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 three Lebanese banks to B3 stable

29 Aug 2017

Rating action follows downgrade of Lebanon's sovereign rating

Limassol, August 29, 2017 -- Moody's Investors Service (Moody's) has today downgraded to B3 from B2 the long-term deposit ratings of three Lebanese banks: 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 baseline credit assessments (BCAs) of the three banks to b3 from b2 and their long-term Counterparty Risk Assessments (CR Assessments) to B2(cr) from B1(cr). The rating agency also downgraded Bank Audi's and BLOM Bank's national scale ratings (NSRs) to A3.lb/LB-2 from Aa3.lb/LB-1, and to A3.lb/LB-2 from A1.lb/LB-1 for Byblos Bank.

The outlook on the long-term deposit ratings and NSRs has changed to stable from negative.

Today's rating action on the Lebanese banks is principally driven by Moody's downgrade of Lebanon's government bond ratings to B3 stable from B2 negative on 25 August 2017 (please see "Moody's Downgrades Lebanon's Rating To B3, Changes Outlook To Stable From Negative" https://www.moodys.com/research/--PR_365093), and reflects the rating agency's view that the government's weakened creditworthiness (reflected in the downgrade of its rating and mainly driven by the rise in the country's debt burden) weighs on the banks' standalone credit profile given the high credit linkages between their balance sheets and sovereign credit risk.

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

RATINGS RATIONALE

HIGH CORRELATION WITH SOVEREIGN CREDIT RISK

Moody's decision to downgrade the three Lebanese banks' standalone BCAs to b3, and their long-term deposits ratings to B3, reflects the extensive interconnectedness between their balance sheets and sovereign credit risk. Banks' high direct exposure to the government, in addition to the primarily Lebanese focus of their operations renders the banks susceptible to event risk at the sovereign level and constrains their BCAs at the level of the government's bond rating.

According to Moody's estimates, the banks' overall exposure to government credit risk (including investments in government securities, and central bank certificates of deposits and non-reserve placements with the central bank) stood at around 4.8 times Tier 1 capital for Bank Audi, 5.2 times for BLOM Bank and 6.5 times for Byblos Bank as of year-end 2016. Regional geographic diversification ranges from around 5% of assets for Byblos Bank, 18% for BLOM Bank and up to 41% for Bank Audi as of end-June 2017, and is not sufficient to fully offset the risks associated with the banks' credit linkages to the Lebanese sovereign.

The banks' B3 long-term deposit ratings are only driven by the positioning of their BCAs and do not benefit from government support uplift, given that their standalone BCAs of b3 are on par with the government's B3 rating.

THE OPERATING ENVIRONMENT FOR BANKS REMAINS AT WEAK-

Although operating conditions will remain challenging and notwithstanding Moody's downgrade of Lebanon's government bond rating, the rating agency expects the operating environment for banks to stabilise after years of deterioration on the back of renewed political stability driving a modest pickup in economic growth, albeit from low levels. The rating agency forecasts real GDP growth to pick up slightly to 2.8% in 2017 and 3.0% in 2018, from 1.8% in 2016 but below the 9% average for 2007-10.

Moody's therefore continues to view the operating environment for banks (Macro Profile) in Lebanon as Weak-. This reflects a very large public debt overhang, wide fiscal and current account deficits, and regional political instability. These factors are balanced against a resilient bank deposit base supporting government funding needs and comparatively high per capita income.

Although tourism is experiencing a revival, activity in other key sectors such as construction and real estate is still subdued and Moody's expects that stronger economic recovery and a recovery in investor confidence will require a period of tangible reforms as a catalyst. Therefore credit conditions for banks remain challenging. The rating agency also considers private-sector credit of around 110% of GDP as of year-end 2016 as high compared to other emerging markets, while total banking system assets equaled almost four-times GDP as of year-end 2016, one of the highest globally, driven by banks' large sovereign exposures.

RATIONALE FOR STABLE OUTLOOK

Moody's has changed to stable from negative the outlooks on the three banks' long-term deposit ratings and NSRs. The stable outlooks are aligned with the outlook on Lebanon's government rating given the high interconnectedness between banks and the sovereign. The stable outlook on the sovereign rating reflects the return to a fully-functioning government, which will support reform momentum going forward.

Beyond the above-mentioned alignment, the stable outlook on the banks' ratings also reflects the rating agency's expected stabilisation of the operating conditions for banks in Lebanon.

BANK-SPECIFIC DRIVERS

--- Bank Audi

Bank Audi's b3 BCA and B3 long-term deposit ratings reflect its leading domestic market position and improving geographical diversification, with 41% of assets outside Lebanon as of end-June 2017 (24% 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 profile and stable funding structure. Moody's considers the bank's capitalisation as modest, although it is improving, with a shareholder's equity (excluding minority interest)-to-total assets of 8.2% as of end-June 2017, given the challenging domestic operating environment together with risks relating to the bank's rapid expansion in Turkey where the operating environment for banks has weakened, although it remains more favourable than the Lebanese operating environment.

Bank Audi's A3.lb long-term and LB-2 short-term Lebanese NSRs are mainly derived from the bank's global local-currency deposit ratings and reflect its strong relative creditworthiness within the Lebanese credit environment driven by its dominant domestic market position, comparatively lower sovereign exposure compared to peers and higher geographical diversification.

--- BLOM Bank

BLOM Bank's standalone and long-term deposit ratings reflect 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 stable, predominantly retail deposit-based, funding structure. BLOM Bank's shareholder's equity-to-total assets of 8.6% as of end-June 2017 is stronger than its domestic peers, but Moody's considers that this level of capital is only moderate given the still challenging domestic operating environment and high sovereign exposure.

BLOM Bank's A3.lb long-term and LB-2 short-term Lebanese NSRs reflect its strong relative creditworthiness within the Lebanese credit environment. BLOM Bank's NSRs reflect its established market position and strong profitability and capitalisation compared to domestic peers, but also its relatively limited geographic diversification.

--- Byblos Bank

Byblos Bank's standalone and long-term deposit ratings reflect its established domestic market position as one of the four largest banks in Lebanon, as well as its strong liquidity profile and stable, predominantly retail 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-to-total assets of 8.0% as of end-June 2017.

Byblos Bank's A3.lb long-term and LB-2 short-term Lebanese NSRs reflect its strong relative creditworthiness within the Lebanese credit environment driven by an established market position and superior liquidity profile, furthermore, although the bank is exposed to large asset and liability maturity mismatches, this exposure is lower compared to peers. The bank's NSRs also reflect its limited geographical diversification and higher credit concentrations (including to the Lebanese sovereign) and relatively moderate profitability compared to peers.

WHAT COULD MOVE THE RATINGS DOWN/UP

In view of the strong linkages between the banks' creditworthiness and that of the sovereign, an upgrade or downgrade of the Lebanese sovereign may trigger an action on their deposit ratings. Given that the banks' ratings are constrained by the sovereign rating there would be limited upward rating pressure otherwise.

However, Moody's may also downgrade the banks' ratings in the event of a substantial weakening of their operating environment especially if this leads to capital outflows, or, asset quality deterioration affecting profitability and capitalisation.

LIST OF AFFECTED RATINGS

Issuer: Bank Audi

Downgrades:

....LT Bank Deposits (Local & Foreign Currency), Downgraded to B3 from B2, Outlook Changed to Stable from Negative

.LT National Scale Rating, Downgraded to A3.lb from Aa3.lb, Outlook Changed to Stable from Negative

.ST National Scale Rating, Downgraded to LB-2 from LB-1

....Adjusted Baseline Credit Assessment, Downgraded to b3 from b2

....Baseline Credit Assessment, Downgraded to b3 from b2

....LT Counterparty Risk Assessment, Downgraded to B2(cr) from B1(cr)

Affirmations:

....ST Bank Deposits (Local & Foreign Currency), Affirmed NP

....ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

....Outlook, Changed to Stable from Negative

Issuer: BLOM Bank

Downgrades:

....LT Bank Deposits (Local & Foreign Currency), Downgraded to B3 from B2, Outlook Changed to Stable from Negative

.LT National Scale Rating, Downgraded to A3.lb from Aa3.lb, Outlook Changed to Stable from Negative

.ST National Scale Rating, Downgraded to LB-2 from LB-1

....Adjusted Baseline Credit Assessment, Downgraded to b3 from b2

....Baseline Credit Assessment, Downgraded to b3 from b2

....LT Counterparty Risk Assessment, Downgraded to B2(cr) from B1(cr)

Affirmations:

....ST Bank Deposits (Local & Foreign Currency), Affirmed NP

....ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

....Outlook, Changed to Stable from Negative

Issuer: Byblos Bank

Downgrades:

....LT Bank Deposits (Local & Foreign Currency), Downgraded to B3 from B2, Outlook Changed to Stable from Negative

.LT National Scale Rating, Downgraded to A3.lb from A1.lb, Outlook Changed to Stable from Negative

.ST National Scale Rating, Downgraded to LB-2 from LB-1

....Adjusted Baseline Credit Assessment, Downgraded to b3 from b2

....Baseline Credit Assessment, Downgraded to b3 from b2

....LT Counterparty Risk Assessment, Downgraded to B2(cr) from B1(cr)

Affirmations:

....ST Bank Deposits (Local & Foreign Currency), Affirmed NP

....ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

....Outlook, Changed to Stable from Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in January 2016. 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_1060333.

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.

​​​​​​​​