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

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

PLEASE READ AND SCROLL DOWN!

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

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

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

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

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

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

I AGREE
Rating Action:

Moody's concludes review of four Swedish banks

08 Sep 2009

Downgrades of LT senior debt and deposit ratings limited to one notch; BFSRs to a maximum of two notches

London, 08 September 2009 -- Moody's Investors Service today downgraded the ratings of four Swedish banks and financial institutions: Nordea Bank AB, Svenska Handelsbanken AB, Swedbank AB and Landshypotek AB.

Moody's downgraded the long-term senior debt and deposit ratings of all these financial entities by one notch, the bank financial strength ratings (BFSRs) of Nordea Bank and Svenska Handelsbanken by two notches and the BFSRs of Swedbank and Landshypotek by one notch. In addition the short-term deposit rating of Landshypotek was downgraded to Prime-2 from Prime-1 while the short-term ratings of all the remaining entities remained unchanged.

The rating actions conclude the review for possible downgrade initiated on 22 July 2009, with the exception of that on Volvofinans Bank AB, which will be concluded separately given the entity's specific profile as a car consumer finance company.

The full list of rating actions and their specific rationale can be found below under the name of each reviewed bank.

Moody's adds that details of the rating actions on Nordea's banking subsidiaries in Denmark, Norway and Finland, which are not included in the above summary, are provided below. The same applies to Swedbank's subsidiaries, Swedbank Mortgage and its Baltic subsidiary Swedbank AS (Estonia).

The rating actions do not affect the government-backed ratings that Moody's assigns to the debt instruments benefiting from the Swedish government guarantee, which remain at Aaa with a stable outlook in line with the ratings of the Swedish government.

Please note that this press release does not deal with the possible implications for the covered bond ratings of Swedish issuers.

Moody's review, during which it carried out a scenario analysis of how expected losses would affect asset quality, earnings and capitalisation, showed that BFSRs would be weakened by further deterioration in the banks' financial performance as a result of the economic downturn (please refer to Moody's Special Comments: "Moody's Approach to Estimating Nordic Banks' Credit Losses", published in July 2009; "Calibrating Bank Ratings in the Context of the Global Financial Crisis", published in February 2009; and "Moody's Approach to Estimating Bank Credit Losses and their Impact on Bank Financial Strength Ratings", published in May 2009). The rating agency's anticipation of deteriorating asset quality primarily reflects the weakening of Sweden's highly export-driven economy. The negative outlook on all the BFSRs reflects the potential for additional macroeconomic deterioration beyond Moody's current expectations.

Moody's says that the smaller size of the downgrades of the long-term debt and deposit ratings than those of the BFSRs were related to its assessment of the probability of systemic support from the Swedish government, given the systemic importance of some of these banks to the domestic banking system.

Further explanation regarding Moody's recalibration framework is provided in Moody's Press Release dated 22 July 2009 where the above mentioned Swedish banks were placed on review.

RATING OF HYBRIDS

For those banks with downgraded hybrids, the magnitude of the downgrade was in line with the magnitude of the downgrade of the senior debt rating and in line with Moody's current methodology. The only exception to this approach was the hybrid ratings of Swedbank AB, which were more closely linked to the bank's baseline credit assessment (BCA, which maps from the BFSR) due to Swedbank's weaker financial profile, as reflected by its BFSR being in the D range, as explained in more detail below.

Moody's published a Request for Comment in July 2009 on its proposed changes to banks' subordinated capital ratings. If implemented in their proposed form, the changes could lead to multi-notch downgrades of hybrids. Please refer to the Request for Comment "Moody's Proposed Changes to Bank Subordinated Capital Ratings" for further details.

RATING ACTIONS IN DETAIL

Moody's has taken the following rating actions:

NORDEA

Moody's downgraded Nordea Bank AB's BFSR to C+ (mapping to an A2 BCA) from B. The outlook on the BFSR is negative. At the same time, the BFSRs of Nordea Bank Danmark and Nordea Bank Norge were downgraded to C (mapping to A3 BCAs) from B-. The outlook on Nordea Bank Danmark's BFSR is negative, while the outlook on Nordea Bank Norge's rating is stable. Nordea Bank Finland's BFSR was downgraded to B- (mapping to an A1 BCA) from B. The outlook on the Finnish subsidiary's BFSR is stable.

The downgrade of Nordea Bank's BFSR reflects the bank's capital position in relation to anticipated losses in the credit portfolio and weakening recurring earnings (pre-provision income in relation to total assets).

Nordea Bank AB's commercial loan portfolio displays some concentration towards commercial real estate and large corporates. Exposure to more risky segments such as shipping and lending to the Baltic area constitutes less than 5%. In addition to these exposures, the bank exhibits concentrated single-name exposure and exposure to private equity. The combination of these factors exerts downward pressure on the bank's Tier 1 capital level, which stood at 9.9% at the end of June 2009 (under transitional rules towards Basel II and excluding interim profits). Earnings are on a downward trend despite solid net interest income. These factors may lead to a BFSR towards the lower end of the C+ range, which is reflected in the negative outlook.

Moody's downgrade of Nordea Bank Danmark's BFSR mainly reflects the anticipated losses on its loan portfolio, notably in relation to Danish agriculture, SME's and larger corporates. Although the anticipated losses are not that high, its low capital level would be pressurised under this scenario and the entity's strength is more in line with that of the lower range of C rated entities, which explains the negative outlook.

Nordea Bank Norge's high exposure to shipping and commercial real estate exerts more pressure on its capital than its earnings can mitigate, leading to the C BFSR. However, its capital level is still better than that of the Danish subsidiary and the rating therefore carries a stable outlook.

Nordea Bank Finland's B- BFSR is one of the highest in the Nordic area, reflecting the high capital ratio that enables the bank to absorb losses under Moody's anticipated scenario. The main risks are the commercial property portfolio, large corporates and the group's Baltic exposure, which are booked in Nordea Bank Finland.

Nordea Bank's debt and deposit ratings were downgraded to Aa2 from Aa1. The ratings of the three subsidiaries, Nordea Bank Danmark, Nordea Bank Finland and Nordea Bank Norge were also downgraded to Aa2 from Aa1, reflecting the high integration of operations, coupled with name and reputation risk and the ability of the group to transfer capital to the subsidiaries if needed. The outlook on all the debt and deposit ratings is stable.

The uplift for Nordea Bank's long-term ratings from its BCA reflects a very high probability of systemic support as a result of its importance to the Swedish financial sector. The uplifts for Nordea Bank Danmark, Nordea Bank Finland and Nordea Bank Norge reflect very high probabilities of parental support combined with very high probabilities of systemic support, given that they are leading banks in their respective countries.

SVENSKA HANDELSBANKEN (SH)

Moody's downgraded SH's BFSR to C+ (mapping to an A2 BCA) from B, with a negative outlook, reflecting the potential of rising credit costs embedded within its loans, in particular its exposure to property management companies. Property management, which includes commercial real estate, comprised a significant 24% of SH's loans at the end of June 2009 and, in Moody's view, the quality of that portfolio could be challenged by the difficult economic conditions. Moody's also remains cautious about the bank's exposure to the overheated property and real estate market in the UK, although it recognises the relatively small size of this exposure compared with the size of its total lending book.

On the positive side, Moody's notes that around one-quarter of SH's total property management portfolio is related to residential developments, which carry a lower risk than pure commercial real estate lenders and that SH's exposure to higher-risk property development projects is minimal.

Moody's review reflected these positive elements as well as the bank's traditionally prudent culture, solid underwriting criteria and relatively stable operating profitability. However, the high likelihood of asset quality deterioration, derived from Moody's scenario analysis, exerts pressure on the bank's credit profile, in particular on its capitalisation, positioning the bank in line with the upper end of the C range. Moody's says that SH's credit profile showed a strong resilience to its base scenario, which is the key ratings determinant, but that there is significant pressure on asset quality and capital adequacy under the more stressed scenario. While such a scenario is less likely than Moody's baseline assumptions, the negative outlook on the BFSR reflects the rating's vulnerability to further deterioration of the operating environment.

Moody's says that SH's debt and deposit ratings were only downgraded by one notch because of the bank's leading position in the Swedish market. As a result of the rating agency's assessment of a very high probability of systemic support for SH on the one hand and the downgrade of the BFSR on the other, the long-term deposit and senior debt ratings were downgraded to Aa2 from Aa1. The outlook on these ratings is stable, reflecting the bank's very high systemic importance and Moody's view that its valuable franchise will remain intact throughout the crisis.

SWEDBANK AB

Moody's downgraded Swedbank's BFSR to D+ (mapping to a Baa3 BCA) from C-, with a negative outlook, reflecting pressure exerted by potential further deterioration in all of Swedbank group's markets, in particular the Baltic States and Ukraine. The credit costs of Swedbank's international exposure have climbed materially over the past year and, in Moody's assessment, will remain high in the near term, continuing to severely weaken the bank's profitability and capitalisation.

Moody's previous rating actions already incorporated expected credit losses from the bank's loan portfolio in Swedbank's ratings. However, given a more severe weakening of macro-economic conditions in the Baltic countries and Ukraine, coupled with worsened economic conditions in Sweden, the rating agency reviewed and further increased its loss expectations (please refer to Moody's Special Comment: "Moody's Approach to Estimating Baltic Bank's Credit Losses", published in August 2009) from its initial expectations and incorporated those revised assumptions into its scenario analysis.

The rating agency says that Swedbank's recent decision to raise a sizeable amount of common equity improves the ability of its capital base to absorb expected losses. However, even taking this into account, Moody's scenario analysis shows that Swedbank's BFSR is better positioned in the D range, given the upward revision of the rating agency's loss assumptions for the bank's Baltic countries credit exposure and the extent of its potential financial deterioration, particularly under Moody's more severe scenario.

The negative outlook on the BFSR reflects the possibility that a more pronounced economic downturn than Moody's currently expects in the bank's main operating markets could have a direct and severe impact on Swedbank's credit quality, further weakening its earnings and capitalisation. Despite the negative rating actions, Moody's notes that the bank, under new senior management, is taking more effective and decisive actions to contain and manage the asset quality downturn and improve the group's organisational and operational efficiency, and that this could, over time, improve the bank's risk profile.

Swedbank's deposit and debt ratings were downgraded to A2 from A1 and continue to receive a sizeable uplift from the weak BCA. This reflects the bank's key systemic importance to the Swedish banking sector and therefore Moody's assessment of a very high probability of systemic support. The ratings also incorporate the challenges that the bank faces in maintaining its leading franchise during the crisis.

Swedbank's hybrid debt was downgraded to Baa2 for the cumulative junior subordinated debt and Ba1 for the non-cumulative Tier 1 securities. The wider notching than under Moody's current methodology reflects the rating agency's observation that Swedbank's weak earnings prospects have increased the risk of coupon deferral, although it believes this risk still remains low. The Tier 1 instrument is rated two notches lower than the cumulative subordinated debt because of its lower ranking in liquidation and the greater loss severity of skipped coupons due to its non-cumulative nature.

The outlook on Swedbank's long-term deposit and debt ratings is negative, in line with the negative outlook on the BFSR.

The ratings of Swedbank AB's two Ukrainian subsidiaries Public Joint Stock Company "Swedbank" (rated B3/B1/NP/E) and its subsidiary Private Joint Stock Company "Swedbank Invest" (rated B3/B1/NP/E) were not changed as a result of the rating action on their parent bank.

SWEDBANK MORTGAGE

As a result of the downgrade of Swedbank's ratings, the senior and dated subordinated ratings of Swedbank Mortgage were downgraded by one notch to A2 and A3.

At the same time, Moody's placed all ratings of Swedbank Mortgage, including its short-term rating of Prime-1, on review for possible downgrade. The review of this entity will now focus on assessing the potential implications for the entity's ratings of the application of Moody's methodology, entitled "Moody's Approach to Rating Financial Entities Specialised in Issuing Covered Bonds", published in August 2009.

Moody's notes that the government-backed short-term P-1 rating that Moody's assigns to the instruments benefiting from the Swedish government guarantee remains unchanged and unaffected by this rating action.

SWEDBANK AS

Moody's downgraded Swedbank AS's BFSR to D- (mapping to a Ba3 BCA) from D, with a negative outlook, reflecting Moody's view that the deterioration in the Baltic operating environment is putting pressure on the bank's financial fundamentals.

Similar to its parent bank, Swedbank AB, Moody's previous rating actions on Swedbank AS already incorporated expected credit losses from the bank's loan portfolio in its ratings. However, the operating environment in the three Baltic countries has deteriorated faster than Moody's previously expected. Therefore, as explained above, the rating agency reviewed its scenario analysis assumptions and further increased its loss expectations (please refer to Moody's Special Comment: "Moody's Approach to Estimating Baltic Bank's Credit Losses", published in August 2009).

The results of Moody's scenario analysis showed that Swedbank AS's key credit drivers, in particular its capital adequacy, became significantly weaker in their respective BFSR categories as a result of the anticipated deterioration in asset quality. Moody's key concerns relate to the bank's exposure to the real estate management and construction sectors, which together accounted for around 17% of the loan portfolio at the end of June 2009. That said, given the weakening operating environment, the rating agency expects all industry sectors to be adversely affected.

The downgrade of Swedbank AS's long-term bank deposit and senior debt ratings to Baa3 reflects the weaker intrinsic financial strength of the bank, as indicated by the D- BFSR as well as the downgrade of its parent. However, Moody's assesses a very high probability of support from its parent and a moderate probability of systemic support, which leads to a three-notch uplift for the deposit and debt ratings from the Ba3 BCA.

Moody's negative outlook on Swedbank AS's ratings reflects the difficult operating environment in the Baltic region.

LANDSHYPOTEK (LH)

Moody's downgraded LH's BFSR to C (mapping to an A3 BCA) from C+. As LH's deposit ratings do not benefit from any uplift as a result of Moody's assessment of the probability of systemic support, the one-notch lowering of the BFSR resulted in a one-notch downgrade of the deposit ratings, to A3/Prime-2 from A2/Prime-1.

The BFSR downgrade reflects Moody's expectation of deterioration in LH's asset quality, driven by the weakening of the Swedish economy. Moody's scenario analysis showed that LH's satisfactory capitalisation and exposure to low-risk agriculture lending to private individuals partly offsets its modest pre-provision profitability (which results in low capital generation ability), and therefore limited the downgrade to one notch.

The rating agency notes that LH's BFSR showed good resilience to the base scenario and considerably higher losses would be needed for the rating to come under further downward pressure. However, Moody's considers that the negative outlook on the BFSR and long-term deposit rating appropriately reflects potential pressure on LH under a worsened macro-economic scenario.

RATING ACTIONS IN SUMMARY

Nordea Bank AB

- BFSR downgraded to C+ from B, with negative outlook;

- Long-term deposit rating downgraded to Aa2 from Aa1, with stable outlook;

- Subordinate ratings downgraded to Aa3 from Aa2, with stable outlook;

- Junior subordinate ratings downgraded to A1 from Aa3, with stable outlook;

- Prime-1 short-term ratings were not affected.

Moody's last rating action on Nordea Bank AB was on 22 July 2009 when the BFSR and long-term ratings were placed on review for possible downgrade.

Nordea Bank Danmark A/S

- BFSR downgraded to C from B-, with negative outlook;

- Long-term deposit rating downgraded to Aa2 from Aa1, with stable outlook;

- Prime-1 short-term ratings were not affected.

Moody's last rating action on Nordea Bank Danmark A/S was on 22 July 2009 when the BFSR and long-term ratings were placed on review for possible downgrade.

Nordea Bank Norge ASA

- BFSR downgraded to C from B-, with stable outlook;

- Long-term deposit rating downgraded to Aa2 from Aa1, with stable outlook;

- Subordinate ratings downgraded to Aa3 from Aa2, with stable outlook;

- Prime-1 short-term ratings were not affected.

Moody's last rating action on Nordea Bank Norge ASA was on 22 July 2009 when the BFSR and long-term ratings were placed on review for possible downgrade.

Nordea Bank Finland Plc

- BFSR downgraded to B- from B, with stable outlook;

- Long-term deposit rating downgraded to Aa2 from Aa1, with stable outlook;

- Subordinate ratings downgraded to Aa3 from Aa2, with stable outlook;

- Prime-1 short-term ratings were not affected.

Moody's last rating action on Nordea Bank Finland Plc was on 22 July 2009 when the BFSR and long-term ratings were placed on review for possible downgrade.

Svenska Handelsbanken

- BFSR downgraded to C+ from B, with negative outlook;

- Long-term deposit and senior unsecured ratings downgraded to Aa2 from Aa1, with stable outlook;

- Subordinated debt rating downgraded to Aa3 from Aa2, with stable outlook;

- Hybrid debt rating downgraded to A1 from Aa3, with stable outlook;

Moody's last rating action on Svenska Handelsbanken AB was on 22 July 2009 when the bank financial strength rating (BFSR) and long-term debt and deposit ratings were placed on review for possible downgrade.

Swedbank AB

- BFSR downgraded to D+ (mapping to a BCA of Baa3) from C-, with negative outlook;

- Long-term deposit and senior unsecured ratings downgraded to A2 from A1, with negative outlook;

- Subordinated debt (Lower Tier 2) downgraded to A3 from A2, with negative outlook;

- Undated junior subordinated debt (Upper Tier 2) downgraded to Baa2 from A2 with negative outlook;

- Non-cumulative perpetual capital securities (Tier 1) downgraded to Ba1 from A3, with negative outlook;

Moody's last rating action on Swedbank AB was on 27 April 2009 when BFSR and long-term debt and deposit ratings were placed on review for possible downgrade.

Swedbank Mortgage AB

- Long-term deposit and senior unsecured ratings downgraded to A2 on review for possible downgrade from A1;

- Dated subordinated debt rating downgraded to A3, on review for possible downgrade, from A2;

- Short-term deposit and other short-term debt ratings Prime-1 on review for possible downgrade.

Moody's last rating action on Swedbank Mortgage AB was on 27 April 2009 when the senior and unsubordinated debt ratings were placed on review for possible downgrade.

Swedbank AS

- BFSR downgraded to D- from D, with negative outlook;

- Long-term deposit and senior unsecured ratings downgraded to Baa3 from Baa2, with negative outlook;

- Subordinated debt rating downgraded to Ba1 from Baa3, with negative outlook;

- Short-term deposit and other short-term debt ratings downgraded to P-3 from P-2.

Moody's last rating action on Swedbank AS was on 27 April 2009 when all the ratings were placed on review for possible downgrade.

Landshypotek AB

- BFSR downgraded to C from C+, with negative outlook;

- Long-term deposit and senior unsecured ratings downgraded to A3 from A2, with negative outlook;

- Short-term deposit rating downgraded to P-2 from P-1.

Moody's last rating action on Landshypotek AB was on 22 July 2009 when all the ratings were placed on review for possible downgrade.

RATING METHODOLOGIES

The principal methodologies used in the above rating actions are "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" published in March 2007 and "Bank Financial Strength Ratings: Global Methodology" published in February 2007, which can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered can also be found in the Rating Methodologies sub-directory on Moody's website.

Headquartered in Stockholm, Sweden, Nordea Bank AB reported total assets of EUR 476 billion at the end of June 2009.

Headquartered in Copenhagen, Denmark, Nordea Bank Danmark A/S reported total assets of DKK1,014 billion (EUR136 billion) at the end of June 2009.

Headquartered in Oslo, Norway, Nordea Bank Norge ASA reported total assets of NOK 536 billion (EUR59 billion) at the end of June 2009.

Headquartered in Helsinki, Finland, Nordea Bank Finland Plc reported total assets of EUR207 billion at the end of June 2009

Headquartered in Stockholm, Sweden, Svenska Handelsbanken AB reported total consolidated assets of SEK2,155 billion (EUR198 billion) as of 30 June 2009.

Headquartered in Stockholm, Sweden, Swedbank AB reported total consolidated assets of SEK1,796 billion (EUR165 billion) as of 30 June 2009.

Headquartered in Stockholm, Sweden, Swedbank Mortgage AB reported total consolidated assets of SEK802 billion (EUR74 billion) as of 30 June 2009.

Headquartered in Tallinn, Estonia, Swedbank AS reported total assets of EEK366 billion (EUR23 billion) as of 30 June 2009.

Headquartered in Stockholm, Sweden, Landshypotek AB reported total consolidated assets of SEK54 billion (EUR4.9 billion) as of 31 March 2009.

London
Reynold R. Leegerstee
Managing Director
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

London
Antonella Pisani
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's concludes review of four Swedish banks
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