Moodys.com
Close
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 three Paraguayan banks, upgrades Banco Basa; changes Paraguay`s Macro profile to "Moderate -"

 The document has been translated in other languages

16 Apr 2019

New York, April 16, 2019 -- Moody's Investors Service ("Moody's") has today affirmed all supported ratings of Banco Continental S.A.E.C.A., Banco Regional S.A.E.C.A. and Banco Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay), following the affirmation of these banks' baseline credit assessments (BCAs). The ratings that were affirmed include all three banks' local and foreign currency long and short term deposit and counterparty risk ratings as well as Banco Regional's senior unsecured foreign currency debt rating of Ba1. The outlook on the ratings is stable. All three banks' baseline credit assessments and adjusted baseline credit assessments were also affirmed, along with their long and short term counterparty risk assessments. At the same time the rating agency upgraded Banco Basa S.A.`s long term ratings, stable outlook, and its assessments. The bank`s short term ratings were also affirmed.

Moody's today also raised its Macro Profile for Paraguay's banking system to "Moderate -", from "Weak +", to reflect the country's resilient economy, which has been growing steadily despite a regional slowdown in recent years, and its limited susceptibility to political risk.

The following ratings and assessments were affirmed:

Banco Continental S.A.E.C.A.:

- Long and short term local currency deposit ratings of Ba1, stable outlook and Not Prime,

- Long and short term foreign currency deposit rating of Ba2, stable outlook and Not Prime

- Long and short term local currency counterparty risk ratings of Ba1 and Not Prime

- Long and short term foreign currency counterparty risk ratings of Ba1 and Not Prime

- Adjusted baseline credit assessment of ba2

- Baseline credit assessment of ba2

- Long and short term counterparty risk assessments of Ba1 (cr) and Not Prime (cr)

Banco Regional S.A.E.C.A.:

- Long and short term local currency deposit ratings of Ba1, stable outlook and Not Prime,

- Long and short term foreign currency deposit rating of Ba2, stable outlook and Not Prime

- Senior Unsecured foreign currency debt rating of Ba1, stable outlook

- Long and short term local currency counterparty risk ratings of Ba1 and Not Prime

- Long and short term foreign currency counterparty risk ratings of Ba1 and Not Prime

- Adjusted baseline credit assessment of ba2

- Baseline credit assessment of ba2

- Long and short term counterparty risk assessments of Ba1 (cr) and Not Prime (cr)

Banco Bilbao Vizcaya Argentaria Paraguay S.A.:

- Long and short term local currency deposit ratings of Ba1, stable outlook and Not Prime,

- Long and short term foreign currency deposit rating of Ba2, stable outlook and Not Prime

- Long and short term local currency counterparty risk ratings of Baa3 and Prime-3

- Long and short term foreign currency counterparty risk ratings of Baa3 and Prime-3

- Adjusted baseline credit assessment of ba1

- Baseline credit assessment of ba2

- Long and short term counterparty risk assessments of Baa3(cr) and P-3(cr)

Banco Basa S.A.

- Short term local and foreign currency deposit ratings of Not Prime

- Short term local and foreign currency counterparty risk ratings of Not Prime

- Short term counterparty risk assessment of Not Prime (cr)

The following ratings and assessments were upgraded:

Banco Basa S.A.

- Long term local currency deposit ratings to Ba2 from Ba3, stable outlook from positive

- Long term foreign currency deposit rating to Ba2 from Ba3, stable outlook from positive

- Long term local currency counterparty risk ratings to Ba1 from Ba2

- Long term foreign currency counterparty risk ratings to Ba1 from Ba2

- Adjusted baseline credit assessment to ba3 from b1

- Baseline credit assessment to ba3 from b1

- Long term counterparty risk assessments to Ba1(cr) from Ba2(cr)

Outlook Actions:

..Issuer: Banco Basa S.A.

....Outlook, Changed To Stable From Positive

..Issuer: Banco Bilbao Vizcaya Argentaria Paraguay

....Outlook, Remains Stable

..Issuer: Banco Continental S.A.E.C.A.

....Outlook, Remains Stable

..Issuer: Banco Regional S.A.E.C.A.

....Outlook, Remains Stable

RATINGS RATIONALE

The affirmation of Banco Continental, Banco Regional and BBVA Paraguay's baseline credit assessments (BCA) incorporate their high levels of capitalization, stable deposit funding and high levels of liquidity. All three banks have universal franchises servicing mainly corporate and small and medium-sized enterprises lending segments and as of February 2019 Banco Continental and Banco Regional were the largest and second largest banks by loans, followed by BBVA Paraguay, ranked fourth. Together, these strengths help offset asset risk pressures from the banks' high exposure to the agricultural sector that have led to volatility in problem loan and restructured loan levels as well as the build-up of foreclosed assets on bank balance sheets. While the banks have traditionally reported strong profitability ratios, Moody's notes their lower than system level loan growth in 2018 in the context of increased competition for both loans and deposits in the Paraguayan banking system which compressed spreads. Competition will continue to pressure the bank`s bottom lines in 2019, while at the same time provisioning expenses for foreclosed assets will also be negative for profitability.

The upgrade in Banco Basa's BCA and supported ratings reflects its asset quality, stabilized capitalization and profitability as the bank has continued its expansion to become a significant universal banking operation in Paraguay.

BANCO CONTINENTAL

In affirming Continental's ba2 BCA, Moody's took into consideration its above peer capitalization levels sustained by its strong earnings generation as well as challenges to its asset risk. As measured by Moody's tangible common equity (TCE) to risk weighted assets (RWA), Continental's capitalization ratio of 16.5% was significantly higher than its peers and bolstered by its strong profitability as shown by net income to tangible assets of 2.3%. However, the bank's asset risk is still showing signs of weakness. While its 60 day problem loan ratio was 1.6% in 2018, refinanced and restructured loans rose to 3.2% of total loans and importantly foreclosed assets rose to 2.5% of total loans and represented 33% of total foreclosed assets in the Paraguayan banking system. The rating agency expects the bank's asset risk to remain stable at these levels and its historically high profitability to be pressured by additional provisioning costs, particularly from foreclosed assets. Moody's also noted in the rating action that the bank is the second largest deposit taker in Paraguay and deposits represented over 70% of total funding. Although the bank has a greater reliance on market funds than peers, it also held liquid assets equivalent to 25.4% of its tangible banking assets in December 2018 that gave ample coverage to market funding risk.

BANCO REGIONAL

The affirmation of Regional's ba2 BCA incorporates its recovering asset risk and adequate capitalization as shown by its TCE/RWA ratio of 11.8% as of December 2018, that together offset its weaker than peers profitability. Regional's operations are focused on lending to large agricultural corporations, which exposed its asset risk to deterioration between 2015-17 after the twin shocks of a currency devaluation and commodity price crash, which led to rising 60 day problem loan and restructured loan ratios. This trend has since reversed and in 2018, problems loans fell by 70 basis points to 1.5% and refinanced and restructured loans fell by 90 basis points to 5.5%. In addition, Regional's asset quality is supported by reserves that cover problem loans by 146%, as well as guarantees for over 50% of total loans. The bank`s levels of foreclosed assets fell down to 1.1% in 2018, half the level seen two years earlier. However, in 2018, Regional reported net income to tangible assets of 0.8%, its lowest level in four years, due to a combination of one off expenses and margin compression. Moody's expects Regional's profitability to continue to be pressured in 2019. Also incorporated in the rating action are Regional's predominant deposit funding, equivalent to 68% of total funding, and its access to dollar based funding sources and credit facilities, that buttress its liquidity.

BANCO BILBAO VIZCAYA ARGENTARIA PARAGUAY S.A.

In affirming BBVA Paraguay's ba2 BCA, Moody's highlighted its above-peers problem loan ratio, high capitalization levels and steady profitability metrics. As a result of its corporate and SME focused operation with concentration to the agricultural sector, BBVA's 60 day problem loan ratios jumped to 3.6% in 2016 and stayed high at 3.3% in 2018, significantly higher than the system's average of 2.4%. Although, the bank's TCE to RWA of 14.3% along with reserve coverage of over 100% serves to partially mitigate its elevated asset risk, the bank will likely continue to report higher than system problem loan ratios in 2019 . BBVA Paraguay also reported a net income to tangible assets ratio of 1.7% in 2018, in line with a year prior. With deposits accounting for almost 90% of its funding sources, BBVA Paraguay has a lower reliance on market funds than its peers, which is also backed by sufficient levels of liquid asset holdings.

BANCO BASA LONG TERM RATINGS AND ASSESSMENTS UPGRADED

The upgrade of Banco Basa's BCA to ba3, from b1, reflects its improving asset quality, stable capitalization and profitability as the bank has continued its expansion to become a universal banking operation in Paraguay.

Banco Basa has grown significantly over the last five years in line with its strategy to become a universal banking operation, predominantly serving corporates and small to mid-sized enterprises. Because of rapid growth, as evidenced by loans expanding 28% in 2018 versus prior year, the bank's 60 day problem loan ratio was 1.6%, 80 basis points below the system average of 2.4%. Restructured and refinanced loans accounted for only 0.6% of the portfolio, lower than the system as a whole, and the bank's reserve coverage also remains strong at 129% of problem loans. The build-up of foreclosed assets on its balance sheet has also been limited at only 0.6% of total loans. Banco Basa intends to continue growing its loan book at a pace above system levels in 2019 and 2020, although at a slower pace than in previous years, a positive development that will also support capitalization. However, problem loan formation at the bank has been inching up since 2016, as a result of its robust expansion and Moody`s expects the bank's asset risk to be pressured as its loan growth season. Moody's assessment of Basa's asset risk considers the risks associated with its rapid growth, concentration in risky sectors and the unseasoned nature of its loan portfolio.

Although volatile over the last few years, Banco Basa`s reported a TCE to RWA ratio of 12.5% in 2018, down from 14.5% as the bank grew in 2018. The bank`s profitability has also shown less volatility than in the past with Basa reporting net income to tangible assets of 2.5%, down from 3.4% a year earlier but well above the 0.8% reported in 2015. Along with other banks in the system, Moody's noted that although Banco Basa's net interest margin fell in 2018, the bank's bottom line also benefits from its foreign exchange fees, which are still subject to volatility. In addition, the bank has set up a new investment banking and fund management subsidiary company, Basa Capital S.A., which will add diversity to its earnings generation, helping it manage increases in provisioning expenses driven by the seasoning of the bank's loan book growth and ensuring robust profitability.

The ratings upgrade also considered Banco Basa's funding profile that has shown access to stable and inexpensive deposit funding which represented almost 72% of total funding as of 2018. In addition the bank held liquid assets equivalent to 23% of tangible banking assets, proving an ample buffer against more costly and less reliable market funds.

RATIONALE FOR MACRO PROFILE CHANGE

Moody's has today raised its Macro Profile for Paraguay's banking system to "Moderate -". This reflects Moody's decision to change its assessment of the country's economic strength to 'Moderate -' from 'Weak +' and its assessment of susceptibility to event risk to 'Low' from 'Moderate -.

Our 'Moderate (-)' assessment of Economic Strength reflects Paraguay's solid growth trends and limited GDP growth volatility, with wealth levels that are in line with peers, and ongoing positive developments in economic diversification that have taken advantage of the country's abundant hydroelectric energy and low tax burden. A rising share of value-added agricultural exports, public investment to upgrade infrastructure, and the development of a maquila industry serving Brazilian companies have all supported more stable economic growth in recent years. These factors are partially offset by Paraguay's relatively small economy, low scores on competitiveness indicators and the economy's small size. Paraguay's nominal GDP of around $39 billion in 2017 is smaller than the $50 billion Ba median, while GDP per capita (PPP basis) of $12,785 is in line with the $12,007 Ba median. The economy has grown at an average annual rate of 5.1% during the last five years, compared to 4.0% for Ba-rated peers, and is one of the fastest growing economies in Latin America.

The "Low" score for susceptibility to even risk stems from the country´s low score for political risk whereby we do not expect political events to materially impact credit metrics, lead to significant changes in economic policies, or impair the government's willingness or ability to service debt.

Paraguay`s level of financial intermediation remains moderate, and hence there is little risk of a credit bubble, despite returning loan growth in 2018. While banks continue to be heavily exposed to the performance of the agribusiness sector, growth in new industries is helping to reduce concentration risks. Additionally, financial dollarization remains high, but it poses limited risks to the banking system because foreign currency loans are generally extended only to naturally hedged borrowers.

In accordance with Moody's Banks rating methodology, the macroeconomic environment in which the bank operates. frames credit analysis. Moody's Macro Profile analysis for each country focuses on economic and institutional strength, susceptibility to event risk, credit conditions, funding conditions and the industry structure.

Moody's new report, entitled "Banking -- Paraguay: Macro Profile -- Moderate -" is available on www.moody.com. Moody's subscribers can access the report here, http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1170182

GOVERNMENT AND AFFILIATE SUPPORT

Banco Continental and Banco Regional's long-term global local currency deposit ratings of Ba1 derive from their BCAs of ba2 and incorporates one-notch uplift as a result of Moody's assessment of a high probability of government support to the bank in an event of stress, in light of their systemic importance to the Paraguayan banking system. Similarly, Banco Basa's long-term global local currency and foreign deposit ratings of Ba2 respectively incorporate a one-notch uplift as a result of Moody's assessment of support to the bank in an event of stress.

BBVA Paraguay's long-term global local currency deposit rating of Ba1 derives from the bank's standalone BCA of ba2 and incorporates a one-notch uplift as a result of our assessment of high affiliate support from its parent Banco Bilbao Vizcaya Argentaria S.A.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BANCO CONTINENTAL

Positive pressure on Continental' standalone BCA could derive from significant improvement in asset risk indicators, combined with more diversified loan book, and continued increases in capitalization levels. The bank ratings would be under stress if Continental suffered a substantial deterioration in its asset quality, capitalization or in its core earnings profile. In addition, a downgrade of the country´s deposit ceilings would affect its deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BANCO REGIONAL

Regional's standalone BCA could face positive pressure if the bank reports steady improvement of its financial metrics, particularly profitability and asset risk, while being able to achieve higher diversification and reducing sector concentration in its loan portfolio. Negative pressure could result from deterioration in asset quality or a further decline in profitability associated with higher provisions. Additionally, a potential downgrade of Paraguay's deposit ceilings would affect its deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BBVA PARAGUAY

Positive pressure on BBVA Paraguay´s BCA could result from a consistent improvement of asset quality, and profitability. The bank's BCA could become under stress if BBVA Paraguay faces substantial deterioration in asset quality. A recurring decline in profitability could also result in downward pressure on the BCA. A downgrade of Paraguay's deposit ceilings would affect its deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN -- BACO BASA

Continued upward pressure on Basa's rating could arise if the bank is able to improve asset quality and capitalization levels as its loan book seasons and growth moderates to system levels and profitability improves. While downward pressure is unlikely given the ratings upgrade, the outlook could become negative if asset quality deteriorates significantly and capital and earnings begin to exhibit volatility.

The principal methodology used in these ratings was Banks published in August 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

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

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Farooq Khan
AVP - Analyst
Financial Institutions Group
Moody's America Latina Ltda.
Avenida Nacoes Unidas, 12.551
16th Floor, Room 1601
Sao Paulo, SP 04578-903
Brazil
JOURNALISTS: 800 891 2518
Client Service: 1 212 553 1653

M. Celina Vansetti-Hutchins
MD - Banking
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

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.
© 2019 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 ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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 MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.

CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for 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