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 definitive ratings to SAIC-GMAC auto loan ABS in China: Rongteng 2018-2 Retail Auto Loan Securitization

08 Jun 2018

RMB9,350 million of securities rated

Hong Kong, June 08, 2018 -- Moody's Investors Service has assigned definitive Aa3 (sf) ratings on the Class A1 and A2 Notes, and A1 (sf) rating on the Class B Notes issued by Rongteng 2018-2 Retail Auto Loan Securitization, a domestic transaction backed by a pool of auto loans originated by SAIC-GMAC Automotive Finance Company Limited (SAIC-GMAC) in China.

The complete rating action is as follows:

Issuer: Rongteng 2018-2 Retail Auto Loan Securitization

....RMB2,800m Class A1 Notes, Assigned Aa3 (sf)

....RMB5,820m Class A2 Notes, Assigned Aa3 (sf)

....RMB730m Class B Notes, Assigned A1 (sf)

The RMB650m Subordinated Notes are not rated by Moody's.

The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate repayment of principal of the rated notes by the legal maturity date.

Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant impact on yield to investors.

RATINGS RATIONALE

When assigning the ratings, Moody's analysis focused, among other factors, on (1) the characteristics of the securitized pool; (2) the macroeconomic environment; (3) the lack of historical performance data during the economically distressed period; (4) the parental support available to the servicer; (5) the potential disruption to the issuer's cash flow in case of a servicer termination event, and the mitigants to support timely payments on the Class A1, A2 and B Notes (collectively, "the senior notes"); (6) the protection provided by credit enhancement against defaults and arrears in the securitized pool; and (7) the legal and structural integrity of the transaction.

The ratings assigned to the Class A1 and A2 Notes are constrained by China's local currency country ceiling (LCC, Aa3), which captures systemic risks associated with political, institutional, legal and economic factors.

Moody's considered, among other things, the transaction's key strengths:

(1) Diversified collateral pool composition: The cut-off portfolio consists of 178,144 obligors' loans with a good level of geographic diversification across 31 regions in China. Typically, a more granular pool exhibits less volatile performance.

(2) Favorable pool characteristics: The pool only includes loans to purchase new vehicles. 100% of the payments are made via direct debit. All loans are amortizing and have a weighted average LTV of 65.60% at origination.

(3) Short tenor of the collateral pool: The collateral pool has a short weighted average remaining tenor of 25.55 months.

(4) Static pool: This is a static deal with no revolving period. As a result, the notes are exposed to the default risk of the loans in the initial pool only.

(5) Full turbo structure: Subordination of the senior notes increases over time after closing. The issuer will apply the loan interest and principal repayments in accordance with its priority of payment, including repaying the Class A1 Notes up to its scheduled principal payment (or the outstanding Class A1 Notes amount disregarding the schedule if the Class A2 Notes have been repaid in full) on each note's payment date, and then the remaining collection will be used to repay the Class A2 Notes and Class B Notes sequentially until they are repaid in full.

(6) The originator's experience in the China auto finance sector: The originator was the first auto finance company established in the China, and has refined its underwriting process over time. The underwriting system is independent from its sales function and dealers. The originator uses a comprehensive set of data to assess a borrower's creditworthiness. SAIC-GMAC uses its own credit scoring system to assign a credit score to each borrower. Borrowers with score below a floor level are automatically rejected. The originator has a network of dealers which it also has wholesale business relationships with, this allows closer monitoring of the dealers and may allow more consistent origination and quality control.

Moody's has also considered the following weaknesses and mitigants:

(1) Untested back-up servicing arrangement: No back-up servicing arrangement was set up at closing. Servicing of the transaction may be subject to disruption if the originator/servicer fails to perform when needed. Any disruption may result in a significant impact because the transaction has more than 178,000 obligors located in various parts of China. There is no precedent in China of actual servicing transfers to date, although potential replacement servicers exist because there are several captive finance originators with obligors across the country. Moody's considers the high likelihood of parental support for the servicer and the short weighted average life of the rated notes as key mitigants to this weakness.

Although there is no explicit guarantee from the parent companies, the servicer is majority owned by SAIC Motor Corporation Ltd (SAIC, unrated) and is strategically important to the auto business of its parents, SAIC and General Motors Company (GM, Baa3, stable).

(2) Limited liquidity buffer: The transaction has no liquidity reserve fully funded upfront. Moody's considered the following mitigants in determining the operational and liquidity risks in this transaction, which refer to operational disruptions, including non-timely payments on the notes due to non-performance by the transaction parties: (a) the strong parental support available to the servicer; (b) the credit quality of the servicer's parents, SAIC and GM; (c) the short tenor of this transaction; and (d) the trustee will notify borrowers within 5 days of a servicer termination event. In the event that the servicer's rating by domestic credit agencies falls below certain levels, the excess spread will be used to fund various reserve accounts. Moody's has not relied, in its rating analysis, on triggers based on ratings assigned by other rating agencies.

(3) Commingling risk with the servicer's fund: The servicer will auto-debit the borrowers' bank accounts on each of the loans' monthly installment dates, and commingle such collections with its own funds. This amount will be subject to commingling risk until the servicer transfers such collections to the issuer's account (7th business day of each month) prior to the immediate notes' payment date (26th calendar day of each month). As a mitigant to commingling risk, the servicer will (a) immediately upon a ratings downgrade (by domestic rating agencies), reduce the commingling period by transferring collections from the servicer account to the trust account within four business days upon receipt of funds by the servicer; (b) maintain various reserve funds using excess spread trapping upon a rating downgrade (by domestic rating agencies); and (c) put in place a servicing transfer plan within 90 days of a domestic ratings downgrade. Moody's has considered the credit quality of the servicer and the payment mechanism in this transaction and incorporated one and a half months of cash commingling exposure in its modeling. Moody's has not relied -- in its rating analysis -- on triggers based on ratings assigned by other rating agencies.

(4) Lack of historical performance data during economically stressed period: The historical data provided covers the period from September 2011 to December 2017, a period that coincides with strong economic growth in China. Accordingly, Moody's has increased the mean default rate and coefficient of variation over those calculated with the historical pool performance data in the base-case analysis.

(5) Interest-rate mismatch: The underlying portfolio contains 100% fixed-rate loans. The Class A2 and B Notes' coupons are linked to the 1-year PBoC benchmark lending rate. An increase in the benchmark rate will cause a decrease of the amount of excess spread benefit, which refers to the excess interest collections that can be used to repay the principal of the notes and increase the over-collateralization after paying the senior fees, rated notes' interests and reserve requirements. Moody's has incorporated certain gradual increase of the benchmark lending rate in the modeling in its base-case analysis.

MAIN MODEL ASSUMPTIONS

Moody's assumed a mean default rate of 1.6% and a coefficient of variation of default of 65.0% for the securitized pool. A recovery rate of 10% is used as the other main input for Moody's cash flow model ABSROM. These assumptions are made according to Moody's analysis of the characteristics of such pools, their historical performance, and the current view of China's social and macroeconomic conditions and risks as reflected in its country ceiling of Aa3.

RATINGS METHODOLOGY

The principal methodology used in these ratings was Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS published in October 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that may cause an upgrade of the ratings of the Class A1 and A2 Notes include a decrease in non-diversifiable country risk in China. Factors that may cause an upgrade of the rating of the Class B Notes include a significant better-than-expected performance of the pool and an increase in the credit enhancement of the notes.

Factors that may cause a downgrade of the ratings include an increase in non-diversifiable country risk in China; a decline in the overall performance of the pool; a significant deterioration in the credit profile of the originator or its parent companies and the absence of the implementation of any mitigating actions for the deal.

The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. Performance that falls outside the given range may indicate that the collateral's credit quality is stronger or weaker than what Moody's had previously anticipated.

Stress Scenarios:

In rating auto loan ABS, default rate and coefficient of variation of default are two key inputs that determine the transaction cash flows in the cash flow model. Parameter sensitivities for this transaction have been tested in the following manner: Moody's tested nine scenarios derived from a combination of mean default rate and coefficient of variation of default:

Mean default rate: 1.60% (base case), and 1.7% (base case + 0.1%), and 1.8% (base case + 0.2%), and coefficient of variation of default: 65% (base case), 70% (base case + 5%), and 75% (base case + 10%).

At the time the ratings were assigned, the model output indicated that the Class A1 and A2 Notes would have achieved Aa3, if the mean default rate was 1.8% and the coefficient of variation of default rate was 75% instead of the base case assumption (all other factors unchanged). The model output for the Class B Notes would have achieved A3, if the mean default rate was 1.8% and the coefficient of variation of default rate was 75% instead of the base case assumption (all other factors unchanged).

The initial rating would differ if China's LCC changes while other rating factors remain unchanged. The Class A1 and A2 Notes could have achieved Aa1, if the notes' rating had not been constrained by the Aa3 local currency country ceiling, assuming all other factors remained unchanged.

Parameter sensitivities provide a quantitative/model indicated calculation of the number of notches that a Moody's rated structured finance security may vary if certain input parameters used in the initial rating process differed. The analysis assumes that the transaction has not aged. It is not intended to measure how the rating of the security might migrate over time, but rather how the initial model output for the senior notes might have differed if the two parameters within a given sector that have the greatest impact were varied. Results are model outputs, which are one of many inputs considered by rating committees, which take quantitative and qualitative factors into account in determining actual rating.

THE COMPANY

SAIC-GMAC is 55% owned by SAIC Motor Corporation Ltd (SAIC) and 45% owned by General Motors Company (GM, Baa3, stable). It is the first auto finance company established in China. It was established in August 2004 and is licensed under the supervision of the China Banking Regulatory Commission (CBRC). SAIC-GMAC has both a retail and wholesale business. The retail business provides auto loans to car purchasers of a number of brands, including GM and non-GM brands. The loans are originated through its dealership network across China.

The issuer is a newly established special purpose trust incorporated in the China.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions of the disclosure form.

Moody's took into account one or more third party due diligence assessment(s) regarding the underlying assets or financial instruments (the "Due Diligence Assessment(s)") in this credit rating action and used the Due Diligence Assessment(s) in preparing the ratings. This had a neutral impact on the ratings.

The Due Diligence Assessment(s) referenced herein were prepared and produced solely by parties other than Moody's. While Moody's uses Due Diligence Assessment(s) only to the extent that Moody's believes them to be reliable for purposes of the intended use, Moody's does not independently audit or verify the information or procedures used by third-party due-diligence providers in the preparation of the Due Diligence Assessment(s) and makes no representation or warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the Due Diligence Assessment(s).

The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody's estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.

Moody's describes the stress scenarios it has considered for this rating action in the section "Ratings Rationale" of this press release.

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.

For PRC only: Neither MCO nor any of its majority-owned affiliates is a qualified credit rating agency within the PRC. Any rating assigned by MCO or any of its majority-owned affiliates: (1) does not constitute a rating as required under any relevant PRC laws or regulations; (2) cannot be included in any registration statement, offering circular, prospectus or any other documents submitted to the PRC regulatory authorities; and (3) cannot be used within the PRC for any regulatory purpose or for any other purpose which is not permitted under relevant PRC laws or regulations. For the purposes of this paragraph, "PRC" refers to the mainland of the People's Republic of China, excluding Hong Kong, Macau and Taiwan.

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.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Joe Wong
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Jerome Cheng
Senior Vice President/Manager
Structured Finance Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

No Related Data.
© 2018 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. 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 SUCH 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 appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. 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. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

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 appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

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