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
Sie sind im Begriff, von der lokalen Website für Deutschland auf die globale Website in englischer Sprache zu wechseln. Möchten Sie fortfahren?
Diesen Hinweis nicht wieder anzeigen.
Ja
Nein
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 three Lebanese banks' ratings to Caa1 stable

23 Jan 2019

Rating action follows downgrade of Lebanese sovereign rating to Caa1 stable

Limassol, January 23, 2019 -- Moody's Investors Service (Moody's) has today downgraded to Caa1 from B3 the long-term deposit ratings of Bank Audi S.A.L. (Bank Audi), BLOM BANK S.A.L. (BLOM Bank) and Byblos Bank S.A.L. (Byblos Bank). Concurrently, Moody's downgraded the banks' Baseline Credit Assessments (BCA) and Adjusted BCAs to caa1 from b3, their long-term Counterparty Risk Ratings to B3 from B2, their Counterparty Risk Assessments (CR Assessment) to B3(cr) from B2(cr) and BLOM Bank's long-term foreign currency deposit certificates to Caa1 from B3. Moody's also downgraded the banks' national scale ratings (NSRs) for deposits to Baa3.lb/LB-3 from A3.lb/LB-2 and their NSR Counterparty Risk Ratings to A3.lb/LB-2 from Aa3.lb/ LB-1. At the same time the rating agency affirmed the banks' short-term deposit and Counterparty Risk Ratings at Not Prime and the short-term CR Assessment at NP(cr).

The outlook on the long-term deposit ratings and NSRs has changed to stable from negative. The outlook on BLOM Bank's deposit certificates is also assigned as stable.

Today's action follows Moody's decision on 21 January 2019 to downgrade the Government of Lebanon's issuer rating to Caa1 from B3 (please see "Moody's downgrades Lebanon's rating to Caa1, changes outlook to stable", http://www.moodys.com/viewresearchdoc.aspx?docid=PR_393771 ). The banks' rating actions reflect Moody's view that the government's weakened creditworthiness (reflected in sovereign rating downgrade) weighs on the credit profile of the three banks given the high interlinkages between their balance sheets and sovereign credit risk.

A full list of affected ratings and assessments is provided towards the end of this press release.

RATINGS RATIONALE

-- RATINGS DOWNGRADE

The downgrade of the three Lebanese banks' deposit ratings to Caa1 reflects the downgrade of the Government of Lebanon's rating to Caa1. All three banks have high exposure to the Lebanese sovereign that is multiple times their equity, through holdings of government securities and placements at the central bank of Lebanon (Banque du Liban, BdL). According to Moody's, this exposure links the banks' creditworthiness with that of the heavily-indebted Lebanese government, constraining their ratings, while also exposing the banks to liquidity and interest rate risks. Furthermore, all three banks have substantial exposure to the challenging Lebanese operating environment, despite varying levels of geographical diversification, which also indirectly exposes them to sovereign event risk.

Moody's decision to downgrade Lebanon's sovereign rating to Caa1 reflects the rating agency's assessment that the probability has increased that a new government, once one is formed, may take measures aimed at reducing Lebanon's very large gross financing needs involving some liability management that constitutes a default under Moody's definition. Lebanon's gross financing needs exceed 30% of GDP, amongst the highest of rated sovereigns. However, Moody's expects that any such exercise would likely look to safeguard banks' solvency and financial stability, so as to preserve depositor confidence and the Lebanese pound's peg to the US dollar, and therefore maintain Lebanon's economic model whereby financial inflows (predominantly deposit inflows) continue to finance the government deficit and a large part of the current account deficit.

The Lebanese banks face headwinds in attracting deposits because of the political impasse in the country, low economic growth, rising global interest rates and tighter emerging market liquidity. Deposit growth has slowed to $4.5 billion during the eleven months to November 2018 compared to an average of $6.9 billion during the same period in 2013-2016, while deposit dollarisation reached 70%, a level last-seen in 2008. Lebanese banks are able to continue to attract customer deposits by offering higher interest rates, which in turn are supported by transactions with the BdL that provide banks with higher returns on their placements with the central bank. These private sector deposit inflows are ultimately channeled to support the sovereign and foreign reserves. Therefore, a sustained slowdown in deposit inflows or capital outflows remain the key downside risk for banks and the sovereign. Continued heightened political uncertainty can maintain such a slowdown in deposits, while conversely the formation of a new government tied with meaningful fiscal reforms to unlock donor funding for Lebanon would support macroeconomic stability, raise the prospect for new deposit inflows and potentially reduce the risk premia banks need pay for new deposits.

Banking system liquidity has been centralised at the BdL, and against the above-mentioned funding risks the central bank's still large stock of foreign exchange reserves provides a buffer against a period of slower financial inflows or short-term outflows and conversions into foreign currency. BdL's foreign currency reserves stood at $33.6 billion as of November 2018, equivalent to 65% of currency in circulation and Lebanese pound deposits (M2), supporting the stability of the peg, or 90% of all non-resident deposits (that we consider more confidence sensitive). The BdL also had gold worth $11.3 billion and other foreign assets (Lebanese Eurobonds and other foreign securities) of $7.3 billion as of November 2018.

Despite the rating downgrade, which is linked to the sovereign rating action, Moody's acknowledges that the banks' own financial fundamentals have remained relatively resilient against operating environment pressures. The three banks remain profitable with a net income to tangible assets ranging from 0.6% to 1.4% in the nine months to September 2018, and their latest reported capital ratios, while modest when viewed against concentrations to the sovereign, were reasonably above higher regulatory requirements that were implemented as of the end of 2018, with a requirement for minimum common equity tier 1, tier 1 and total capital ratios of 10%, 13% and 15% respectively, and which include a larger 4.5% capital conservation buffer. Going forward Moody's will adjust its own capital measure, which is tangible common equity to risk-weighted assets, by applying a 150% risk weighting on banks' Lebanese sovereign exposure, which is line with weightings provided in the Basel standardised framework for a Caa1 sovereign rating.

Individual banks' main rating drivers:

--- Bank Audi

Bank Audi's caa1 BCA and Caa1 long-term deposit ratings are driven by its overall sovereign exposure, which Moody's estimates at around 4.7 times Tier 1 capital as of the end of 2017, which is the latest audited financial information. Direct government exposure (T-bills and Eurobonds) has come down in recent years and was 0.7 times Tier 1 capital, while exposure to the BdL increased following transactions with the central bank.

The bank's BCA also reflects its leading domestic market position and geographical diversification, with 31% of assets outside Lebanon as of end-September 2018 (14% of assets are in Turkey, 11% in the rest of the Middle-East and Africa region and 6% in Europe), as well as its adequate liquidity and deposit funding structure. Moody's considers the bank's capitalisation as modest, with a shareholder's equity (excluding minority interest)-to-total assets of 8.0% as of end-September 2018, in light of high concentration to sovereign securities and the bank's exposure to the very weak Lebanese operating environment. Moody's also takes into account risks relating to more challenging operating conditions in Turkey, where the rating agency expects asset quality deterioration. Large collective provisions still provide a buffer against potential credit losses, however. Bank Audi had $200 million in collective provisions, representing 1.5% of net loans as of September 2018, and further excess provisions for loans required by the BdL of $164 million booked under provisions for risks and charges.

--- BLOM Bank

BLOM Bank's caa1 BCA and Caa1 long-term deposit ratings are driven by its overall sovereign exposure, which Moody's estimates at around 6.0 times Tier 1 capital as of the end of 2017. Similarly to the other Lebanese banks direct government exposure (T-bills and Eurobonds) has reduced and was 0.8 times Tier 1 capital, while exposure to the BdL increased.

The bank's BCA also reflects the bank's strong domestic market position (ranked as the second-largest bank in Lebanon in terms of assets), as well as its resilient bottom-line profitability, adequate liquidity profile and deposit-based funding structure. BLOM Bank's shareholders' equity (excluding minority interests)-to-total assets of 8.7% as of end-September 2018 is stronger than its domestic peers, but Moody's considers that this level of capital is moderate given the challenging domestic operating environment and high sovereign exposure. Substantial collective provisions booked in recent years, provide a buffer against potential loan quality deterioration. BLOM Bank had $78 million in collective provisions, representing 1.1% of gross loans as of September 2018, and further excess provisions for loans required by the BdL of $124 million booked under provisions for risks and charges.

--- Byblos Bank

Byblos Bank's caa1 BCA and Caa1 long-term deposit ratings are driven by its overall sovereign exposure, which Moody's estimates at around 6.6 times Tier 1 capital as of the end of 2017. Direct government exposure (T-bills and Eurobonds) has been coming down in recent years and was 2.0 times Tier 1 capital, while exposure to the BdL is increasing.

The bank's BCA also reflects its established domestic market position as one of the four largest banks in Lebanon, as well as its strong liquidity and deposit-based funding structure. Conversely, Moody's considers that the risks associated with the challenging operating environment and sovereign risk concentrations mean that the bank's capitalisation is only modest, with a shareholder's equity (excluding minority interests)-to-total assets of 7.5% as of end-September 2018. Large collective provisions still provide a first-line of defense against potential loan quality deterioration. Byblos Bank had $144 million in collective provisions, equivalent to roughly 2% of gross loans as of year-end 2017.

-- STABLE OUTLOOK

The stable outlook on the long-term ratings of the three Lebanese banks is aligned with the stable outlook on Lebanon's Caa1 sovereign rating given the high interconnectedness between banks and the sovereign.

The stable outlook on the sovereign rating reflects a balance of risks at the Caa1 rating level. Despite long-standing very weak credit metrics and periods of elevated credit pressure in the past, Lebanon has a proven track record of avoiding default. An event of default may be avoided if, upon its formation, a new government takes some fiscal consolidation measures that unlock the CEDRE ("Conférence économique pour le développement, par les réformes et avec les entreprises") public investment package. Alternatively or in conjunction with CEDRE inflows, more financial interventions by the central bank could contribute to avoiding a default event if that is achieved while maintaining broad financial stability. Meanwhile, a further deterioration in Lebanon's fiscal and external metrics, potentially as a result of a continuing delay in the formation of the government that reduces the chance of some fiscal consolidation, would exacerbate Lebanon's credit pressures, and likely further undermine depositor confidence. The resulting further increase in the threat to financial stability would mean that a default, if one eventually occurred, would likely involve more significant losses to investors.

Furthermore, as mentioned previously, Moody's central scenario is that any potential liability management exercise by the sovereign would likely be structured in such a way so as to preserve banks' solvency and therefore the mutually supportive relationship between banks, the government and the economy.

WHAT COULD MOVE THE RATINGS UP/DOWN

In view of the strong linkages between the banks' creditworthiness and that of the sovereign, an upgrade of the Lebanese government could move their ratings up.

Conversely, a downgrade of the Lebanese government would exert negative pressure on the banks' ratings. Moody's may also downgrade the banks' ratings in the event of a significant slowdown in banking system deposit growth or outright deposit outflows in Lebanon that would challenge both the banking sector's ability to finance the government and the economy.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in August 2018. 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_1113601.

LIST OF AFFECTED RATINGS AND ASSESSMENTS

Issuer: Bank Audi S.A.L.

..Downgrades:

.... Adjusted Baseline Credit Assessment, Downgraded to caa1 from b3

.... Baseline Credit Assessment, Downgraded to caa1 from b3

.... Long-term Counterparty Risk Assessment, Downgraded to B3(cr) from B2(cr)

.... Long-term Counterparty Risk Rating, Downgraded to B3 from B2

.... National Scale Rating Short-term Counterparty Risk Rating, Downgraded to LB-2 from LB-1

.... National Scale Rating Long-term Counterparty Risk Rating, Downgraded to A3.lb from Aa3.lb

.... National Scale Rating Short-term Bank Deposits, Downgraded to LB-3 from LB-2

.... National Scale Rating Long-Term Bank Deposits, Downgraded to Baa3.lb from A3.lb, Outlook Changed To Stable From Negative

.... Long-term Bank Deposits, Downgraded to Caa1 from B3, Outlook Changed To Stable From Negative

..Affirmations:

.... Short-term Counterparty Risk Assessment, Affirmed NP(cr)

.... Short-term Counterparty Risk Rating, Affirmed NP

.... Short-term Bank Deposits, Affirmed NP

..Outlook Action:

....Outlook Changed To Stable From Negative

Issuer: BLOM BANK S.A.L.

..Downgrades:

.... Adjusted Baseline Credit Assessment, Downgraded to caa1 from b3

.... Baseline Credit Assessment, Downgraded to caa1 from b3

.... Long-term Counterparty Risk Assessment, Downgraded to B3(cr) from B2(cr)

.... Long-term Counterparty Risk Rating, Downgraded to B3 from B2

.... National Scale Rating Short-term Counterparty Risk Rating, Downgraded to LB-2 from LB-1

.... National Scale Rating Long-term Counterparty Risk Rating, Downgraded to A3.lb from Aa3.lb

.... National Scale Rating Short-term Bank Deposits, Downgraded to LB-3 from LB-2

....National Scale Rating Long-term Bank Deposits, Downgraded to Baa3.lb from A3.lb, Outlook Changed To Stable From Negative

....Long-term Deposit Note/CD Program, Downgraded to Caa1 from B3, Outlook Assigned at Stable

....Long-term Bank Deposits, Downgraded to Caa1 from B3, Outlook Changed To Stable From Negative

..Affirmations:

.... Short-term Counterparty Risk Assessment, Affirmed NP(cr)

.... Short-term Counterparty Risk Rating, Affirmed NP

.... Short-term Bank Deposits, Affirmed NP

..Outlook Action:

....Outlook Changed To Stable From Negative

Issuer: Byblos Bank S.A.L.

..Downgrades:

.... Adjusted Baseline Credit Assessment, Downgraded to caa1 from b3

.... Baseline Credit Assessment, Downgraded to caa1 from b3

.... Long-term Counterparty Risk Assessment, Downgraded to B3(cr) from B2(cr)

.... Long-term Counterparty Risk Rating, Downgraded to B3 from B2

.... National Scale Rating Short-term Counterparty Risk Rating, Downgraded to LB-2 from LB-1

.... National Scale Rating Long-term Counterparty Risk Rating, Downgraded to A3.lb from Aa3.lb

.... National Scale Rating Short-term Bank Deposits, Downgraded to LB-3 from LB-2

.... National Scale Rating Long-term Bank Deposits, Downgraded to Baa3.lb from A3.lb, Outlook Changed To Stable From Negative

.... Long-term Bank Deposits, Downgraded to Caa1 from B3, Outlook Changed To Stable From Negative

..Affirmations:

.... Short-term Counterparty Risk Assessment, Affirmed NP(cr)

.... Short-term Counterparty Risk Rating, Affirmed NP

.... Short-term Bank Deposits, Affirmed NP

..Outlook Action:

....Outlook Changed To Stable From Negative

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 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.

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.

Alexios Philippides
Asst Vice President - Analyst
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.
© 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.

​​​​​​​​