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” [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 changes the outlook on Trinidad and Tobago's ratings to negative, affirms Ba1 ratings

22 May 2020

New York, May 22, 2020 -- Moody's Investors Service, ("Moody's") has today changed the outlook on the Government of Trinidad and Tobago's ratings to negative from stable. At the same time, the government's long-term issuer and senior unsecured debt ratings have been affirmed at Ba1.

The negative outlook reflects increased downside risks to Trinidad and Tobago's economic and fiscal strength stemming from medium-term challenges that have now been exacerbated by the severe shock to global oil and gas demand and prices, triggered by the coronavirus pandemic.

The negative outlook is also informed by uncertainty regarding the degree to which the government will be able to offset revenue losses over time and sustain robust economic growth and budgetary outcomes conducive to a stabilization or gradual reduction in its debt burden. In Moody's view, fiscal and debt dynamics are highly sensitive to a recovery in the energy sector and risks to government debt ratios remaining at higher levels have materially risen.

Trinidad and Tobago's government's balance sheet has weakened since the previous oil price shock in 2015, notwithstanding recent fiscal consolidation efforts, leaving the sovereign's credit profile exposed to a further prolonged period of depressed oil and gas prices or lower investment in the energy sector than what the authorities currently expect. In addition, despite renewed efforts, limited prospects for economic diversification and institutional constraints will continue to limit the shock absorption capacity of the economy.

The affirmation of Trinidad and Tobago's Ba1 rating recognizes that the sovereign maintains sizable fiscal buffers, which underpins the government's fiscal strength, low government liquidity risks and limited external vulnerabilities.

The rapid and widening spread of the coronavirus pandemic, which has led to a sharp deterioration in the global economic outlook and, relatedly, to a large fall in the price of oil, has created an unprecedented shock to a wide range of regions and markets. Moody's regards the coronavirus outbreak as a social risk under its ESG framework.

Trinidad and Tobago's long-term foreign-currency bond ceiling remains unchanged at Baa3. The foreign-currency bank deposit ceiling remains at Ba2, while the local-currency bond and bank deposit ceilings remain at Baa2. The short-term foreign-currency bond and bank deposit ceilings remain unchanged at P-3 and Not Prime (NP), respectively.

RATINGS RATIONALE

RISKS OF LASTING NEGATIVE IMPACT ON ECONOMIC STRENGTH FOLLOWING THE CORONAVIRUS SHOCK

The deep global economic recession that Moody's expects in 2020 triggered by the pandemic will reduce prices and demand for oil and gas products, and while the rating agency expects a recovery in 2021, risks are tilted to the downside. A period of prolonged lower prices and depressed demand would have a lasting impact on Trinidad and Tobago's medium-term economic growth given the relevance of energy sector dynamics on GDP growth. Oil and gas products account for about 26% of GDP and 80% of exports. Importantly, without a strong recovery in energy production levels in the country relative to 2019-20 it would be difficult for Trinidad and Tobago to post positive real GDP growth - real GDP has contracted every year since 2016 and is expected to do so again in 2020. If prices were to remain depressed in the coming years or if the private companies that dominate the energy sector in Trinidad and Tobago were to decide against ramping up investment, the continuation of consecutive years of economic stagnation or contractions could follow.

While the government of Trinidad and Tobago has lowered its forecasts for oil and gas prices in 2020 through 2022, the authorities still expect high investment levels in the energy sector and project a very strong production rebound in 2021 and 2022. As Moody's baseline scenario assumes weaker gains in oil and gas production levels in the coming years, lower growth in the energy sector, coupled with a sharp decline in the non-energy sector derived from "shelter-in place" policies to contain the spread of the coronavirus, will lead real GDP to contract by 4.3% in 2020 followed by a moderate recovery of 3% growth in 2021.

Despite renewed efforts, limited prospects for economic diversification and institutional constraints will continue to limit the economy's shock absorption capacity and the country's growth potential. The business environment remains challenging, which raises the cost of doing business and impedes investment activity. Other factors, such as skills mismatches in the labor force, pose challenges to the development of a more robust non-energy sector of the economy. Government bureaucracy also weigh on the investment climate.

RISKS TO DEBT STABILIZING GIVEN THE SENSITIVITY OF FISCAL AND DEBT METRICS TO A RECOVERY IN THE ENERGY SECTOR

Moody's expects the sharp GDP economic contraction in 2020 to significantly reduce government revenue this year. This, in addition to a modest increase in government spending relative to 2019 to address health risks and mitigate the negative economic impact of the pandemic, will lead to a rise in the fiscal deficit to around 10% of GDP this year.

Looking beyond the shocks of 2020, Moody's believes there is relevant risk in the ability of the government to sufficiently curb expenditures and materially improve debt dynamics in the medium term, even more so if government revenue does not recover as much as the authorities expect. While the rating agency expects the fiscal stimulus measures implemented to address the pandemic to be scaled back in 2021, and assumes a recovery in energy prices and production to increase government revenue next year, Moody's believes that fiscal consolidation efforts on the expenditure side could prove insufficient to place the debt trend on a sounder footing.

Measures that could also help arrest the debt trend, such as phasing out a significant part of transfers to state-owned enterprises (SOEs), are politically sensitive and therefore challenging to implement since the government plays an important role in maintaining employment levels and domestic demand through its spending on social programs and transfers to public-sector enterprises. That said, after the 2015 oil price shock, the government did cut spending on goods and services and capital expenditures, and reduced subsidies and transfers to SOEs, including the closure of a loss-making refinery. While the fiscal consolidation implemented in 2016-17 was larger and more effective than what Moody's had initially anticipated, demonstrating institutional capacity to do so, it still accounted for only around half of the lost government revenue, and the policy response came in mid-2016 and 2017, after the impact of the oil price shock in government revenue was evident.

Moreover, downside scenarios highlight how sensitive GDP growth and debt dynamics are to drops in energy prices and to oil and gas production assumptions, underscoring the impact a prolonged period of lower oil prices or depressed demand would have in Trinidad and Tobago's credit profile. Under Moody's baseline scenario, debt will increase to 78% of GDP in 2021 from 64% in 2019. In a scenario where gas prices remain low, or in which private investment in new wells is not being carried out, debt could increase to a range of 81%-84% of GDP by 2021.

RATIONALE FOR THE AFFIRMATION OF THE Ba1 RATINGS

Moody's decision to affirm Trinidad and Tobago's Ba1 rating recognizes that the sovereign maintains sizable fiscal buffers, which underpins the government's fiscal strength, low government liquidity risks and limited external vulnerabilities.

The assets at the Heritage and Stabilization Fund (HSF) provide a sizable fiscal buffer, supporting our assessment of fiscal strength. The rules that allow withdrawing from the fund are strict and the government has tapped it only three times. As of 30 April 2020, the stock of assets in the fund amounted to $6.19 billion (or 26% of our estimate for 2019 GDP). These assets are liquid and invested in international equities and fixed income assets. The authorities secured legislative authorization to withdraw up to $1.5 billion (6% of our estimate for 2019 GDP) from the HSF to cover part of this year's fiscal deficit. That said, the authorities do not expect to withdraw the entirety of the approved amount this fiscal year. Moody's believes the authorities may be eligible to withdraw an additional amount, under the rules of the HSF, in the next fiscal year. As a result, the rating agency expects the HSF to decline to 20% of GDP by the end of 2021 from the current 26% of GDP.

Trinidad and Tobago also has low government liquidity risks due to ample access to a relatively deep domestic financial market. In the past, the government has comfortably met most of its financing needs from domestic funding sources, which have covered on average around 80% of its total needs. Given the significant increase in gross financing needs for 2020, which the authorities estimate at around 15% of GDP, the government plans to complement domestic market issuances with multilateral financing and withdrawals from the heritage stabilization funds, as well as tap international markets to refinance a maturing global bond.

In terms of external vulnerabilities, pressures are contained by a positive international investment position, recurring current account surpluses (although Moody's expects a deficit this year), and a low level of external debt payments relative to international reserves. A large stock of international reserves provides a significant financial buffer and contains external pressures associated with imbalances in the foreign exchange market. That said, foreign exchange shortages and a consistent balance-of-payments deficit have contributed to a decline in international reserves to less than $7 billion in December 2019, from a peak of around $12 billion in December 2014. Foreign exchange shortages continue to affect businesses, particularly small and medium-sized businesses, manufacturers and retailers, weighing on growth prospects in the non-energy sector. Despite recurring current account surpluses, financial outflows and significant net errors and omissions have resulted in a balance of payments deficit over the past 5 years.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Environmental risks are derived from carbon transition. Under a scenario of a gradual slowdown and eventually fall in hydrocarbon demand, Trinidad and Tobago's credit profile would face downward pressure, albeit over the longer term. Given the country's small size and location in the Caribbean basin, Trinidad and Tobago is also exposed to regular hurricanes. However, the country lies on the south of the Hurricane belt, and as such is not as exposed as other Caribbean sovereigns.

Social risks carry limited weight in Moody's credit assessment of Trinidad and Tobago. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The outbreak will test the country's welfare infrastructure, but Moody's does not expect social risks to materially impact the credit profile. Although the population is markedly divided by ethnic lines, any potential tensions are channeled institutionally, with political parties prizing social stability.

Governance issues are a key limitation to Trinidad and Tobago's credit profile, as reflected in Moody's institutions and governance strength assessment. Despite meaningful efforts in recent months to improve data reporting, significant data limitations and institutional constraints limit the government's capacity to execute fiscal policy, weakening the sovereign's credit profile.

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

Given the negative outlook, a rating upgrade is unlikely at this time. An improvement in government debt ratios and debt affordability, particularly if supported by an increase in non-energy revenue or improved tax collection rather than asset sales or fiscal buffer drawdowns, would stabilize the outlook and, if sustained, result in an upgrade. Material progress in institutional and economic reforms that increase competitiveness and the economy's shock absorption capacity would also likely result in a higher rating.

Poor prospects for the oil and gas industry, affecting economic growth and straining government finances beyond what is captured in Moody's current baseline, would add negative pressure to the rating. The rating would be downgraded if government debt ratios were to continue their upward trend beyond this year, due to the absence of healthier growth prospects and revenue-enhancing or fiscal adjustment measures aimed at stabilizing the debt ratios over time. The need for mounting government support for state-owned enterprises, resulting in an increase in government debt, would weaken the government's balance sheet and likely result in a downgrade. A weakening of the balance-of-payments position would increase external vulnerability risks over time and could also lead to a downgrade.

GDP per capita (PPP basis, US$): 32,284 (2018 Actual) (also known as Per Capita Income)

Real GDP growth (% change): -0.2% (2018 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 1% (2018 Actual)

Gen. Gov. Financial Balance/GDP: -3.6% (2018 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 5.8% (2018 Actual) (also known as External Balance)

External debt/GDP: 46.8% (2018 Actual)

Economic resiliency: ba3

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 19 May 2020, a rating committee was called to discuss the rating of the Government of Trinidad and Tobago. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially decreased. The issuer's fiscal or financial strength, including its debt profile, has materially decreased. Other views raised included: The issuer's institutions and governance strength, have not materially changed. The issuer's susceptibility to event risks has not materially changed.

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 https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

At least one ESG consideration was material to the credit rating action(s) announced and described above.

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.

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.

Ariane Ortiz-Bollin
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

Yves Lemay
MD - Sovereign/Sub Sovereign
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.
© 2020 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/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S 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 INVESTORS SERVICE 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 INVESTORS SERVICE 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 $2,700,000. 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 JPY125,000 to approximately JPY250,000,000.

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

​​​​​​​​
Moodys.com