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
Você está prestes a deixar o site local do Brasil e será direcionado ao site global. Deseja continuar?
Não exibir esta mensagem novamente
Sim
Não
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 the deposit ratings of five South African banks following the downgrade of the South African sovereign

24 Nov 2020

Moody's has also affirmed the NSR long-term bank deposit ratings of the five banks

Limassol, November 24, 2020 -- Moody's Investors Service ("Moody's") has today downgraded to Ba2 from Ba1 the long-term local and foreign currency deposit ratings of the five largest South African banks: The Standard Bank of South Africa Limited (SBSA), FirstRand Bank Limited (FRB), ABSA Bank Limited (ABSA), Nedbank Limited (Nedbank) and Investec Bank Ltd. (IBL). The rating agency has also downgraded to Ba3 from Ba2 the long-term issuer ratings of two South African holding companies: Standard Bank Group Limited (SBG) and Absa Group Limited. Moody's maintains a negative outlook on the above seven entities.

Moody's has also affirmed the Ba2 long-term local currency deposit rating and the Ba3 long-term foreign currency deposit rating of First National Bank of Namibia Limited (FNB Namibia), the Namibia-based subsidiary of South Africa-based FirstRand Limited (the holding company of FRB). The outlook on FNB Namibia's long-term ratings remains negative.

Today's rating actions on the five South African banks reflect (i) the deterioration in the creditworthiness of the South African sovereign, as indicated by the downgrade of the Government of South Africa's issuer rating to Ba2 from Ba1. The weakening in the sovereign's credit profile has direct implications for the banks given their significant holding of sovereign securities on their balance sheets; and (ii) the gradual weakening of the banks' standalone credit profiles as the coronavirus pandemic exacerbates an already challenging operating environment in South Africa.

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL436573 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

-- DOWNGRADES OF DEPOSIT RATINGS REFLECT DETERIORATION OF THE SOVEREIGN'S CREDITWORTHINESS ALONG WITH WEAKENING STANDALONE PROFILES

One driver for the rating action on the five South African banks is the deterioration in the creditworthiness of the South African sovereign, as indicated by the downgrade of the Government of South Africa's issuer rating to Ba2. The weakening in the sovereign's credit profile has implications for the banks given the interlinkages between the sovereign's creditworthiness and the banks' balance sheets. The big five South African banks' direct and indirect exposure to the sovereign (including loans to state-related entities) increased to 200% of their combined capital base as of June 2020, from 176% as of December 2019.

The downgrade in South Africa's sovereign rating reflects the further expected weakening in South Africa's fiscal strength over the medium term. The pandemic shock will increase the debt burden and intensify the country's economic challenges and the social obstacles to reforms. The crisis will leave long-term scars on South Africa's fiscal position principally through two channels: a severe loss in revenue of about 5% of GDP, which the government cannot fully and quickly compensate through spending cuts, and which will take time to recover; and rising borrowing costs. Please see "Moody's downgrades South Africa's ratings to Ba2, maintains negative outlook"; (https://www.moodys.com/research/--PR_436182).

Another driver for today's rating action is the gradual weakening of the banks' standalone credit profiles as the coronavirus pandemic exacerbates an already challenging operating environment in South Africa. Moody's expects the banks' asset quality to deteriorate materially - systemwide problem loans over gross loans have already increased to 5.0% in September 2020 from 3.9% in December 2019 and we expect a further deterioration over the next 12 months. Profitability also remains under pressure with the systemwide return on assets declining to 0.62% during the 12 months ending September 2020 compared to 1.2% in 2019 as a result of increasing provisioning.

More positively, the rating agency expects the South African banks to continue to maintain solid capital buffers (systemwide CET1 ratio was 12.3% as of September 2020), along with sound funding and liquidity. Systemwide gross loans to deposit ratio was also healthy at 89%, while the systemwide liquidity coverage ratio (LCR) was 147.4% as of September 2020.

In terms of governance considerations, Moody's does not have any particular governance concern for South African banks.

Details of how these drivers affect the banks' ratings are given in the bank specific sections below.

-- NEGATIVE OUTLOOKS REFLECT THE NEGATIVE OUTLOOK ON THE SOVEREIGN RATING

The negative outlook on the South African issuers' long-term ratings reflects the negative outlook on the sovereign rating, which signals potential weakening in the South African government's credit strength, to which the South African banks are exposed.

The negative outlook on the sovereign rating reflects the risks that the debt burden and debt affordability could deteriorate significantly more than Moody's currently projects. This partly reflects downside risks to both growth and the fiscal consolidation, even if modest, assumed in the baseline. It also reflects the potential for further financial demands from state-owned enterprises or for higher interest rates given possible shocks to confidence.

NATIONAL SCALE RATINGS (NSR)

The NSR bank deposit ratings for the banks were affirmed as a result of a recalibration of South Africa's NSR mappings, triggered by the downgrade of South Africa's government bond rating. Moody's NSRs are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks.

-- BANK-BY-BANK SUMMARY OF ACTIONS

- The Standard Bank of South Africa Limited (SBSA) and Standard Bank Group Limited (SBG)

Moody's downgraded SBSA's long-term deposit ratings to Ba2 from Ba1 and downgraded its BCA to ba2 from ba1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The downgrade of SBSA's BCA to ba2 from ba1 reflects the expected weakening in the bank's asset quality (problem loans over gross loans increased to 5.2% in June 2020 from 3.9% in December 2019), combined with pressured profitability due to elevated provisioning. The bank's net income over tangible assets declined to 0.04% in H1 2020 from 1.5% in 2019. More positively the ba2 BCA also reflects the bank's robust risk-management, combined with sound capital buffers (reported CET1 ratio was 11.4% as of June 2020). The rating agency also expects the bank to continue to maintain solid funding and liquidity (LCR was 117.2% as of June 2020).

Moody's downgraded SBG's long-term issuer ratings to Ba3 from Ba2, with SBG's issuer rating remaining positioned one notch lower than the deposit ratings of SBSA. The one-notch downward adjustment reflects the non-operational nature of SBG (a holding company), which results in the structural subordination of SBG's unsecured creditors to the creditors of SBSA.

- FirstRand Bank Limited (FRB)

Moody's downgraded FRB's long-term deposit ratings to Ba2 from Ba1 and downgraded its BCA to ba2 from ba1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The downgrade of FRB's BCA to ba2 from ba1 reflects the expected weakening in the bank's asset quality (problem loans over gross loans increased to 5.2% in June 2020 from 4.2% in December 2019), amid increasingly challenging operating conditions. More positively the ba2 BCA also captures the bank's strong franchise, which underpins solid profitability levels that are higher than local peers. The bank's net income over tangible assets declined to 1.1% in FY 2020 from 1.8% in 2019. The BCA also takes into account the bank's solid capital buffers (reported CET1 ratio was 12.3% as of June 2020, higher than most local peers), along with continued solid funding and liquidity (LCR was 124% as of June 2020).

- ABSA Bank Limited (ABSA) and Absa Group Limited (Absa Group)

Moody's downgraded ABSA's long-term deposit ratings to Ba2 from Ba1 and downgraded its BCA to ba2 from ba1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The downgrade of ABSA's BCA to ba2 from ba1 reflects the on-going challenging operating conditions, which have resulted in a weakening of the bank's asset quality metrics (problem loans over gross loans increased to 5.7% in June 2020 from 4.5% in December 2019), combined with pressured profitability due to elevated provisioning. The bank's net income over tangible assets declined to a negative 0.3% in H1 2020 from 0.7% in 2019. More positively the ba2 BCA also captures ABSA's sound risk management and adequate capital buffers, combined with solid funding and high liquidity buffers.

Moody's downgraded Absa Group's long-term issuer ratings to Ba3 from Ba2, with Absa Group's issuer rating positioned one notch lower than the deposit ratings of ABSA. The one-notch downward adjustment reflects the non-operational nature of Absa Group (a holding company), which results in the structural subordination of Absa Group's unsecured creditors to the creditors of ABSA.

- Nedbank Limited (Nedbank)

Moody's downgraded Nedbank's long-term deposit ratings to Ba2 from Ba1 and downgraded its BCA to ba2 from ba1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The downgrade of Nedbank's BCA ba2 from ba1 reflects the on-going challenging operating conditions and weakening in the bank's asset quality (problem loans over gross loans increased to 4.6% in June 2020 from 3.3% in December 2019), combined with pressured profitability due to elevated provisioning. The bank's net income over tangible assets declined to 0.3% in H1 2020 from 0.9% in 2019. More positively the ba2 BCA also captures the bank's solid local franchise, combined with adequate capital buffers and continued solid funding and liquidity (LCR was 117% as of June 2020).

- Investec Bank Ltd. (IBL)

Moody's downgraded IBL's long-term deposit ratings to Ba2 from Ba1 and downgraded its BCA to ba2 from ba1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The downgrade of IBL's BCA to ba2 from ba1 reflects the on-going challenging operating conditions that pressure the bank's asset quality and profitability metrics, with the bank's net income over tangible assets declining to 0.5% for the year-ended March 2020 (March 2019: 1.0%). More positively the ba2 BCA also captures the bank's solid capitalisation (reported CET1 ratio was 12.9% as of September 2020) and its sound risk management and primary focus on high net worth individuals, which help mitigate rising asset quality pressures. In addition, Moody's expects the bank to continue to maintain solid funding and liquidity (IBL's consolidated LCR was 164.1% as of September 2020).

- First National Bank of Namibia Limited (FNB Namibia)

Moody's affirmed the long-term deposit ratings and BCA of FNB Namibia.

The affirmation of FNB Namibia's Ba2 local currency deposit rating reflects the affirmation of the bank's ba3 BCA, combined with the incorporation of one notch of government support uplift based on Moody's assumption of a high likelihood of support from the Government of Namibia (Ba2 negative) in case of need.

Following the downgrade in the ratings of South Africa-based FirstRand Bank Limited (FRB), the very high likelihood of parental support from FirstRand Limited to FNB Namibia now translates into zero notch of government support uplift from the bank's ba3 BCA (compared to one notch previously).

At the same time, the high likelihood of government support now translates into one notch of government support uplift from the bank's ba3 BCA (compared to zero notch previously). The high likelihood of government support reflects the bank's systemic importance to the local financial system.

The affirmation of FNB Namibia's Ba3 foreign currency deposit rating continues to reflect the cap from the relevant foreign currency ceiling.

FNB Namibia's BCA of ba3 reflects the expected weakening in the bank's asset quality (problem loans over gross loans increased to 4.4% in June 2020 from 3.3% in December 2019), amid challenging operating conditions due to the coronavirus pandemic. The ba3 BCA also captures the bank's robust capital (reported CET1 ratio was 15.2% as of June 2020), combined with solid funding and liquidity.

The negative outlook on FNB Namibia's long-term deposit ratings is aligned with the negative outlook on the Namibian sovereign's issuer rating.

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

Upwards pressure on the South African banks' long-term foreign currency ratings is limited given the negative outlook. Nonetheless, a higher sovereign rating could lead to upwards pressure on the banks' ratings.

Upwards pressure on FNB Namibia's ratings is limited given the negative outlook. Nonetheless, a higher sovereign rating could lead to upwards pressure on the banks' ratings.

Conversely, any deterioration in the creditworthiness of South Africa would exert downward pressure on South African banks' ratings. In addition banks' ratings could be downgraded in case of a material deterioration in the banks' solvency and liquidity.

Downward pressure on FNB Namibia's ratings could develop through a deterioration in the Namibian sovereign's credit profile, or a material deterioration in the bank's solvency and liquidity.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1147865. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons, please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1216309.

The local market analyst for FirstRand Bank Limited, The Standard Bank of South Africa Limited, Standard Bank Group Limited, First National Bank of Namibia Limited ratings is Mik Kabeya, +971 (423) 795-90.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings announced here are a mix of solicited and unsolicited credit ratings. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link htthttps://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL436573 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items:

• Endorsement

• Rating Solicitation

• Issuer Participation

• Participation: Access to Management

• Participation: Access to Internal Documents

• Disclosure to Rated Entity

• Lead Analyst

• Releasing Office

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.

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 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.

The relevant office for each credit rating is identified in "Debt/deal box" on the Ratings tab in the Debt/Deal List section of each issuer/entity page of the website.

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.

Constantinos Kypreos
Senior Vice President
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2021 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 CREDIT RATINGS AFFILIATES ARE THEIR 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 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 APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S 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 $5,000,000. 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 JPY550,000,000.

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