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 assigns Counterparty Risk Ratings to 10 Philippine banks

19 Jun 2018

Singapore, June 19, 2018 -- Moody's Investors Service has today assigned Counterparty Risk Ratings (CRRs) to 10 banks in the Philippines (Baa2 stable).

The 10 Philippine banks comprise: 1) Bank of the Philippine Islands (BPI), 2) BDO Unibank, Inc. (BDO), 3) China Banking Corporation (China Bank), 4) Land Bank of the Philippines (LBP), 5) Metropolitan Bank & Trust Company (MBT), 6) Philippine National Bank (PNB), 7) Rizal Commercial Banking Corporation (RCBC), 8) Security Bank Corporation (Security Bank), 9) Union Bank of the Philippines (Unionbank), and 10) United Coconut Planters Bank (UCPB).

Moody's Counterparty Risk Ratings are opinions of the ability of entities to honor the uncollateralized portion of non-debt counterparty financial liabilities (CRR liabilities) and also reflect the expected financial losses in the event such liabilities are not honored. CRR liabilities typically relate to transactions with unrelated parties. Examples of CRR liabilities include the uncollateralized portion of payables arising from derivatives transactions and the uncollateralized portion of liabilities under sale and repurchase agreements. CRRs are not applicable to funding commitments or other obligations associated with covered bonds, letters of credit, guarantees, servicer and trustee obligations, and other similar obligations that arise from a bank performing its essential operating functions.

For a full list of assigned CRRs, please refer to the end of this press release.

RATINGS RATIONALE

The CRRs assigned to the 10 banks are in line with the Counterparty Risk Assessments (CRA) already assigned to the same banks.

Because Moody's considers that the Philippines does not have an operational resolution regime, in assigning CRRs to the Philippine banks subject to this rating action, Moody's applies its basic Loss Given Failure (LGF) approach. Moody's basic LGF analysis positions CRRs in line with a bank's CRA, one notch above its adjusted BCA, prior to government support.

The CRR also incorporates zero to two notches of uplifts due to Moody's assessment of government support for the 10 banks in times of need, based on the banks' systemic importance in the Philippines. The uplifts are in line with those applied to the CRA.

OUTLOOK

CRRs do not carry outlooks.

BPI — WHAT COULD CHANGE THE RATING UP

BPI's deposit rating of Baa2 is at the same level as the sovereign rating of the Philippines. It is unlikely for BPI to be rated above the sovereign, because Moody's views the correlation of risk between the bank and the sovereign as high.

If the sovereign is upgraded, the following factors could result in an upward revision of the bank's BCA and ratings: (1) a consistent reduction in the bank's NPA; nonperforming loans (NPL) and foreclosed assets; (2) a steady improvement in the bank's profitability levels, as reflected by improvements in core earnings and reductions in credit costs; or (3) higher levels of loss-absorption capacity, as reflected by steady improvements in the bank's capitalization.

BPI — WHAT COULD CHANGE THE RATING DOWN

Moody's could lower BPI's BCA if: (1) aggressive organic expansion or acquisitions result in a significant increase in the bank's risk profile; (2) the operating environment weakens significantly or underwriting practices loosen, resulting in a steady increase in NPAs, which in turn erode loss-absorbing buffers; or (3) there is a material decline in the bank's capital buffers, as a result of strong balance-sheet growth or credit losses.

BDO — WHAT COULD CHANGE THE RATING UP

It is unlikely that BDO will be rated above the sovereign because there is a high degree of risk correlation between the bank and the sovereign.

If Moody's upgrades the sovereign's rating, the following factors could result in an upward revision of BDO's ratings and BCA: (1) the bank manages its growth, while maintaining stable asset quality; (2) the bank maintains its profitability levels, as reflected in its core earnings and credit costs; or (3) the bank demonstrates a stable loss-absorption capacity, as reflected in its loan-loss reserves and capitalization profile.

BDO — WHAT COULD CHANGE THE RATING DOWN

BDO's BCA and, consequently its ratings, could be lowered if: (1) it demonstrates aggressive organic expansion, or its acquisitions result in a significant increase in its risk profile; (2) the bank's operating environment weakens significantly or its underwriting practices loosen, resulting in a steady increase in its NPAs that erode in turn its loss-absorbing buffers; or (3) the bank's capital buffers fall materially, such that its Tier 1 ratio falls below 10%.

CHINA BANK — WHAT COULD CHANGE THE RATING UP

An upward revision of China Bank's BCA would likely lead to an upgrade of its ratings, assuming that the bank's credit metrics remain robust. The following factors could result in an upward revision of the BCA: (1) The bank's proven ability to maintain low levels of NPAs (NPLs and foreclosed assets) and keep credit costs low; (2) its ability to reduce large-borrower concentration risk; or (3) a proven ability to diversify funding sources and reduce its dependence on high-cost corporate deposits.

CHINA BANK — WHAT COULD CHANGE THE RATING DOWN

China Bank's BCA, and consequently its ratings, could be lowered because of the following factors: (1) aggressive organic expansion or acquisitions that result in a significant increase in the bank's risk profile; (2) a significant weakening in the bank's operating environment or if its underwriting practices become lax, resulting in a significant increase in NPAs; (3) the bank's large-borrower concentration risk increases significantly; (4) China Bank's reliance on corporate deposits creates significant refinancing risks or liquidity issues; or (5) Moody's lowers the Macro Profile for the Philippines. The Macro Profile is a rating input used to determine a bank's BCA and is designed to capture systemwide factors that are predictive of a bank's propensity to fail.

LBP — WHAT COULD CHANGE THE RATING UP

LBP's deposit ratings of Baa2 are at the same level as the Philippines' sovereign rating. It is unlikely for the bank's deposit ratings to be positioned higher than the sovereign rating, given the high correlation of credit risk between the bank and the sovereign. Assuming LBP's credit metrics remain robust, an upgrade of the sovereign rating would likely lead to an upgrade of the bank's deposit ratings.

The following factors could result in an upward revision of LBP's BCA: (1) improvements in the timeliness and transparency of the bank's financial reporting; or (2) significantly lower credit risk concentration in individual borrowers and industry groups.

LBP — WHAT COULD CHANGE THE RATING DOWN

LBP's BCA, and consequently its ratings, could be downgraded if: (1) the operating environment weakens significantly or underwriting practices become loose, resulting in a considerable deterioration in the bank's asset quality; (2) the bank's NPLs rise without a corresponding increase in loan-loss provisions; or (3) its capital buffer declines materially as a result of balance sheet or credit losses.

MBT — WHAT COULD CHANGE THE RATING UP

MBT's deposit rating of Baa2 is at the same level as the Philippines' sovereign rating. It is unlikely that MBT's ratings will be higher than that of the sovereign, given the high correlation of risks between the bank and the sovereign.

An upgrade of the sovereign rating would likely lead to an upgrade of the bank's deposit rating, assuming the bank's credit metrics remain robust.

If the sovereign is upgraded, the following factors could result in an upward revision of the bank's BCA: (1) a consistent reduction in the bank's NPAs, as represented by NPLs and foreclosed assets; (2) steady improvements in profitability levels, as reflected by improvements in core earnings and reductions in credit costs; and/or (3) higher levels of loss-absorption capacity, as reflected by steady improvements in its capitalization profile.

MBTs subordinated debt rating is linked to its BCA. Moody's could upgrade this rating if it raises the bank's BCA.

MBT — WHAT COULD CHANGE THE RATING DOWN

MBT's BCA could be lowered if: (1) the bank demonstrates aggressive organic expansion or acquisitions, resulting in a significant increase in its risk profile; (2) its operating environment deteriorates significantly or underwriting practices loosen, resulting in a steady increase in NPAs; thereby eroding the bank's loss-absorbing buffers; and/or (3) the bank shows a material decline in its capital buffers, as a result of strong balance-sheet growth or credit losses.

PNB — WHAT COULD CHANGE THE RATING UP

PNB's deposit rating of Baa2 is at the same level as the Philippines' sovereign rating. It is unlikely that PNB will be rated above the sovereign, because of the high correlation of risk between the bank and the sovereign.

The following factors could result in an upward revision of PNB's BCA: (1) a proven ability to maintain its asset quality metrics and its loss absorption buffers (capital and loan loss reserves), and (2) evidence that the bank can improve cost efficiency and its risk-adjusted profitability on a sustained basis.

PNB — WHAT COULD CHANGE THE RATING DOWN

PNB's BCA and consequently its ratings could be lowered if: (1) aggressive expansion or acquisitions result in a significant increase in its risk profile; (2) its underwriting practices become lax, resulting in a significant increase in nonperforming assets (NPA); (3) its capital buffers fall materially; (4) the operating environment for banks in the Philippines deteriorates, as reflected by a slowdown in the country's economic growth or a rapid increase in leverage and/or a deterioration in the funding and liquidity conditions for the banking system.

A downgrade of the Philippines' sovereign rating will also result in a downgrade of the bank's ratings.

RCBC — WHAT COULD CHANGE THE RATING UP

RCBC's deposit and debt ratings of Baa2 are at the same level as the Philippines' sovereign rating. It is unlikely that RCBC will be rated above the sovereign, because of the high correlation of risk between the bank and the sovereign.

The following factors could result in an upward revision of the bank's BCA: (1) its proven ability to maintain asset quality metrics; (2) its ability to maintain capitalization levels and loan loss reserves in line with that of its domestic peers; and (3) evidence that the bank can continue to reduce its credit costs and improve risk-adjusted profitability to support capital generation.

RCBC — WHAT COULD CHANGE THE RATING DOWN

RCBC's BCA and consequently its ratings could be lowered if: (1) aggressive expansion or acquisitions lead to a significant increase in the bank's risk profile; (2) its operating environment weakens significantly or underwriting practices become lax, resulting in a significant increase in NPAs; (3) its capital buffers fall materially; (4) the operating environment for banks in the Philippines deteriorates, as reflected by a slowdown in the country's economic growth or a rapid increase in leverage and/or a deterioration in the funding and liquidity conditions for the banking system.

SECURITY BANK — WHAT COULD CHANGE THE RATING UP

Security Bank's deposit rating of Baa2 is at the same level as the Philippines' sovereign rating. It is unlikely that the bank's ratings will be higher than the sovereign's rating because Moody's views the correlation of risk between the bank and the sovereign as high.

If the sovereign's rating or the bank's BCA (or both) is upgraded, Security Bank's ratings could be upgraded.

The following factors could result in an upgrade of the bank's BCA: (1) a proven ability to maintain low levels of NPAs (NPLs and foreclosed assets) and keep credit costs low; (2) evidence that the bank can increase the contribution of its core commercial banking businesses to its overall profitability; and (3) higher loss-absorption capacity.

SECURITY BANK — WHAT COULD CHANGE THE RATING DOWN

Security Bank's BCA and consequently its ratings could be lowered if the following factors occur: (1) the bank undertakes aggressive organic expansion or acquisitions in unfamiliar markets, resulting in a significant increase in its asset risks; (2) the bank's operating environment weakens significantly or underwriting practices become lax, resulting in a significant increase in NPAs; (3) the bank's capital buffers or core profitability deteriorate materially; (4) the bank's reliance on market funds creates significant refinancing risks or liquidity issues; or (5) Moody's lowers the Macro Profile for the Philippines. The Macro Profile is a rating input used to determine a bank's BCA, and it is designed to capture system-wide factors that are predictive of the propensity of banks to fail.

UNIONBANK — WHAT COULD CHANGE THE RATING UP

UnionBank's deposit rating of Baa2 is at the same level as the Philippines' sovereign rating. It is unlikely that the bank's ratings will be higher than that of the sovereign, given the high correlation of risks between the bank and the sovereign.

If Moody's upgrades the sovereign's rating and UnionBank's BCA, Moody's could upgrade the bank's ratings.

The following factors could result in an upward revision of the bank's BCA: (1) a consistent improvement in UnionBank's asset quality, as reflected in a stable or slower NPL formation rate; (2) steady improvement in the bank's earnings quality, as reflected in a sustained increase in its share of core recurring earnings; (3) higher levels of loss-absorption capacity, as reflected by a steady improvement in its capitalization; or (4) a proven ability to diversify its funding sources and reduce its dependence on high-cost corporate deposits.

UNIONBANK — WHAT COULD CHANGE THE RATING DOWN

UnionBank's BCA, and consequently its ratings, could be lowered if: (1) continued rapid expansion or acquisitions result in a significant increase in the bank's risk profile; (2) its operating environment weakens significantly or underwriting practices become lax, resulting in a significant increase in NPAs; (3) large borrower concentration risks rise materially; (4) the bank's reliance on corporate deposits rises further and increases its vulnerability to significant deposit outflow or liquidity issues; or (5) Moody's lowers the Macro Profile for the Philippines. The Macro Profile is a rating input used to determine a bank's BCA and is designed to capture systemwide factors that are predictive of the bank's propensity to fail.

UCPB — WHAT COULD CHANGE THE RATING UP

Moody's could raise UCPB's BCA or upgrade its deposit rating if the bank adheres to its rehabilitation plan and displays an ability to increase its profits, such that it can absorb the growing amortizations required under its rehabilitation plan through earnings, and if the bank maintains strong liquidity.

UCPB — WHAT COULD CHANGE THE RATING DOWN

Moody's could lower UCPB's deposit rating if: (1) the bank demonstrates a deterioration in its already weak loss-absorption capacity, such that its earnings fail to increase and are insufficient to absorb the amortizations required under its rehabilitation plan; thereby requiring a new bail-out or restructuring of the current plan; (2) UCPB's liquidity levels deteriorate, such that the bank's economic insolvency becomes a more pressing credit factor; or (3) Moody's assesses that systemic support for the bank has weakened.

The following ratings were assigned:

Bank of the Philippine Islands

Local currency long-term Counterparty Risk Rating of Baa1

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa1

Foreign currency short-term Counterparty Risk Rating of P-2

BDO Unibank, Inc.

Local currency long-term Counterparty Risk Rating of Baa1

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa1

Foreign currency short-term Counterparty Risk Rating of P-2

China Banking Corporation

Local currency long-term Counterparty Risk Rating of Baa2

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa2

Foreign currency short-term Counterparty Risk Rating of P-2

Land Bank of the Philippines

Local currency long-term Counterparty Risk Rating of Baa2

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa2

Foreign currency short-term Counterparty Risk Rating of P-2

Metropolitan Bank & Trust Company

Local currency long-term Counterparty Risk Rating of Baa1

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa1

Foreign currency short-term Counterparty Risk Rating of P-2

Philippine National Bank

Local currency long-term Counterparty Risk Rating of Baa2

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa2

Foreign currency short-term Counterparty Risk Rating of P-2

Rizal Commercial Banking Corporation

Local currency long-term Counterparty Risk Rating of Baa2

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa2

Foreign currency short-term Counterparty Risk Rating of P-2

Security Bank Corporation

Local currency long-term Counterparty Risk Rating of Baa2

Local currency short-term Counterparty Risk Rating of P-2

Foreign currency long-term Counterparty Risk Rating of Baa2

Foreign currency short-term Counterparty Risk Rating of P-2

Union Bank of the Philippines

Local currency long-term Counterparty Risk Rating of Baa2

Foreign currency long-term Counterparty Risk Rating of Baa2

United Coconut Planters Bank

Local currency long-term Counterparty Risk Rating of B1

Local currency short-term Counterparty Risk Rating of NP

Foreign currency long-term Counterparty Risk Rating of B1

Foreign currency short-term Counterparty Risk Rating of NP

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

Bank of the Philippine Islands, headquartered in Manila, reported total assets of PHP1.9 trillion (USD 36.7 billion) at 31 March 2018.

BDO Unibank, Inc., headquartered in Manila, reported total assets of PHP2.8 trillion (USD53.6 billion) at 31 March 2018.

China Banking Corporation, headquartered in Manila, reported total assets of PHP723 billion (USD13.9 billion) at 31 March 2018.

Land Bank of the Philippines, headquartered in Manila, reported total assets of PHP1,617 billion (USD32.4 billion) at 31 December 2017.

Metropolitan Bank & Trust Company, headquartered in Manila, reported total assets of PHP2.1 trillion (USD39.6 billion) at 31 March 2018.

Philippine National Bank, headquartered in Manila, reported total assets of PHP851 billion (USD16.3 billion) at 31 March 2018.

Rizal Commercial Banking Corporation, headquartered in Manila, reported total assets of PHP586 billion (USD11.2 billion) at 31 March 2018.

Security Bank Corporation, headquartered in Manila, reported total assets of PHP703 billion (USD13.5 billion) at 31 March 2018.

Union Bank of the Philippines, headquartered in Manila, reported total assets of PHP608 billion (USD11.7 billion) at 31 March 2018.

United Coconut Planters Bank, headquartered in Manila, reported total assets of PHP309 billion (USD6.2 billion) at 31 December 2017.

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.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

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.

Simon Chen
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Graeme Knowd
MD - Banking
Financial Institutions Group
JOURNALISTS: 81 3 5408 4110
Client Service: 81 3 5408 4100

Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

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