability, with a net income at 2.1% of tangible banking assets in 2019, supported by the bank's solid franchise in multiple business lines.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Saudi British Bank (SABB)

The affirmation of SABB's A1 long-term deposit ratings reflects the affirmation of the bank's a3 BCA and Moody's ongoing expectation of a very high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of SABB's a3 BCA reflects the bank's stable funding and sound liquidity with liquid assets representing 32% of tangible banking assets. It also reflects the bank's strong capitalisation with tangible common equity/risk-weighted assets of 17.7% as at December 2019, as well as solid profitability and efficiency which are supported by a well-established corporate bank franchise.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

The negative outlook on SABB's long-term deposit ratings also captures the sustained pressure on the bank's asset quality with nonperforming loans increasing to 4.9% (4.4% excluding loans performing but subject to curing period) as at December 2019 compared to 3.3% in 2018, reflective of the difficult operating environment and the acquisition of Alawwal Bank's loan portfolio following the merger of the two banks in June 2019.

Samba Financial Group (SAMBA)

The affirmation of SAMBA's A1 long-term deposit ratings reflects the affirmation of the bank's a2 BCA and Moody's ongoing expectation of a very high probability of government support, leading to one notch of uplift from the BCA.

The affirmation of the bank's a2 BCA reflects its solid funding and liquidity, with liquid assets representing 35% of tangible banking assets as at December 2019; and strong solvency, with high capital buffers (tangible common equity around 18.5% of tangible assets as at December 2019). The affirmation also acknowledges the recent weakening in the bank's asset quality and recurring profitability, due to higher loan-loss provisions in 2019.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Arab National Bank (ANB)

The affirmation of ANB's A2 long-term deposit ratings reflects the affirmation of the bank's baa1 BCA and Moody's ongoing expectation of a very high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of the bank's baa1 BCA reflects the bank's strong overall solvency, supported by robust capitalisation (with a tangible common equity/ risk-weighted-assets of 16.45% as at December 2019), stable deposit-based funding and solid liquidity, supported by its well-established and defensible franchise.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Banque Saudi Fransi (BSF)

The affirmation of BSF's A1 long-term deposit ratings reflects the affirmation of the bank's a3 BCA and Moody's ongoing expectation of a very high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of BSF's a3 BCA reflects the bank's solid profitability with a net income of 1.8% of tangible banking assets as at December 2019, derived from a well-established corporate banking franchise, which also supports its sound capitalisation with a tangible common equity/ risk-weighted-assets of 17.15% as at December 2019. The affirmation also reflects the bank's deposit-funded profile and adequate liquidity.

The negative outlook on the long-term deposit ratings, originally changed from stable in March 2020, captures existing pressures on the bank's solvency, particularly asset quality, with nonperforming loans at 3% of total loans, as well as declining liquidity buffers, with liquid assets dropping to 23% of tangible banking assets as at December 2019 compared to 32% in 2018.

The negative outlook is also driven now by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

The Saudi Investment Bank (SAIB)

The affirmation of SAIB's A3 long-term deposit ratings reflects the affirmation of the bank's baa2 BCA and Moody's ongoing expectation of a high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of the bank's baa2 BCA reflects the bank's stable deposit-funded profile, supported by its established, although small, corporate banking franchise, strong liquidity, with liquid banking assets/ tangible banking assets at 39% as at December 2019 and solid capitalisation, with tangible common equity/tangible assets of 13.2% as at December 2019.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

The negative outlook also takes into account SAIB's weakening asset quality, with problem loans rising to 5.65% as at December 2019 from 4.4% as at year-end 2018, leading to higher loan loss provisions and a drop in profit during 2019 with pre-tax income falling to SAR244 million in 2019, compared with SAR1,349 million in the prior year.

Bank Al-Jazira

The affirmation of Bank Al-Jazira's Baa1 long-term deposit ratings reflects the affirmation of the bank's baa3 BCA and Moody's ongoing expectation of a high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of the bank's baa3 BCA reflects its small but growing Islamic banking franchise, serving a growing market segment. It also captures the bank's improved capitalisation with tangible common equity/risk-weighted assets of 18.1% as at December 2019, sound liquidity with liquid assets representing 34% of tangible banking assets, and stable deposit-funded profile.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

Bank AlBilad

The affirmation of Bank AlBilad's A3 long-term deposit ratings reflects the affirmation of the bank's baa2 BCA and Moody's ongoing expectation of a high probability of government support, leading to two notches of uplift from the BCA.

The affirmation of the bank's baa2 BCA ratings reflects its young and growing Islamic banking franchise, supported by a strong remittance business in the Saudi Arabia. The affirmation also reflects the strong asset quality with nonperforming financings at 1.2% of total loans as well as the bank's stable deposit-funded profile and high level of liquid assets, representing 25% of tangible banking assets as at December 2019.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

The negative outlook also captures Bank AlBilad's weakening capital buffers amid fast loan growth and dividend payout with tangible common equity/risk-weighted assets the lowest in the Saudi banking system at 12.4% as at December 2019.

Gulf International Bank -- Saudi Arabia (GIB KSA)

The affirmation of GIB KSA's Baa1 long-term deposit ratings reflects (1) the affirmation of the bank's ba3 BCA; (2) one notch of uplift based on our assumption of a very high likelihood of affiliate support from its parent, Gulf International Bank BSC (GIB, Baa1 negative, ba2) in Bahrain; and (3) and Moody's ongoing expectation of a very high probability of government support, leading to an additional four notches of uplift from the Adjusted BCA.

The affirmation of the bank's ba3 BCA reflects the bank's strong capitalisation with tangible common equity/risk-weighted assets at 29% as at December 2019 and sound liquidity buffers with liquid assets representing 30% of tangible banking assets. It also acknowledge the bank's weak asset quality and profitability.

The negative outlook is driven primarily by the potential weakening capacity of the government of Saudi Arabia to provide support in case of need, as implied by the negative outlook on the A1 government issuer rating. The negative outlook also reflects the potential impact on the bank's financial fundamentals of the deteriorating operating environment in Saudi Arabia.

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

Given the negative outlook, any upgrade to the banks' ratings is unlikely in the near future. The outlook on the long-term deposit ratings could be moved back to stable if the sovereign's outlook moves back to stable and Moody's assesses that the risks in the operating environment remain broadly stable.

In addition to the above, prior to a stable outlook for Saudi British Bank, The Saudi Investment Bank, Banque Saudi Fransi, and Bank AlBilad the rating agency will also expect to see, to varying degrees, improvements in one or more financial metrics of the banks' including asset quality, profitability, liquidity and capital buffers.

The ratings of the banks could be downgraded if the sovereign rating is downgraded, indicating a lower government capacity to provide support and/ or Moody's sees or expects to see a deterioration in the operating environment that would lead it to lower Saudi Arabia's macro profile.

For SABB, the ratings would be also downgraded if the rating agency continues to see sustained pressure on asset quality. For Bank AlBilad, the ratings would be also downgraded if the agency continues to see sustained pressure on capital buffers. For BSF, the ratings would be also downgraded if the agency continues to see sustained pressure on the bank's asset quality and liquidity buffers. For SAIB, the ratings would be also downgraded if the agency continues to see sustained pressure on the bank's profitability and asset quality.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The local market analyst for Al Rajhi Bank, Bank Al-Jazira, Bank AlBilad, Banque Saudi Fransi, Gulf International Bank - Saudi Arabia, National Commercial Bank and Saudi British Bank ratings is Ashraf Madani, +971 (423) 795-42.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings announced here are a mix of solicited and unsolicited credit ratings. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL423631 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

• Rating Solicitation

• Issuer Participation

• Participation: Access to Management

• Participation: Access to Internal Documents

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.

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 action(s) announced and described above.

Items color coded in purple in this Press Release relate to unsolicited ratings for a rated entity which is non-participating.

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.

Christos Theofilou, CFA
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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

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

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S 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 INVESTORS SERVICE 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 MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE 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 $2,700,000. 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 JPY250,000,000.

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

​​​​​​​​
Moodys.com