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
Вы переходите с русскоязычного сайта Moody's на международный сайт Moody's на английском языке. Продолжить?
Больше не показывать данное сообщение
Да
Нет
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 confirms ratings of Industrial Bank of Korea and IBK Securities with a stable outlook, concludes review for downgrade

 The document has been translated in other languages

05 Aug 2020

Hong Kong, August 05, 2020 -- Moody's Investors Service has confirmed Industrial Bank of Korea's (IBK) Baseline Credit Assessment (BCA) and Adjusted BCA of baa2. At the same time, Moody's has confirmed IBK's foreign currency preferred stock non-cumulative MTN rating of (P)Ba2 and foreign currency preferred stock non-cumulative rating of Ba2 (hyb).

The rating outlook on IBK is stable.

At the same time, Moody's has confirmed the A1 foreign currency long-term issuer rating and P-1 short-term issuer rating of IBK Securities Co., Ltd. (IBKS), and changed the outlook to stable from ratings under review.

Today's rating action concludes the review for downgrade initiated on 24 March 2020.

A list of all affected ratings and assessments is provided at the end of this press release.

RATINGS RATIONALE

Industrial Bank of Korea

The confirmation of IBK's ratings and assessments takes into account Moody's expectation that (1) asset quality will remain relatively stable; (2) economic capitalization will recover in the next 2-3 years after a temporary deterioration, because loan growth should normalize from the second half of 2020; and (3) earnings will remain low but stable without a significant increase in credit costs.

The negative impact from lower global demand and domestic consumption has been somewhat offset by the substantial liquidity support provided by the Korean government (Aa2 stable) via fiscal and financial policies to aid small and medium-sized enterprises (SME) and other borrowers affected by the coronavirus pandemic. For example, IBK offered new loans, maturity extensions and reduced interest rates to borrowers directly affected by the outbreak on its existing loans and guarantees. Fiscal policy measures included a supplementary budget to support hospitals, businesses and low-income households. The Bank of Korea also cut its base rate to a historically low level, lowering funding costs for SMEs and sole proprietor business loan borrowers. These measures in turn supports the asset quality and profitability of IBK which has high exposures to SMEs at 79% of its total loans.

Moody's does not expect a material asset quality deterioration even after the expiration of above support measures because around 80% of IBK's SME loan portfolio was secured by either collateral or credit guarantees, as of the end of June 2020. Additionally, a gradual recovery in global demand and lower debt servicing burden amid a low interest rate environment will also support IBK's asset quality.

Finally, despite the Financial Services Commission's easing of regulatory funding and liquidity requirements, Moody's expects the banks to keep their funding and liquidity stable at levels close to the original regulatory requirements, because the relaxation is only temporary until the end of June 2021.

The stable outlook reflects the reduced downside risk facing IBK relative to Moody's earlier expectation when it placed the bank's ratings under review for downgrade in March 2020. IBK's current BCA well-captures Moody's expectation that its financial metrics will remain broadly stable over the next 12-18 months. Nevertheless, a key downside risk to the stable outlook is that of prolonged disruptions to domestic and external activity related to the coronavirus pandemic, which would pressure asset quality and profitability.

IBK's baa2 BCA reflects its (1) stable funding profile; (2) adequate asset quality, which is in line with the Korean banking system average; and (3) weak capitalization when compared to the industry average, although supported by a series of capital injections from the Korean government. The Korean government injected KRW676.5 billion in April 2020, KRW107.8 billion in June 2020, and KRW484.5 billion in July 2020.

Its Adjusted BCA, which incorporates no affiliate support, is at the same level as its BCA.

IBK's Aa2 rating incorporates a six-notch uplift from its BCA of baa2. This uplift is based on the strong links between the bank and the Korean government (Aa2 stable), given IBK's role as a policy bank. In the context of Moody's Banks Methodology, Moody's applies a "government-backed" level of support to IBK's ratings based on (1) a de facto deficiency guarantee under Article 43 of the IBK Act; (2) the government's majority ownership of the bank; and (3) the bank's important policy mandate to support Korea's SMEs, new industries and the high-tech sector.

IBK's long-term/short-term counterparty risk ratings (CRR) are positioned at Aa2/P-1, and the bank's long-term/short-term counterparty risk assessment (CRA) is positioned at Aa2(cr)/P-1(cr). Korea does not have an operational bank resolution regime. Moody's therefore applies a basic Loss Given Failure approach in rating Korean banks. The starting point for the CRR and CRA are one notch above the bank's Adjusted BCA, to which Moody's then adds the government support uplift. The CRR and CRA benefit from five notches of government support.

IBK Securities Co., Ltd. (IBKS)

The confirmation of IBKS' issuer ratings reflect Moody's assessment that the ability of its parent -- IBK -- to support the bank will remain intact. This is reflected in a one-notch uplift incorporated in IBKS' issuer rating on a very high level of affiliate support from IBK.

At the same time, the confirmation of IBKS' ratings takes into account (1) Moody's expectation of slower risk asset growth as a result of various prudential regulatory measures recently implemented or under discussion by the Financial Supervisory Service; (2) the company's stable liquidity and funding position maintained through the recent market volatility in March and April; and (3) its relatively stable profitability even amid the coronavirus-led market volatility.

New regulations that were introduced to reign in risk-taking by securities firms include: (1) regulations effective since July to limit securities firms' contingent liabilities stemming from real estate projects; and (2) guidelines that mandate stricter internal controls on the sale of complex investment products such as private equity funds and structured financial products. In addition, regulators have also announced plans to enhance monitoring of key risk areas such as equity linked securities (ELS).

The company's assigned standalone assessment of Baa3 reflects its (1) strong funding profile and relatively low leverage among its rated Korean peers because of available credit lines from Korea Securities Finance Corporation (KSFC, Aa2 stable); (2) modest earnings and stable earnings volatility; and (3) relatively lower risk appetite compared to the larger securities firms we rate given its limited exposure to internally hedged equity linked securities (ELS) and its holdings of high quality bond portfolio. Offsetting this is the risk from the firm's concentrated exposures to contingent liabilities such as corporate guarantees and real estate projects which is large relative to its small equity base.

IBKS' issuer ratings incorporate a four-notch uplift based on Moody's expectation of a very high level of government support via its parent IBK, in times of need. This reflects Moody's view that IBKS plays a vital role in executing IBK and the government's policy initiatives of supporting Korea's SME sector.

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

WHAT COULD MOVE THE RATINGS UP - IBK

IBK's long-term senior unsecured debt ratings are currently placed at Aa2, in line with the government's rating of Aa2. Therefore, an upgrade of IBK's ratings is unlikely unless the government's rating is upgraded.

IBK's BCA could be upgraded if (1) its tangible common equity (TCE) capital ratio exceeds 11.0%; (2) the three-year average of its net income/tangible assets exceeds 1.5%, without any sustained deterioration in its asset quality.

WHAT COULD MOVE THE RATINGS DOWN - IBK

IBK's ratings may be downgraded if (1) the government support clause in the IBK Act is weakened and the bank's importance to the government is weakened, or (2) if the government's rating is downgraded.

IBK's BCA could be downgraded if (1) its TCE capital ratio falls below 9.5%; (2) the three-year average of its net income/tangible assets falls below 0.5% on a sustained basis because of a sharp increase in credit losses; (3) its problem loan ratio rises above 2.0%.

WHAT COULD MOVE THE RATINGS UP - IBKS

IBK Securities' ratings could be upgraded if (1) IBK's rating is upgraded, or if there is more explicit support from IBK or the government; (2) a combination of an improvement in the company's liquidity profile, less volatile profitability, and an increase in its long-term funding, on a sustained basis.

WHAT COULD MOVE THE RATINGS DOWN - IBKS

Moody's could downgrade ratings if (1) the willingness and ability of the government to provide support weaken, (2) the strategic importance of IBKS to IBK weakens, and (3) the status of IBK as a policy bank changes.

Moreover, any indications of control or risk management failures, a marked increase in IBK Securities' risk appetite, or a sharp increase in earnings volatility could put downward pressure on the company's standalone assessment. Nevertheless, Moody's notes that the impact of such a development on its ratings could be limited, due to the high likelihood of affiliate and government support.

The principal methodology used in rating Industrial Bank of Korea was Banks Methodology published in Novemnber 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865. The principal methodology used in rating IBK Securities Co., Ltd. was Securities Industry Market Makers Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187332. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

Industrial Bank of Korea is headquartered in Seoul with total assets of KRW322.1 trillion (USD264.6 billion) at the end of March 2020.

IBK Securities Co., Ltd., is headquartered in Seoul and reported total consolidated assets of KRW4.8 trillion ($4.0 billion) at the end of March 2020.

LIST OF AFFECTED RATINGS

..Issuer: Industrial Bank of Korea (Lead Analyst: Tae Jong Ok)

.... Adjusted Baseline Credit Assessment, Confirmed at baa2

.... Baseline Credit Assessment, Confirmed at baa2

.... Pref. Stock Non-cumulative MTN (Foreign Currency), Confirmed at (P)Ba2

.... Pref. Stock Non-cumulative (Foreign Currency), Confirmed at Ba2 (hyb)

..Issuer: IBK Securities Co., Ltd. (Lead Analyst: Young Kim)

.... Long-term Issuer Rating (Foreign Currency), Confirmed at A1

.... Short-term Issuer Rating (Foreign Currency), Confirmed at P-1

.... Outlook, Changed to Stable from Ratings under Review

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.

Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entities are participating and the rated entities or their agent(s) generally provide Moody's with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody's Policy for Designating Non-Participating Rated Entities.

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.

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

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

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

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

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

Tae Jong Ok
Asst Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Sophia Lee, CFA
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

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

No Related Data.
© 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.

​​​​​​​​