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Rating Action:

Moody's changes outlook on selected UK life insurers following vote to leave the EU

28 Jun 2016

NOTE: On June 13, 2017, the press release was corrected as follows: in the list of affected ratings for RL Finance Bonds No. 3 plc, changed rating class from “Subordinate Regular Bond/Debenture” to “Backed Subordinate Regular Bond/Debenture”. Revised release follows.

London, 28 June 2016 -- Moody's Investors Service has today taken rating actions on eight insurance groups. Moody's affirmed the ratings and changed the outlooks to negative from stable for Legal & General Group Plc, Prudential UK, Standard Life plc and Royal London Mutual Insurance Society Ltd and to stable from positive for Aviva Plc and Scottish Widows Limited. Prudential Public Limited Company's and AIG Europe Limited's ratings were affirmed with a stable outlook and Old Mutual Wealth Life Assurance Limited's rating was affirmed with a negative outlook.

The actions follow a referendum vote in favour of the UK leaving the European Union and the recent change in the outlook of the UK's Aa1 government bond rating to negative from stable. For more details, please refer to Moody's press release: Moody's changes outlook on UK sovereign rating to negative from stable, affirms Aa1 rating (https://www.moodys.com/research/--PR_350566).

"Following the "leave" vote, we expect heightened uncertainty, diminished confidence and lower spending and investment to result in weaker economic growth in the UK reducing insurers' business growth potential and profitability. Furthermore financial market volatility will weigh on insurers' capitalisation" says Antonello Aquino, an Associate Managing Director at Moody's.

Please refer to the end of this press release for a detailed list of affected insurance ratings.

RATING RATIONALE

The change in outlook for selected UK life insurers reflects Moody's view that, following the "leave" vote, the resultant prolonged period of uncertainty for the UK will: (i) cause financial market volatility, which will weigh on insurers' capitalisation; and (ii) have negative implications for the country's medium-term growth outlook reducing, in turn, insurers' business growth potential and profitability.

The change in outlook incorporates the risk that a significant and long-lasting fall in the value of an insurer's asset portfolio, particularly in the absence of any management mitigating actions, leads to a deterioration in Solvency II coverage ratios for insurers most exposed to sterling-denominated assets.

The change in outlook also reflects elevated downside risks to the UK's growth prospects given that insurers' revenues and operating profits are largely correlated to economic growth. As outlined in Moody's press release published on 24 June 2016 (https://www.moodys.com/research/--PR_350566), the rating agency expects real GDP growth to be roughly half a per cent lower in 2016 and roughly one per cent lower in 2017 than the agency's previous forecasts of 1.8% and 2.1% respectively, driven by materially lower investment and somewhat lower private consumption. According to Moody's, should the UK's GDP growth be materially weaker than under this central scenario, UK insurers' asset quality, capital and profitability could also be materially impacted.

Moody's believes that the most affected groups are UK domestic life insurers, as a result of: (i) their high asset leverage (total invested assets as a percentage of shareholders' equity); (ii) their significant exposure to UK investments (given their policy to match sterling-denominated liabilities with sterling-denominated assets); and (iii) the discretionary nature of some life insurance products, whose sales are correlated to the economic cycle. Moody's recognises that life insurance sales volumes are not driven purely by economic growth levels. However the combination of weaker economic growth and potential political, business and consumer uncertainty as the UK negotiates its exit from the EU, is likely to weigh on life insurers' sales volumes in the short to medium term.

In contrast, Moody's expects the operational impact to be manageable for most rated insurers. Moody's does not expect changes to current insurance passporting rights to have profound implications for the insurance industry overall because most UK groups operate in continental Europe through subsidiaries, and vice versa for continental European insurers. For those groups with no local subsidiaries, a material restriction on current passporting rights would be more disruptive and costly, but still manageable because they will have sufficient time to adapt during the negotiation period.

--- ISSUER SPECIFIC ACTIONS

RATINGS AFFIRMED - OUTLOOK CHANGED TO NEGATIVE FROM STABLE

--Legal & General Group Plc

Moody's has changed the outlook to negative from stable for Legal & General Group Plc (L&G) reflecting the insurer's direct exposure to the UK both in terms of investment portfolio and business profile. L&G's asset leverage (including with-profits and excluding unit-linked investments) was around 9.5x at YE2015 and around 78% of its GWP in 2015 was generated in the UK.

L&G has recently been expanding internationally in its asset management and bulk annuity business, but its geographic diversification outside the UK market currently remains relatively limited.

--Prudential UK

Moody's has changed the outlook to negative from stable for Prudential Assurance Company Ltd ("PAC"), Prudential Plc's main UK life operating company, reflecting the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. PAC's asset leverage (including with-profits investments and excluding unit-linked assets) was around 11x at YE2015 and around 91% of its GWP in 2015 was generated in the UK.

--Royal London Mutual Insurance Society Ltd.

Moody's has changed the outlook to negative from stable for Royal London Mutual Insurance Society Ltd. (Royal London), reflecting the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. Royal London's asset leverage was 11.7x (excluding the linked portfolio) at YE2015 and 97% of its European Embedded Value operating profit before taxes was generated in the UK.

--Standard Life

Moody's has changed the outlook to negative from stable for Standard Life plc (Standard Life), reflecting the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. Standard Life's asset leverage was 8.3x (excluding the linked portfolio) at YE2015 and 75% of the group's 2015 revenues (including Standard Life Investments) was generated in the UK.

WHAT COULD MOVE THE RATINGS DOWN/UP

Given the negative outlook on L&G, PAC, Royal London and Standard Life, Moody's says that upward pressure on these ratings is currently limited. Downwards pressure on these ratings could develop in the event that economic headwinds and financial volatility are more widespread and protracted than expected under Moody's central scenario, thereby, translating into a long-lasting and material deterioration in the company's: (i) solvency position; and/or (ii) operating performance; and/or (iii) financial flexibility.

RATINGS AFFIRMED - OUTLOOK CHANGED TO STABLE FROM POSITIVE

--Aviva Plc

Moody's has changed the outlook to stable from positive for Aviva Plc and its subsidiaries, reflecting the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. In 2015 Aviva generated 45% of GWP and 57% of operating profits in the UK and Ireland, and asset leverage was 10x at YE2015 (excluding unit-linked assets). UK life insurance operations are Aviva's largest operations, representing 43% of the group's operating profits in 2015.

The previous positive outlook on Aviva Plc was predicated on recent improvements in Aviva's capitalisation and financial leverage, as well as Moody's expectation that Aviva group's profitability and resulting volatility will improve over the next 12-18 months. Moody's says that it still expects such improvements to materialise in the medium-term, but that the likelihood of adverse scenarios has now substantially increased, hence reducing the likelihood of an upgrade to Aviva's ratings in the short-term.

Upward pressure on Aviva Plc's ratings could develop if: (i) the group reported consistently good profitability, as evidenced by a return on capital of 7% (excluding amortisation of intangibles) or above and with low volatility; or (ii) Aviva's adjusted financial leverage decreased below 25%, with interest coverage consistently exceeding 8x.

Conversely, downward pressure on Aviva Plc's ratings could develop if: (i) Aviva reported a material deterioration in capitalisation; (ii) the group's financial leverage exceeded 35% and earnings coverage decreased consistently below 4x; or (iii) core profitability deteriorated, as evidenced by a combined ratio consistently above 100% or reduced life margins. These long-lasting and material pressures on solvency, profitability and/or financial flexibility could notably arise in the event of more widespread and prolonged financial volatility and economic headwinds than those expected under Moody's central scenario.

--Scottish Widows Limited

The A2 IFSR on Scottish Widows Limited (Scottish Widows) is constrained by its ownership by Lloyds Bank Plc (baa1 BCA). Moody's therefore changed the outlook to stable from positive on Scottish Widows to reflect the change in outlook to stable from positive for the parent company, Lloyds Bank Plc (senior debt A1 Stable; baseline credit assessment baa1). The change in outlook also reflects the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. Scottish Widows' asset leverage was 4.6x (excluding the linked portfolio) at YE2015 and almost 100% of its new business premiums were generated in the UK in 2015.

Downwards pressure could develop in the event that economic headwinds and financial volatility are more widespread and protracted than expected under Moody's central scenario, thereby driving (i) a long-lasting and material deterioration in Scottish Widows' financial leverage (including internal debt), to consistently exceed 35% or earnings coverage below 4x; and/or (ii) a negative change in Lloyds Bank's rating and/or outlook.

Conversely, Moody's also said that the following factors could put upward pressure on Scottish Widows' ratings: (i) an improvement in Lloyds Bank's BCA rating and/or outlook; (ii) an improvement in Scottish Widows' standalone fundamentals as a result of (a) a sustained improvement in underlying earnings, with a return on capital consistently above 6% in the medium term; and (b) lower volatility in earnings, without a material deterioration of the liability profile or the investment quality.

RATINGS AFFIRMED - OUTLOOK REMAINS NEGATIVE

--Old Mutual Wealth Life Assurance Limited

Moody's maintains the negative outlook for Old Mutual Wealth Life Assurance (OMWLAL, the rated entity within the OMW group) reflecting the insurer's direct exposure to the UK both in terms of its investment portfolio and business profile. Moody's estimates OMW's asset leverage as 2.2x (excluding the unit-linked portfolio) at YE2015 and the proportion of adjusted operating profit generated in the UK is estimated at 60%.

Moody's believes the UK's decision to leave the EU is credit negative for OMW because: (i) volatility and protracted uncertainty in financial markets will place funds under management and net client cash flows under pressure, potentially reducing profitability and limiting the organic growth necessary to build scale; and (ii) while OMW does not have a significant amount of UK/EU cross-border business, it may need to devote resources to effect the operational changes necessary to maintaining the business it currently conducts in the European Economic Area.

Moody's explained that these factors compound the negative outlook that was in place before the vote to leave the EU , which reflected: (i) execution risk associated with its IT project and the possibility of market position erosion should the IT transformation not be successful or completed in a timely manner; and (ii) uncertainty and execution risks associated with OMW's preparation for separation from Old Mutual, leading to increased negative pressure on the rating.

Given the negative outlook on OMWLAL, Moody's says that upward pressure is currently limited. Downwards pressure on these ratings could develop in the event that economic headwinds and financial volatility are more widespread and protracted than expected under Moody's central scenario, thereby translating into a long-lasting and material deterioration in the company's (i) solvency position ; and/or (ii) operating performance; and/or (iii) financial flexibility.

RATINGS AFFIRMED - OUTLOOK REMAINS STABLE

--AIG Europe Limited

Moody's has maintained its stable outlook on AIG Europe Limited (AIGEL), reflecting the insurer's well-diversified investment portfolio and strong business mix. Operational risk for AIGEL is somewhat higher than other UK-based peers because AIG group underwrites the vast majority of its European business from its UK-based subsidiary, AIGEL. In fact, AIGEL derives around 59% of its revenues from outside the UK and, as such, a material disruption to existing passporting rights as a result of the vote to leave the EU is the key risk for the company.

The affirmation of AIGEL's IFSR with a stable outlook reflects Moody's expectation that the group has sufficient time to make necessary operational changes to adapt to this new environment. In particular, Moody's notes that the non-UK business is primarily written in respective countries through AIGEL's branches, which could therefore become separate legal entities from the UK with relative ease.

Downwards pressure on AIGEL's credit profile could develop in the event that that economic headwinds and financial volatility are more widespread and protracted than expected under Moody's central scenario, and/or changes to current UK/EU passporting rules translate into a long-lasting and material deterioration in the company's market position, capitalisation and/or operating performance. Although considered unlikely in the short term given that the ratings were downgraded in January 2016, Moody's said that a positive rating action on AIG US PC units could put upward pressure on AIGEL's rating.

--Prudential Public Limited Company

Notwithstanding the negative outlook assigned to PAC, Moody's has affirmed Prudential Plc's debt ratings with a stable outlook. This reflects Prudential's excellent product and geographic diversification, with significant exposure to the Asian and US markets, which reduces its reliance on the UK life insurance market. At YE2015, around 25% of Prudential Plc's operating profit was generated from its UK life business.

SUMMARY PROFILES OF AFFECTED GROUPS

AIG Europe Limited, headquartered in London, United Kingdom, had consolidated total assets of GBP 13.1 billion and shareholders' equity of GBP 3,211 million at year-end 2015 under IFRS.

Aviva Plc, headquartered in London, United Kingdom, had consolidated total assets of GBP 388 billion and total equity of GBP 18.232 million at year-end 2015 under IFRS.

Legal & General Group plc, headquartered in London, United Kingdom, had consolidated total assets of GBP 397 billion and shareholders' equity of GBP 6,404 million at year-end 2015 under IFRS.

Old Mutual, headquartered in Southampton, United Kingdom, had consolidated total assets of GBP 133.4 billion and shareholders' equity of GBP 6,680 million at year-end 2015 under IFRS.

Prudential Plc, headquartered in London, United Kingdom, had consolidated total assets of GBP 387 billion and shareholders' equity of GBP 13 billion at year-end 2015 under IFRS.

Royal London, headquartered in London, United Kingdom, had consolidated total assets of GBP 74.9 billion and unallocated divisible surplus of GBP 3,314 million at year-end 2015 under IFRS.

Standard Life plc, headquartered in Edinburgh, United Kingdom, had consolidated total assets of GBP 176.7 billion and shareholders' equity of GBP 4,349 million at year-end 2015 under IFRS.

Scottish Widows Limited, registered office in London, United Kingdom, had consolidated total assets of GBP 135.1 billion and shareholders' equity of GBP 6,485 million at year-end 2015 under IFRS.

RATINGS AFFECTED

Issuer: Aviva Plc

..Affirmations:

....Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

....Senior Unsecured Medium-Term Note Program, affirmed (P)A3

....Subordinate Medium-Term Note Program, affirmed (P)Baa1

....Tier III Debt Medium-Term Note Program, affirmed (P)Baa1

....Pref. Stock, affirmed Baa2 (hyb)

....Subordinate Regular Bond/Debenture, affirmed Baa1(hyb)

....Commercial Paper, affirmed P-2

....Backed Commercial Paper, affirmed P-1

....Tier III debt Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Aviva International Insurance Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A1

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Aviva Insurance Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A1

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Aviva Life & Pensions UK Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A1

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Friends Life Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A1

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Friends Life Holdings plc

..Affirmations:

....Backed Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

....Backed Senior Subordinated Regular Bond/Debenture, affirmed A3(hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Positive

Issuer: Prudential Public Limited Company

..Affirmations:

....Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

....Subordinate Medium-Term Note Program, affirmed (P)A3

....Senior Unsecured Medium-Term Note Program, affirmed (P)A2

....Subordinate Regular Bond/Debenture, affirmed A3(hyb)

....Senior Subordinated Regular Bond/Debenture, affirmed A3(hyb)

.... Commercial Paper, affirmed P-1

....Senior Unsecured Regular Bond/Debenture, affirmed A2

..Outlook Actions:

....Outlook, Remains Stable

Issuer: Prudential Assurance Company Ltd

..Affirmations:

.Insurance Financial Strength Rating, affirmed Aa3

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Scottish Amicable Insurance Fund

..Affirmations:

.Insurance Financial Strength Rating, affirmed Aa3

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Scottish Amicable Finance Plc

..Affirmations:

....Backed Subordinate Regular Bond/Debenture, affirmed A2(hyb)

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Prudential Retirement Income Ltd

..Affirmations:

.Insurance Financial Strength Rating, affirmed Aa3

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Royal London Mutual Insurance Society Ltd.

..Affirmations:

.Insurance Financial Strength Rating, affirmed A2

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: RL Finance Bonds No. 2 plc

..Affirmations:

....Backed Subordinate Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: RL Finance Bonds No. 3 plc

..Affirmations:

....Backed Subordinate Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Scottish Life Fund

..Affirmations:

.Insurance Financial Strength Rating, affirmed A2

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Scottish Widows Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A2

....Subordinate Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

....Outlook changed to Stable from Positive

Issuer: Clerical Medical Finance plc

..Affirmations:

....Backed Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

.... Outlook changed to Stable from Positive

Issuer: Legal & General Group Plc

..Affirmations:

....Long-term Issuer Rating, affirmed A3

....Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

....Senior Unsecured Medium-Term Note Program, affirmed (P)A3

....Subordinate Medium-Term Note Program, affirmed (P)Baa1

....Pref. Stock, affirmed Baa2(hyb)

....Subordinate Regular Bond/Debenture, affirmed Baa1(hyb)

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Legal & General Assurance Society Ltd.

..Affirmations:

.Insurance Financial Strength Rating, affirmed Aa3

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Legal & General Finance plc

..Affirmations:

....Long-term Issuer Rating, affirmed A3

....Backed Commercial Paper, affirmed P-2

....Backed Senior Unsecured Medium-Term Note Program, affirmed (P)A3

....Backed Senior Unsecured Regular Bond/Debenture, affirmed A3

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Standard Life plc

..Affirmations:

....Long-term Issuer Rating, affirmed Baa1

....Backed Junior Subordinated Regular Bond/Debenture, affirmed Baa1(hyb)

....Backed Subordinate Medium-Term Note Program, affirmed (P)A3

....Subordinate Regular Bond/Debenture, affirmed Baa2(hyb)

....Backed Senior Unsecured Medium-Term Note Program, affirmed (P)A2

....Backed Subordinate Regular Bond/Debenture, affirmed A3(hyb)

..Outlook Actions:

....Outlook, Changed To Negative From Stable

Issuer: Standard Life Assurance Ltd.

..Affirmations:

.Insurance Financial Strength Rating, affirmed A1

..Outlook Actions:

....Outlook changed to Negative from Stable

Issuer: Old Mutual Wealth Life Assurance Limited

..Affirmations:

.Insurance Financial Strength Rating, affirmed A2

..Outlook Actions:

....Outlook remains Negative

Issuer: AIG Europe Limited

.Insurance Financial Strength Rating, affirmed A2

..Outlook Actions:

....Outlook remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in rating Aviva Life & Pensions UK Limited, Clerical Medical Finance plc, Friends Life Holdings plc, Friends Life Limited, Legal & General Assurance Society Ltd., Legal & General Finance plc, Legal & General Group Plc, Old Mutual Wealth Life Assurance Limited, Prudential Assurance Company Ltd, Prudential Public Limited Company, Prudential Retirement Income Ltd, RL Finance Bonds No. 2 plc, RL Finance Bonds No. 3 plc, Royal London Mutual Insurance Society Ltd., Scottish Amicable Finance Plc, Scottish Amicable Insurance Fund, Scottish Life Fund, Scottish Widows Limited, Standard Life Assurance Ltd. and Standard Life plc was Global Life Insurers published in April 2016. The principal methodologies used in rating Aviva Plc were Global Life Insurers published in April 2016, and Global Property and Casualty Insurers published in June 2016. The principal methodology used in rating AIG Europe Limited, Aviva Insurance Limited, and Aviva International Insurance Limited was Global Property and Casualty Insurers published in June 2016. Please see the Ratings Methodologies page on www.moodys.com for a copy of these methodologies.

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.

Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. On this basis Friends Life Holdings plc, Friends Life Limited, Scottish Life Fund or their agents are considered to be participating entities. These rated entities or their agents generally provide Moody's with information for their ratings process.

The person who approved AIG Europe Limited, Aviva Insurance Limited, Aviva International Insurance Limited, Aviva Life & Pensions UK Limited, Aviva Plc, Friends Life Holdings plc, Friends Life Limited, Old Mutual Wealth Life Assurance Limited, RL Finance Bonds No. 2 plc, RL Finance Bonds No. 3 plc, Royal London Mutual Insurance Society Ltd., Scottish Life Fund, Standard Life Assurance Ltd., and Standard Life plc credit ratings is Antonello Aquino, Associate Managing Director, Financial Institutions Group, JOURNALISTS: 44 20 7772 5456, SUBSCRIBERS: 44 20 7772 5454. The person who approved Clerical Medical Finance plc, Legal & General Assurance Society Ltd., Legal & General Finance plc, Legal & General Group Plc, Prudential Assurance Company Ltd, Prudential Public Limited Company, Prudential Retirement Income Ltd, Scottish Amicable Finance Plc, Scottish Amicable Insurance Fund, and Scottish Widows Limited credit ratings is Simon Harris, MD-Gbl Ins and Mgd Invests, Financial Institutions Group, JOURNALISTS: 44 20 7772 5456, SUBSCRIBERS: 44 20 7772 5454.

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 analyst and the Moody's legal entity that has issued the ratings.

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

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

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

Brandan Holmes
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Antonello Aquino
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

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.

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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.

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