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 downgrades Assured Guaranty; lead insurer to A2

17 Jan 2013

New York, January 17, 2013 -- Moody's Investors Service has downgraded the Insurance Financial Strength (IFS) rating of Assured Guaranty Municipal Corp. (AGM) to A2 from Aa3, the IFS rating of Assured Guaranty Corp. (AGC) to A3, from Aa3, and the IFS rating of Assured Guaranty Re Ltd. (AGRe) to Baa1 from A1. In the same rating action, Moody's also downgraded the senior unsecured debt ratings of both Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc., to Baa2, from A3. The outlook for the ratings is stable. A full list of rating actions on Assured Guaranty Ltd. (Assured) and its subsidiaries is provided below. The rating action also has implications for the various transactions wrapped by AGM and AGC as discussed later in this press release.

SUMMARY RATIONALE

"Today's rating action reflects Moody's downward reassessment of Assured's business franchise, expected future profitability, and financial flexibility," said Moody's. "Assured operates in an industry that has not recovered from the financial crisis and, like its peers, will continue to struggle in the face of declining fundamentals, including a dramatic reduction in insurance usage, modest profitability and still-meaningful legacy risk."

While the characteristics of Assured's insured portfolio's credit quality and its capital adequacy generally remain strong (based on the data from September 30, 2012), Assured's positioning on key dimensions of financial strength, namely franchise strength, profitability, and financial flexibility have weakened over time largely as a result of enduring changes in the financial guarantor industry and the broader economic environment as discussed in greater detail in previous Moody's publications.

The combination of these characteristics, along with some residual uncertainty with respect to the potential for outsized losses relative to capital in the existing insured portfolio as well as more general unknowns with respect to future insured portfolio production and capital retention, lead to the overall A2 IFS rating assessment of the lead operating company.

RATING RATIONALE -- ASSURED GUARANTY MUNICIPAL CORP.

We have positioned the IFS rating of Assured Guaranty Municipal Corp. (AGM, formerly Financial Security Assurance Inc.) at A2. As the principal active operating insurer within the Assured group, AGM is a key focus for our analysis of the consolidated group and an important reference point for our ratings of AGC and AGRe, entities whose underwriting profile has been sharply reduced in recent years. Moody's approach to rating the company is outlined in "Moody's Rating Methodology for the Financial Guaranty Insurance Industry", published in September 2006 and as further described in previous reports on the sector, including "Financial Guaranty Insurance: Frequently Asked Questions" (September 2012) and "The Changing Business of Financial Guaranty Insurance" (November 2008). Our methodology centers on an assessment of five key factors (outlined below), focusing on financial and operational metrics that are considered together with qualitative assessments and analyst judgment.

Factor 1: Franchise Value and Strategy -- Moody's assessment of this factor balances AGM's position as the sole active financial guarantor to survive the 2007-2009 US financial crisis intact against the dramatic decline of the industry. Structured finance business, which accounted for a meaningful portion of AGM's pre-crisis activity, has virtually disappeared. The target market for insuring US public finance issuance (now primarily mid-to-low investment grade municipal bonds) has also declined, and is now less than one-third its size in 2006. While AGM benefits from its position as the most active player in a smaller industry, its overall business activity, as measured by the present value of gross premiums written, remains well below pre-crisis levels. The secular narrowing of its business opportunities, and related pressure on value creation result in our low investment-grade (Baa) assessment of this rating factor.

Factor 2: Insurance Portfolio Characteristics -- AGM's insured portfolio is somewhat bifurcated from a risk perspective, with a historically low-loss core municipal book as well as exposure to certain sectors and credits experiencing material credit stress. Based on Assured's internal ratings, the portion of AGM's 3Q2012 insured net par outstanding considered below investment grade was roughly 3.3%. Under Moody's scenario analyses, AGM's credit risk ratio (expected loss) and tail risk ratio (stress case loss) were also consistent with a high investment-grade score for this factor. In developing these estimates, certain adjustments were made to input parameters for Moody's Portfolio Risk Model to account for the 2010 recalibration of Moody's US public finance ratings to the global scale. However, the portfolio does have material exposure to legacy mortgage-related risks, which are highly sensitive to weakness in the macroeconomic environment, and large risks among individual municipal credits. We therefore consider the company's portfolio characteristics score to be in the A rating range.

Factor 3: Capital Adequacy --Our assessment of AGM's point-in-time capital adequacy is very strong, reflecting the relative emphasis on municipal risks as well as loss-mitigation activities related to RMBS. Based on our base case estimated loss distribution, AGM holds claims-paying resources sufficient to cover losses at a confidence level corresponding to a high Aa score. In this analysis, insured RMBS and certain other stressed exposures are excluded from our Portfolio Risk Model, in order to allow for a separate detailed loss assessment of those transactions. Potential losses estimated for these stressed exposures are then combined with the modeled losses on remaining exposures to derive an aggregate loss distribution for the overall portfolio. However, estimates of capitalization can vary considerably based on underlying assumptions about default probability, loss-given default, and correlation. This kind of variability leads us to assess capitalization somewhat more conservatively than modeling might suggest, but still in the Aa range for this factor.

Factor 4: Profitability -- AGM sustained large losses during the financial crisis as a result of claims related to mortgage securitizations. However, profitability has rebounded in recent periods. For the three years ended December 31, 2011, AGM recorded an average statutory return on equity of 15.7%, aided by representation and warranties recoveries from mortgage originators and sponsors of RMBS. Profitability has also been enhanced by large opportunistic purchases of AGM-insured RMBS securities at deep discounts, which are financially beneficial but suggest a lack of investor confidence. Evaluated over longer time horizons, however, profitability has weakened notably, with 5-year and 10-year average statutory returns on equity at 0.5% and 6.8%, respectively, which lags those of its specialty insurance and reinsurance peers and, given the low levels of new business production, we believe AGM's profitability will remain under pressure. Consequently, Moody's views AGM's profitability to be consistent with a score in the single-A range.

Factor 5: Financial Flexibility -- AGM's financial leverage is characterized by a relatively modest debt load, and operating earnings coverage has been relatively strong over the past three years. As with profitability, however, earnings coverage is weaker when a longer time frame (e.g. five years) is considered. More importantly, in our view, various market indicators (such as the firm's low stock price relative to operating book value per share, and its elevated CDS spreads) suggest that the firm's financial flexibility in accessing new funds on a cost-effective basis could be quite constrained. For these reasons, we score AGM's financial flexibility in the Baa range.

WHAT COULD CHANGE THE RATING UP OR DOWN

The main rating sensitivities for AGM relate to the composition and performance of its insured portfolio as well as its capitalization and market support. The rating could be lowered if the quality of its insured portfolio meaningfully decreased or capital was withdrawn without an associated reduction of risk, or if profitability reduced materially. The rating could be upgraded if there were a significant rebound in business origination at attractive pricing levels and financial flexibility improved. However, fundamental challenges inherent in the business model make a return to the Aa rating level unlikely.

The A2 IFS ratings of Assured Guaranty (Bermuda) Ltd. and Assured Guaranty (Europe) Ltd. reflect a combination of formal and implicit support from AGM. The Baa2(hyb) ratings of Sutton Capital Trusts I-IV reflect the subordinated nature of the perpetual preferred stock of AGM that can be delivered to the trusts; AGM has an option to sell such securities to the Trusts at its sole discretion at any time.

RATING RATIONALE -- ASSURED GUARANTY CORP.

The A3 IFS ratings of Assured Guaranty Corp. (AGC) and its supported affiliate, Assured Guaranty (UK) Ltd., are positioned one notch below the A2 IFS rating of AGM reflecting its more limited stand alone franchise, as well as its weaker capital profile, insurance portfolio characteristics and profitability metrics. The Baa3(hyb) ratings of Woodbourne Capital Trusts I-IV reflect the subordinated nature of the perpetual preferred stock of AGC that can be delivered to the trusts; AGC has an option to sell such securities to the Trusts at its sole discretion at any time. Rating sensitivities for AGC are similar to those described above for AGM.

RATING RATIONALE -- ASSURED GUARANTY RE

The Baa1 IFS rating of Assured Guaranty Re Ltd. and its supported subsidiaries, Assured Guaranty Re Overseas Ltd. and Assured Guaranty Mortgage Insurance Company, is one notch below the A3 IFS rating of AGC and two notches below the A2 IFS rating of AGM and reflects its limited independent franchise, its weaker relative capital profile, the more flexible Bermudian regulatory environment relative to the U.S., and its role as internal group reinsurer, optimizing the risk profile of its affiliated primary insurance writers. Rating sensitivities for AGRe are similar to those described above for AGM and AGC.

RATING RATIONALE -- SENIOR DEBT AND ISSUER RATINGS

The Baa2 senior unsecured debt rating of Assured Guaranty Municipal Holdings Inc. (AGM Holdings) is positioned at three notches below the IFS rating of its core operating subsidiaries to reflect the structural subordination of the parent companies relative to the operating companies. The three notch difference between AGM and AGM Holdings reflects the typical notching practice for U.S. insurance holding company structures.

The Baa2 senior unsecured debt rating of Assured Guaranty US Holdings Inc. (AG US Holdings) is aligned with that of AGM Holdings, reflecting its access to the financial resources of AGC, as well as subordinated access to those of AGM Holdings. The debt of AG US Holdings also benefits from a guarantee from Assured Guaranty Ltd.

The Baa2 issuer rating of Assured Guaranty Ltd. reflects its status as the ultimate parent company of the group with direct access to dividends from Assured Guaranty Re, which has substantial dividend capacity, as well as subordinated access to the resources of both AGM and AGC through intermediate holding companies. The provisional ratings of Assured Guaranty Capital Trusts I and II are aligned with the provisional subordinated debt ratings of their sponsor, Assured Guaranty Ltd.

The primary rating sensitivity of AGM Holdings, AG US Holdings and Assured Guaranty Ltd. is to the financial strength of the underlying operating companies and thus their ratings are likely to be positively/negatively impacted by upgrades/downgrades at AGM, AGC and AGRe.

RATINGS LIST

Issuer: Assured Guaranty (Bermuda) Ltd.

..Downgrades:

....Insurance Financial Strength, Downgraded to A2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty (Europe) Ltd.

..Downgrades:

....Insurance Financial Strength, Downgraded to A2 from Aa3

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty (UK) Ltd

..Downgrades:

....Insurance Financial Strength, Downgraded to A3 from Aa3

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Capital Trust I

..Downgrades:

....Pref. Stock Shelf, Downgraded to (P)Baa3 from (P)Baa1

..Outlook Actions:

....Outlook, Changed To Stable

Issuer: Assured Guaranty Capital Trust II

..Downgrades:

....Pref. Stock Shelf, Downgraded to (P)Baa3 from (P)Baa1

..Outlook Actions:

....Outlook, Changed To Stable

Issuer: Assured Guaranty Corp

..Downgrades:

....Insurance Financial Strength, Downgraded to A3 from Aa3

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Ltd.

..Downgrades:

.... Issuer Rating, Downgraded to Baa2 from A3

....Multiple Seniority Shelf, Downgraded to (P)Baa2 from (P)A3

....Multiple Seniority Shelf, Downgraded to (P)Ba1 from (P)Baa2

....Multiple Seniority Shelf, Downgraded to (P)Baa3 from (P)Baa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Mortgage Insurance Company

..Downgrades:

....Insurance Financial Strength, Downgraded to Baa1 from A1

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Municipal Corp.

..Downgrades:

....Insurance Financial Strength, Downgraded to A2 from Aa3

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Municipal Holdings Inc.

..Downgrades:

....Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 (hyb) from Baa1 (hyb)

....Multiple Seniority Shelf, Downgraded to (P)Baa2 from (P)A3

....Multiple Seniority Shelf, Downgraded to (P)Baa2 from (P)A3

....Multiple Seniority Shelf, Downgraded to (P)Ba1 from (P)Baa2

....Multiple Seniority Shelf, Downgraded to (P)Ba1 from (P)Baa2

....Multiple Seniority Shelf, Downgraded to (P)Baa3 from (P)Baa1

....Multiple Seniority Shelf, Downgraded to (P)Baa3 from (P)Baa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from A3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from A3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from A3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Re Ltd.

..Downgrades:

....Insurance Financial Strength, Downgraded to Baa1 from A1

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty Re Overseas Ltd.

..Downgrades:

....Insurance Financial Strength, Downgraded to Baa1 from A1

....Outlook, Changed To Stable From Rating Under Review

Issuer: Assured Guaranty US Holdings, Inc.

..Downgrades:

....Junior Subordinated Regular Bond/Debenture, Downgraded to Baa3 (hyb) from Baa1 (hyb)

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from A3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from A3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Sutton Capital Trust I

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa2 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Sutton Capital Trust II

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa2 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Sutton Capital Trust III

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa2 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Sutton Capital Trust IV

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa2 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Woodbourne Capital Trust I

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa3 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Woodbourne Capital Trust II

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa3 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Woodbourne Capital Trust III

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa3 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Woodbourne Capital Trust IV

..Downgrades:

....Pref. Stock Non-cumulative Preferred Stock, Downgraded to Baa3 (hyb) from A3 (hyb)

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

TREATMENT OF WRAPPED TRANSACTIONS

Moody's ratings on securities that are guaranteed or "wrapped" by a financial guarantor are generally maintained at a level equal to the higher of the following: a) the rating of the guarantor (if rated at the investment grade level); or b) the published underlying rating (and for structured securities, the published or unpublished underlying rating). Moody's approach to rating wrapped transactions is outlined in Moody's special comment "Assignment of Wrapped Ratings When Financial Guarantor Falls Below Investment Grade" (May, 2008); and Moody's November 10, 2008 announcement "Moody's Modifies Approach to Rating Structured Finance Securities Wrapped by Financial Guarantors".

As a result of today's rating action, the Moody's-rated securities that are guaranteed or "wrapped" by AGC or AGM are also downgraded, except those with equal or higher published underlying ratings (and for structured finance securities, except those with equal or higher published or unpublished underlying ratings). For more information on affected credits please refer to the Financial Institutions page at www.moodys.com/fig.

The principal methodology used in these ratings was Moody's Rating Methodology for the Financial Guaranty Insurance Industry published in September 2006. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular 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 rating action, and whose ratings may change as a result of this 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.

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.

James Eck
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Stanislas Rouyer
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's downgrades Assured Guaranty; lead insurer to A2
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S 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 OR MOODY’S 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.

CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

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

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

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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

​​​​
Moodys.com