Moodys.com
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Related Issuers
Accunia European CLO I B.V.
Adagio V CLO Designated Activity Company
ALME Loan Funding III Designated Activity Company
Aqueduct European CLO 4 - 2019 Designated Activity Company
Arbour CLO II Designated Activity Company
Arbour CLO IV Designated Activity Company
Arbour CLO V Designated Activity Company
Ares European CLO VII B.V.
Armada Euro CLO I Designated Activity Company
Aurium CLO I Designated Activity Company
Aurium CLO II Designated Activity Company
Aurium CLO III Designated Activity Company
Aurium CLO V Designated Activity Company
Avoca CLO XX Designated Activity Company
Bain Capital Euro CLO 2017-1 Designated Activity Company
Bain Capital Euro CLO 2018-2 Designated Activity Company
Bardin Hill Loan Advisors European Funding 2019-1 Designated Activity Company
Black Diamond CLO 2019-1 Designated Activity Company
BlackRock European CLO II Designated Activity Company
BlackRock European CLO III Designated Activity Company
Blackrock European CLO VIII Designated Activity Company
BlueMountain Fuji EUR CLO II Designated Activity Company
Cairn CLO V B.V.
Cairn CLO VI B.V.
Cairn CLO VII B.V.
Cairn CLO VIII B.V.
Carlyle Euro CLO 2017-2 DAC
Carlyle Global Market Strategies Euro CLO 2013-1 B.V.
Carlyle Global Market Strategies Euro CLO 2014-2 Designated Activity Company
Carlyle Global Market Strategies Euro CLO 2016-1 Designated Activity Company
Carlyle Global Market Strategies Euro CLO 2016-2 Designated Activity Company
Clarinda Park CLO Designated Activity Company
Clontarf Park CLO Designated Activity Company
CVC Cordatus Loan Fund III Designated Activity Company
CVC Cordatus Loan Fund IX Designated Activity Company
CVC Cordatus Loan Fund VII Designated Activity Company
CVC Cordatus Loan Fund VIII Designated Activity Company
CVC Cordatus Loan Fund XI Designated Activity Company
CVC Cordatus Loan Fund XV Designated Activity Company
Dryden 32 Euro CLO 2014 B.V.
Dryden 35 Euro CLO 2014 B.V.
Dryden 44 Euro CLO 2015 B.V.
Dryden 52 Euro CLO 2017 B.V.
Dryden 63 GBP CLO 2018 B.V.
Dryden XXVII-R Euro CLO 2017 B.V.
Grand Harbour CLO 2019-1 Designated Activity Company
Griffith Park CLO Designated Activity Company
Halcyon Loan Advisors European Funding 2014 B.V.
Harvest CLO XII Designated Activity Company
Harvest CLO XVI DAC
Harvest CLO XVIII DAC
HARVEST CLO XX DAC
Harvest CLO XXI DAC
Jubilee CLO 2016-XVII B.V.
Jubilee CLO 2018-XX B.V.
Jubilee CLO 2018-XXI B.V.
Madison Park Euro Funding IX DAC
Madison Park Euro Funding X DAC
Madison Park Euro Funding XI DAC
Madison Park Euro Funding XII DAC
Madison Park Euro Funding XIV DAC
Man GLG Euro CLO II D.A.C.
Newhaven CLO Designated Activity Company
Oak Hill European Credit Partners V Designated Activity Company
OCP EURO CLO 2017-1 Designated Activity Company
OCP Euro CLO 2019-3 Designated Activity Company
OZLME B.V.
OZLME II Designated Activity Company
OZLME III Designated Activity Company
OZLME IV Designated Activity Company
OZLME V Designated Activity Company
OZLME VI Designated Activity Company
Phoenix Park CLO Designated Activity Company
Richmond Park CLO Designated Activity Company
St. Paul's CLO VII DAC
Tikehau CLO II B.V.
Toro European CLO 3 Designated Activity Company
Rating Action:

Moody's places ratings on 234 securities from 77 EMEA CLOs on review for possible downgrade

03 Jun 2020

Approximately EUR 4.4 billion of securities affected

London, 03 June 2020 -- Moody's Investors Service ("Moody's") announced today that it has placed on review for possible downgrade its ratings on 234 securities ("CLO Securities") issued by 77 EMEA broadly syndicated loan-backed (BSL) collateralized loan obligations (CLOs). The CLO Securities include 81 rated Baa2 (sf) - Baa3 (sf), 77 rated Ba2 (sf) - Ba3 (sf), and 76 rated B1 (sf) or below.

Moody's actions today follow the CLO actions Moody's took on 20 April 2020, and are primarily prompted by a continuing decline in the credit quality of CLO portfolios as a result of economic shocks stemming from the coronavirus pandemic. Since April, the decline in corporate credit has resulted in a significant number of downgrades among the assets underlying some CLOs. Consequently, the weighted average default risk of these CLO portfolios has increased substantially and the credit protection available to the CLO securities has eroded, prompting Moody's to place additional securities on review for possible downgrade.

Together with the 117 EMEA CLO securities placed on review on 20 April, today's actions brought the total number of EMEA CLO securities on review for possible downgrade to 351. These securities represent approximately 16% by count, or 6.5% by balance, of Moody's-rated EMEA BSL CLO securities oustanding. All the securities placed on review for possible downgrade today and in April are currently rated Baa (sf) or below. As was the case with the 20 April actions, no Aaa (sf) or Aa (sf) or A (sf)-rated CLO securities are affected by today's actions due to their strong structural credit protections.

During its review, Moody's will assess the impact of the ongoing credit weakening on the CLO ratings, taking into account: (1) the changes in the credit quality of individual deals' portfolios; (2) manager trading strategies; (3) structural mechanisms such as OC test haircuts for "excess" Caa exposures and cash flow diversion due to the breaches of certain deal covenants; and (4) other credit impacts attributed to our forward-looking assessment of the length, breadth, and depth of the economic and policy response to the global pandemic. Moody's generally strives to conclude rating reviews within 90 days. However, due to the high degree of uncertainty in the current credit environment, the resolution of these watchlist actions may extend beyond the usual timeframe. Ratings that are placed on review for possible downgrade, or ultimately downgraded, are meant to signal increased risk of credit loss. They are generally not, however, declarations that losses are expected.

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBS_ARFTL425456 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

RATINGS RATIONALE

The rating action on the CLO Securities today is primarily a result of :

(1) worsening portfolio WARFs, a measure of CLO asset default risk;

(2) increasing shares of Caa-rated assets in the portfolios due to downgrades of the underlying assets;

(3) decreasing portfolio par as a result of asset value haircuts related to large Caa asset holdings, market value haircuts on discount assets, and par loss due to defaulted assets and trading, leading to declining overcollateralization protection to the securities.

Portfolio WARFs have worsened across CLOs as weakening corporate credit has led to the downgrade of many issuers whose loans make up CLO asset pools. Among the transactions with securities affected by today's rating action, portfolio WARFs have increased from 2972 to 3376, or a 13.7% increase on average since March.

The downgrades to the underlying assets have also increased the transactions' concentrations of Caa-rated assets. Caa assets above a certain covenant threshold in a typical CLO alter the risk profile of the CLO portfolio and lead to par value haircuts attributed to such excess Caa assets that address the increased risk in the portfolio, especially for loans that carry unusually low market prices. Among the transactions with securities affected by today's rating actions, the portfolios' shares of Caa assets have increased from 3.4% to 6.7% on average since March.

The rise in Caa assets, along with declining market values of loans in CLO portfolios, has led to increasing par haircuts from excess Caa and other assets (for example, discount obligations) and has reduced Moody's estimates of overcollateralization in the deals. Par reduction from haircuts along with losses due to defaulted assets and trading have reduced the cushion that most transactions have on their OC tests. Among the transactions with securities affected by today's rating actions, the junior OC levels have decreased from 109.9% to 109.1%, a loss of 0.8% on average since March.

Moody's notes that corporate credit weakening and the resulting rating downgrades have impacted CLO-held obligors. In recent weeks, the pace of negative corporate rating actions has slowed as Moody's approach to reassessing ratings based on the shock of the coronavirus and low oil prices has progressed. As the current credit shock materialized in March 2020, the number of negative rating actions peaked in late March and early April. More recently, these have declined steadily. In addition, loan prices have also recently recovered substantially from their March lows.

Approximately 28% of the assets in EMEA BSL CLO portfolios have been assigned negative outlooks and 5.5% have ratings on review for possible downgrade. As a result of negative rating actions, as of May 2020, the average portfolio WARF in EMEA BSL CLO transactions was 3367, in comparison with 3210 in April 2020 and 2977 in March 2020. Approximately 94% of deals are now failing WARF covenants. Concurrently, the average reported Caa asset percentage in EMEA BSL CLO transactions rose to 5.3% in April, up from 3.3% in March 2020. While the amount of defaults in CLO portfolios remains low at this point, Moody's forecasts that the rolling 12-month European speculative grade default rate will rise to about 7.8% by April 2021.

To identify the CLO Securities subject to today's rating action, Moody's conducted an analysis that focused primarily on:

(1) the degree of worsening in key portfolio credit quality metrics, including WARF migration and par erosion, and how it impacts the rated securities;

(2) estimated expected losses ("estimated EL") of rated securities based on a quantitative analysis that incorporates key methodological components.

Based on these analyses, the securities affected by today's action generally adhere to the following criteria:

(1) the CLO's Updated WARF is at least 15% worse than its reported WARF in March, or the CLO's Updated WARF is not more than 15% worse than its reported WARF in March but the CLO's OC ratio for the securities has decreased by more than 0.75% since Moody's last rating action; or

(2) for the securities rated Baa1 or lower in the transaction, any CLO Security's estimated EL materially exceeds the loss benchmarks for the current rating; or

(3) notwithstanding the criteria above, we exclude the CLO Security if none of the CLO's securities rated Baa and lower have estimated EL that materially exceed the loss benchmarks for their current rating.

Our analysis has considered the effect of the coronavirus outbreak on the global economy as well as the effects that the announced government measures, put in place to contain the virus, will have on the performance of corporate assets.

The contraction in economic activity in the second quarter will be severe and the overall recovery in the second half of the year will be gradual. However, there are significant downside risks to our forecasts in the event that the pandemic is not contained and lockdowns have to be reinstated. As a result, the degree of uncertainty around our forecasts is unusually high. We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety.

Factors that Could Lead to an Upgrade or Downgrade of the Ratings:

The performance of rated CLO Securities is subject to, and is sensitive to, the performance of the related CLOs' underlying portfolios and related CLOs, respectively, which in turn depends on economic and credit conditions that may change. In particular, the length and severity of the economic and credit shock precipitated by the global coronavirus pandemic will have a significant impact on the performance of the securities. Additionally, to the extent that trading is permitted and feasible with respect to a CLO, the applicable CLO manager's investment decisions and management of such transaction will also affect the performance of the CLO's rated CLO Securities.

The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in March 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1111156. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings announced here are all solicited 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 https://www.moodys.com/viewresearchdoc.aspx?docid=PBS_ARFTL425456 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:

• Person Approving the Credit Rating

• 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.

Moody's did not use any models, or loss or cash flow analysis, in its analysis.

Moody's did not use any stress scenario simulations in its analysis.

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.

At least one ESG consideration was material to the credit rating action(s) announced and described above.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.

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

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

Mizuho Tanaka
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Ian Perrin
Associate Managing Director
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Javier Hevia Portocarrero
VP - Senior Credit Officer
Structured Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
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.

​​​​​​​​
Moodys.com