Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities. Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision. No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.

 

4.             To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.     

 

5.             You agree to read and be bound by the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's changes Senegal's outlook to stable from negative, affirms Ba3 rating

18 Mar 2022

New York, March 18, 2022 -- Moody's Investors Service ("Moody's") has today affirmed the Government of Senegal's Ba3 long-term issuer ratings and changed the outlook to stable from negative. The rating on Senegal's foreign-currency senior unsecured debt has also been affirmed at Ba3. The short-term rating was affirmed at Not Prime (NP).

The outlook change to stable from negative reflects an increased likelihood in Moody's view that the government's debt burden will stabilise, and in the absence of new significant shocks, eventually embark on a downward trajectory over the coming years. In particular, as energy projects come on stream and significantly bolster economic growth, Senegal benefits from some resilience to the global implications of Russia's invasion of Ukraine. Fiscal consolidation will be a protracted process in Moody's view given elevated spending pressures, but will be supported by ongoing IMF arrangements as well as efforts to strengthen domestic revenue generation.

The affirmation reflects the view that Senegal's credit profile remains consistent with a Ba3 rating. Membership in the West African Economic and Monetary Union (WAEMU) significantly reduces risks arising from Senegal's high levels of foreign-currency debt and mitigates risks stemming from sizeable current account deficits. Notwithstanding a strong growth outlook, wealth and economic competitiveness remain low in global terms and relative to rating peers. Senegal's hydrocarbon prospects support the economy's long-term growth potential, but the government's gas-to-power strategy also presents the potential for higher than anticipated public spending.

Senegal's local and foreign currency country ceilings remain unchanged at Baa2 and Baa3, respectively. The local currency country ceiling is four notches above the sovereign rating to take into account the moderate footprint of the government in the economy, the relative strength of the institutional framework, as well as the mitigating impact of Senegal's WAEMU membership on external imbalances. The foreign currency country ceiling maintains a one-notch gap to the local currency country ceiling to reflect Moody's assessment of limited transfer and convertibility risks due to the French Treasury guarantee of the peg between the CFA franc and the euro.

RATINGS RATIONALE

RATIONALE FOR THE CHANGE IN OUTLOOK TO STABLE FROM NEGATIVE

The decision to stabilise the outlook is driven by the increased likelihood in Moody's view that Senegal's central government debt burden will stabilise from around 67% of estimated GDP in 2021 and, in the absence of renewed significant shocks, will eventually start declining.

In particular, the anticipated onset of hydrocarbon production significantly bolsters growth prospects for the next few years, lending some resilience to the global implications of Russia's invasion of Ukraine. Also, increased domestic revenue mobilization and IMF anchoring are likely to contribute to gradual improvements in fiscal outcomes. As a result, Moody's expects Senegal's overall fiscal deterioration, relative to the pre-pandemic period of 2019, to be in line with peers at the Ba3 rating level.

The path for the debt burden will be driven to a large extent by a strong medium-term growth outlook. Moody's expects economic growth to temporarily reach close to 10% in connection with the development of hydrocarbon production, driven by two major gas and oil projects currently targeted for completion in 2023, Grand Tortue Ahmeyim (GTA) and Sangomar. Outside of the strong, albeit transient, effects on growth of the expansion of the hydrocarbon sector, a trend growth rate of around 5% will be anchored by efforts to improve the environment for business and private investment, as well as the development of human capital. The government is also aiming to develop the Yaakar-Téranga gas project to underpin its gas-to-power strategy, allowing for more reliable and less costly electricity and a reduced reliance on oil imports. However, a final investment decision has not yet been reached.

The pandemic has led to a sharp increase in the budget deficit, which widened to 6.4% of GDP in 2020 and 6.3% of GDP in 2021 (including 0.9 percent of GDP in exceptional spending related to the use of Senegal's IMF SDR allocation). Fiscal consolidation will be a protracted process in Moody's view given elevated social spending pressures and the downside risks presented by elevated global oil and food prices. However, multiannual efforts to increase the domestic revenue base will support fiscal improvements, while concurrent IMF arrangements provide a policy anchor for the recovery phase from the pandemic. Hydrocarbon revenues will also contribute positively to the budget once Sangomar and GTA come on stream, but to a relatively limited extent – in line with Senegal's expected status as a medium-sized oil and gas producer.

Moody's confidence regarding Senegal's shock-absorption capacity has also increased. Relative resilience to the economic shock of the pandemic was demonstrated by a growth rate of 1.5% in 2020 compared to a median contraction of 4.8% across Ba3-rated peers, stemming from a strong agricultural season and the relatively effective fiscal policy support provided by the government's response to the shock through the Economic and Social Resilience Programme (PRES), which amounted to around 7% of GDP. Government borrowing costs remained contained, in part due to strong concessional support and regional liquidity support measures. Progress on structural reforms has also continued throughout the pandemic.

Overall, the stable outlook reflects Moody's assessment of relatively resilient credit metrics for Senegal. Resilience will be tested in the next few years, since Russia's invasion into Ukraine and subsequent policy responses in major markets increases the downside risks for the global macroeconomic outlook with elevated inflationary pressures due to high energy prices and a deceleration of economic activity.

RATIONALE FOR AFFIRMING THE Ba3 RATING

The factors supporting the affirmation of Senegal's Ba3 sovereign rating include the macroeconomic and currency stability provided by its WAEMU membership, which significantly reduces risks arising from Senegal's high levels of foreign-currency debt. Pooled regional foreign-exchange reserves also provide a backstop to the balance of payments. WAEMU's pool of foreign exchange reserves stood at USD15 billion in December 2021, with gross international reserves equivalent to almost 6 months of import cover. The associated stability will be crucial in mitigating the terms-of-trade shock of high global commodity prices.

Senegal benefits from a number of supportive debt structure factors which mitigate the risks inherent in a high debt load. These include: (1) reduced foreign-exchange risk because of the CFA franc's peg to the euro, as well as swap arrangements for US dollar-denominated commercial debt; (2) the debt burden's long average maturity, at around 10 years; and (3) a comparatively high proportion of concessional debt at around 40% of total debt as of end-2021, which supports debt affordability. Moody's forecasts the government's interest payments to reach 10.5% of revenue in 2022, compared to the Ba3-rated median of 11.8%.

Balanced against these credit supports are challenges stemming from low income levels and weak economic competitiveness in global and relative terms, weighing on the economy's revenue-generation capacity. Although expected to stabilise and eventually decline, high debt levels remain a constraint on the government's capacity to absorb shocks and support the development of the economy. Taking the outstanding debts of state-owned enterprises and parastatals into account would add another seven percentage points of GDP to the central government debt stock. Meanwhile, the ultimate costs of the government's gas-to-power strategy remain uncertain, and the ability to finance infrastructure upgrades in the energy sector may be constrained by Senegal's high government debt burden.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Senegal's ESG Credit Impact Score is highly negative (CIS-4), reflecting its high exposure to environmental and social risks and moderate governance. Resilience to environmental and social risks is increasingly constrained by low income and high debt levels.

Senegal's credit profile is highly exposed to environmental risks, reflected in its E-4 issuer profile score. Physical climate risk exposure is high and mainly reflects heat stress and some exposure to sea level rise. Water risks are also very high with almost half of the population exposed to unsafe drinking water. Sensitivity to environmental risks is exacerbated by the high share of employment in the agricultural sector at 30% of total employment.

Exposure to social risks is highly negative as reflected in the S-4 issuer profile score. Favourable demographic trends are counterbalanced by a high total dependency ratio and weak educational indicators, including low secondary enrollment rates. Access to basic services is also impaired with only 70% of the population having access to electricity. Labour markets feature a high share of vulnerable employment without formal work arrangements at 63% of the total. These precarious work arrangements are partially mitigated by household income support via remittances accounting for about 10% of GDP.

Senegal has a moderate governance score (G-3 issuer profile) supported by governance reforms implemented with the technical assistance of the IMF under consecutive policy coordination programs, and solid control of corruption and political stability rankings among all rated sovereigns in the Worldwide Governance Indicators. Challenges relate to the ongoing control of below-the-line spending that had added to the debt stock in the past few years, and to the improved debt management of state-owned enterprises that affect the government's funding requirements.

GDP per capita (PPP basis, US$): 3,503 (2020 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 1.5% (2020 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 2.4% (2020 Actual)

Gen. Gov. Financial Balance/GDP: -6.4% (2020 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -10.8% (2020 Actual) (also known as External Balance)

External debt/GDP: 83.5% of GDP (2020 Actual)

Economic resiliency: ba2

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

On 15 March 2022, a rating committee was called to discuss the rating of the Senegal, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's institutions and governance strength, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The issuer's susceptibility to event risks has not materially changed.

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

FACTORS THAT COULD LEAD TO AN UPGRADE

Upward pressure on the rating would arise from a more rapid and material decrease in the debt burden than Moody's currently expects, thereby improving the government's capacity to absorb shocks. This would likely be related to sustained fiscal consolidation and durable improvements in domestic revenue generation.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Downward pressure on the rating would arise from protracted delays in the pace of targeted fiscal consolidation, that point to a pronounced and lasting increase in the debt burden. Materially higher than anticipated costs related to the development of Senegal's hydrocarbon resources that affect the sovereign's fiscal strength would also be credit negative.

The principal methodology used in these ratings was Sovereign Ratings Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1158631. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

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

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

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

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

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

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

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

Elisa Parisi-Capone
Vice President - Senior Analyst
Sovereign Risk Group
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

Marie Diron
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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.
© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

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

Moodys.com