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Rating Action:

Moody's places the ratings of AerCap, Aircastle, ACG, Avolon, and DAE on review for downgrade; affirms ratings for Voyager with negative outlook

01 Jun 2020

New York, June 01, 2020 -- Moody's Investors Service, ("Moody's") has placed the ratings of the following aircraft leasing companies on review for downgrade: AerCap Holdings N.V. (Baa3 backed issuer rating), Aircastle Limited (Baa3 long-term senior unsecured), Aviation Capital Group LLC (Baa2 issuer rating), Avolon Holdings Limited (Baa3 backed issuer rating), and DAE Funding LLC (Baa3 backed long-term senior unsecured). Moody's has also affirmed the B1 corporate family and B2 long-term senior unsecured ratings of Voyager Aviation Holdings, LLC (Voyager); Voyager's outlook remains negative.

Ratings placed on review for downgrade reflect Moody's expectation that recovery in the severely disrupted passenger airline industry will be slower to develop than originally anticipated, increasing lessors' financial performance risks. Moody's affirmed Voyager's ratings because the ratings already reflect its financial risks and exposures to the disrupted air travel industry.

The disruption in air travel globally is related to the coronavirus pandemic, which Moody's regards as a social risk under its environmental, social and governance (ESG) framework, given the substantial implications for public health and safety. Today's rating actions reflect the negative effects on aircraft lessors of the breadth and severity of the shock, and the deterioration in credit quality, profitability, capital and liquidity it has triggered.

On Review for Downgrade:

..Issuer: AerCap Holdings N.V.

....Backed LT Issuer Rating, Placed on Review for Downgrade, currently Baa3

....Backed Junior Subordinated Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Ba2 (hyb)

..Issuer: AerCap Ireland Capital D.A.C

....Backed Senior Unsecured Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Baa3

....Backed Senior Unsecured Shelf (Foreign Currency), Placed on Review for Downgrade, currently (P)Baa3

..Issuer: AerCap Global Aviation Trust

....Backed Junior Subordinated Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Ba1 (hyb)

....Backed Senior Unsecured Shelf (Foreign Currency), Placed on Review for Downgrade, currently (P)Baa3

..Issuer: International Lease Finance Corporation

....Pref. Stock, Placed on Review for Downgrade, currently Ba2 (hyb)

....Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa3

..Issuer: Delos Finance SARL

....Backed Senior Secured Bank Credit Facility (Foreign Currency), Placed on Review for Downgrade, currently Baa2

..Issuer: Flying Fortress Holdings, LLC

....Backed Senior Secured Bank Credit Facility, Placed on Review for Downgrade, currently Baa2

..Issuer: ILFC E-Capital Trust I

....Backed Pref. Stock, Placed on Review for Downgrade, currently Ba1 (hyb)

..Issuer: ILFC E-Capital Trust II

....Backed Pref. Stock, Placed on Review for Downgrade, currently Ba1 (hyb)

..Issuer: Avolon Holdings Limited

....Backed LT Issuer Rating (Foreign Currency), Placed on Review for Downgrade, currently Baa3

..Issuer: Global Aircraft Leasing Co., Ltd.

....Senior Unsecured Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Ba2

..Issuer: Avolon Holdings Funding Limited

....Backed Senior Unsecured Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Baa3

..Issuer: Avolon TLB Borrower 1 (US) LLC

....Senior Secured Bank Credit Facility, Placed on Review for Downgrade, currently Baa2

....Backed Senior Secured Bank Credit Facility, Placed on Review for Downgrade, currently Baa2

..Issuer: Park Aerospace Holdings Limited

....Backed Senior Unsecured Regular Bond/Debenture (Foreign Currency), Placed on Review for Downgrade, currently Baa3

..Issuer: Aircastle Limited

....Pref. Shelf, Placed on Review for Downgrade, currently (P)Ba2

....Subordinate Shelf, Placed on Review for Downgrade, currently (P)Ba1

....Senior Unsecured Shelf, Placed on Review for Downgrade, currently (P)Baa3

....Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa3

..Issuer: Aviation Capital Group LLC

....LT Issuer Rating, Placed on Review for Downgrade, currently Baa2

....Commercial Paper, Placed on Review for Downgrade, currently P-2

....Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa2

..Issuer: AWAS Aviation Capital D.A.C.

....LT Issuer Rating (Foreign Currency), Placed on Review for Downgrade, currently Baa3

..Issuer: DAE Funding LLC

....Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa3

Affirmations:

..Issuer: Voyager Aviation Holdings, LLC

....LT Corporate Family Rating, Affirmed at B1

....Senior Unsecured Regular Bond/Debenture, Affirmed at B2

Outlook Actions:

..Issuer: AerCap Holdings N.V.

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

..Issuer: AerCap Ireland Capital D.A.C

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

..Issuer: AerCap Global Aviation Trust

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

..Issuer: International Lease Finance Corporation

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

..Issuer: Delos Finance SARL

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

..Issuer: Flying Fortress Holdings, LLC

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

..Issuer: ILFC E-Capital Trust I

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

..Issuer: ILFC E-Capital Trust II

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

..Issuer: Avolon Holdings Limited

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

..Issuer: Global Aircraft Leasing Co., Ltd.

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

..Issuer: Avolon Holdings Funding Limited

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

..Issuer: Avolon TLB Borrower 1 (US) LLC

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

..Issuer: Park Aerospace Holdings Limited

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

..Issuer: Aircastle Limited

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

..Issuer: Aviation Capital Group LLC

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

..Issuer: AWAS Aviation Capital D.A.C.

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

..Issuer: DAE Funding LLC

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

..Issuer: Voyager Aviation Holdings, LLC

....Outlook, Remains Negative

RATINGS RATIONALE

Moody's expects that global air travel demand will remain weaker for longer, resulting in a more protracted and uncertain recovery in the airline industry than previously expected, raising financial performance risks for aircraft leasing companies. Lessors' profitability, cash flow and capital measures will likely weaken more significantly and for a longer period in relation to Moody's rating criteria versus its prior expectations. Furthermore, the depth and duration of the drought in air travel volumes makes it more likely that lessors will need to make significant adjustments to their fleet investments to align with shifts in leased aircraft demand by airlines. These considerations increase downward pressure on the ratings for five aircraft lessors.

In Moody's revised baseline scenario, air passenger demand increases towards 2019 levels in 2023, but during the interim weak airline performance results in higher lease defaults as well as lower leased aircraft utilization and lease rates, negatively affecting lessors' rental revenues, earnings and cash flows through 2022. Moody's revised baseline scenario also assumes that lessors agree to temporarily defer 25% of annual rentals to aid struggling airline lessees, also reducing lessors' near-term cash flow, and that a high percentage of these deferrals will be renewed due to airlines continued weak operations.

Moody's expects that residual values for certain leased aircraft will significantly and permanently weaken as airlines adjust capacity in response to lower air travel demand. Airlines are permanently reducing capacity by retiring older fleet sooner than originally planned, reducing new aircraft acquisitions, and simplifying operations around fewer aircraft models, actions which could have negative implications for airlines' demand for leased aircraft, especially older aircraft. If air travel demand remains subdued for an extended period, the long-term productivity and value of out-of-production and older vintage aircraft owned by lessors will fall, leading to impairment charges that, though non-cash, would weaken lessors' capital positions and base of revenues.

Longer-term shifts in air travel demand could also require that lessors make more significant adjustments to aircraft fleet compositions and investment strategies to accommodate airlines' evolving long-term demand for leased aircraft. Moody's expects that leasing will remain an important source of aircraft acquisition capital for the airline industry, but adjusting fleet to align with revised demand conditions will lower earnings and cash flow and weaken capital positions during the transition, pointing to higher risk.

Aircraft leasing companies rated by Moody's generally have stronger liquidity than most global airlines, which provides flexibility for lessors to extend temporary rental relief to airlines while also meeting debt maturity and aircraft purchase obligations under Moody's stress scenario. Liquidity strength also provides leeway for lessors to adjust strategies to maintain high long-term relevance to airlines as a source of capital for their aircraft fleets. Moody's estimates that the five leasing companies whose ratings are under review for downgrade have sufficient liquidity to repay maturing debt and fund capital expenditures commitments for more than one year, based on first quarter 2020 financial disclosures and subsequently announced liquidity actions, including rescheduled or canceled aircraft purchase orders and new borrowing commitments. However, lessors' ability to refinance debt through conventional unsecured markets is less certain, and while secured debt remains an alternative, costs and terms are expected to be less favorable than in the past.

The severity and duration of the pandemic and travel restrictions remain highly uncertain, particularly given the threat of an increase in the number of infections as social distancing practices across the US and other countries become less stringent in upcoming weeks and beyond. As a result, there are additional downside risks to lessors' financial performance which contribute to Moody's decision to review the ratings of the five lessors.

During its ratings review, Moody's will assess the quality of each lessor's planning and execution in response to contingencies that could affect the strength of their long-term business propositions in an evolving industry. Contingencies relate to a longer period of low air travel volumes, significant contraction in the airline industry and higher defaults, permanently lower demand and values for at-risk fleet aircraft, and contraction in access to efficient sources of capital. Moody's will also assess each lessor's prospects for generating financial performance metrics at levels compatible with existing ratings, assuming air travel improves significantly by 2023 as assumed under Moody's baseline scenario.

Moody's regards the coronavirus pandemic as a social risk under its ESG framework, given the substantial implications for public health and safety. Please see Moody's Environmental risks and Social risks heatmaps for further information. Today's rating actions reflect the impact on aircraft lessors of the breadth and severity of the shock, and the deterioration in credit quality, profitability, capital and liquidity it has triggered.

Following is the rating rationale supporting individual leasing company rating actions.

AerCap Holdings N.V. (AerCap)

Moody's is reviewing AerCap's Baa3 backed issuer rating for downgrade to reflect Moody's expectations of a slower and weaker recovery in air travel that results in lower demand for leased aircraft and higher risks to earnings, cash flow, liquidity and capital positions, potentially weakening the company's credit profile for an extended period. AerCap has a strong liquidity position currently, a large fleet and base of customers, and a history of strong operating performance, which supports the company's leading competitive positioning in commercial aircraft leasing.

Under Moody's calculation, AerCap has sufficient liquidity to cover more than 1.5 years of cash requirements for debt repayments and capital expenditures. Liquidity sources include cash flow stressed under Moody's baseline scenario, including rent deferrals and lower rental revenue due to higher airline defaults and lower aircraft lease utilization. AerCap has $2.5 billion of senior unsecured debt maturities in the second half of 2020, which Moody's views as manageable given the company's liquidity resources. AerCap began the year with approximately $3.5 billion of aircraft acquisition commitments in 2020 and $4.4 billion in 2021, but it has announced a significant restructuring of its commitments, resulting in a reduction of remaining 2020 commitments to $1.1 billion and approximately $2.5 billion for 2021. AerCap has demonstrated strong management of fleet risks, lease renewals and new lease placements. The company has strengthened its fleet composition in recent years, reducing its exposure to the more volatile residual risks on aging aircraft, but it has a more significant investment in wide-body aircraft than peers, which increases its remarketing risks compared to fleets with a higher proportion of more liquid narrow-body aircraft.

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

AerCap's ratings could be downgraded if: 1) Moody's estimates that AerCap will be unable to produce profitability and cash flow metrics by the end of 2023 that are consistent with the current ratings, including net income to average assets of at least 1%; 2) liquidity in relation to expenditures and debt maturities (one-year horizon) declines to less than 120%, 3) the company significantly increases its encumbered assets, and 4) debt-to-equity leverage increases more than Moody's expects due to high impairment charges.

A rating upgrade is unlikely given the review for downgrade. The ratings could be confirmed if: 1) Moody's expects that the company will generate profitability and cash flow ratios consistent with current ratings by 2023, 2) liquidity coverage (one-year) remains above 120%, 3) fleet residual value risks decline, and 4) the company's management of capital and leverage remain strong.

Aircastle Limited (Aircastle)

The review of Aircastle's Baa3 long-term senior unsecured rating for downgrade reflects Moody's expectations of a more extended and weaker recovery in air travel that results in higher risks to earnings, cash flow, liquidity and capital positions. Aircastle was recently acquired by Marubeni Corporation (Baa2 stable) and Muzuho Leasing, providing enhanced stability, eliminating Aircastle's exposure to equity market confidence sensitivity and potentially improving the company's operating flexibility and expand funding alternatives, especially in Japan. Aircastle has adequate liquidity and capital positions, but its fleet includes aircraft that Moody's believes could be more vulnerable to lower utilization in a significantly contracted air travel industry.

Moody's estimates that Aircastle has more than one year's liquidity coverage and that the company's liquidity management actions will likely extend its liquidity runway. The company's historically strong access to the unsecured debt markets has resulted in a high balance of unencumbered aircraft, which is positive for liquidity. Aircastle has a strong competitive position as a lessor of mid-life and older commercial aircraft, but it is exposed to residual risks of aircraft that are on average older than those of many peers.

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

Aircastle's ratings could be downgraded if: 1) Moody's estimates that Aircastle will be unable to produce profitability and cash flow metrics by the end of 2023 that are consistent with the current rating, including net income to average assets of at least 1%; 2) liquidity in relation to expenditures and debt maturities (one-year horizon) declines to less than 120%, 3) debt-to-equity leverage increases more than Moody's expects due to high impairment charges; 4) the company's competitive positioning otherwise is expected to weaken.

A rating upgrade is unlikely given the review for downgrade. The ratings could be confirmed if: 1) Moody's expects that the company will generate profitability and cash flow ratios consistent with current ratings by 2023, 2) the company maintains stronger than peer average liquidity, 3) fleet residual value risks decline, and 4) the company's management of capital remains strong, resulting in a debt-to-equity leverage ratio lower than peer average.

Aviation Capital Group LLC (ACG)

The review of ACG's Baa2 issuer rating for downgrade is based on Moody's expectation of a more extended and weaker recovery in air travel that results in higher risks to earnings, cash flow, liquidity and capital positions, which could weaken the company's credit profile for an extended period. ACG has strong current liquidity, a fleet comprised primarily of recent vintage narrow-body aircraft, as well as a strong capital position and long history of profitable operations.

Moody's estimates that ACG's liquidity resources are sufficient to meet the company's cash needs for debt repayment, aircraft acquisitions and operating expenses for over 1.5 years under Moody's baseline scenario. ACG has a manageable $600 million of senior unsecured debt due in October of this year. ACG began the year with aircraft acquisition commitments of $1.5 billion in 2020 and $2.5 billion in 2021 for narrow-body aircraft, but Moody's expects that the actual expenditures in both years will be much lower, helping to maintain the company's liquidity runway. In recent years, ACG has had strong access to the unsecured debt markets, resulting in low reliance on secured funding and a largely unencumbered fleet, strengthening its liquidity. ACG maintains a conservative capital position with a ratio of debt to tangible equity of 1.9x at 31 March 2020, lower than rated peers. In December 2019, ACG was acquired by Tokyo Century Corporation, which Moody's expects will be supportive of ACG's operating objectives and liquidity position.

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

ACG's ratings could be downgraded if: 1) Moody's estimates that the company will be unable to produce profitability and cash flow metrics by the end of 2023 that are consistent with the current rating, including net income to average assets of at least 1%, 2) liquidity coverage of debt and capital expenditures (one year horizon) declines to less than 150%, 3) impairment charges result in an increase in leverage above 3.5x; and 4) the company's competitive positioning otherwise is expected to weaken.

Rating upgrades are unlikely given the review for downgrade. The ratings could be confirmed if: 1) Moody's expects that the company will generate profitability and cash flow ratios consistent with current ratings by 2023, 2) the company maintains strong liquidity coverage (one-year) of more than 150%, 3) fleet residual value risks decline, and 4) the company's management of capital remains strong, resulting in a debt-to-equity leverage ratio of not more than 3.5x in 2023.

Avolon Holdings Limited (Avolon)

The review of Avolon's Baa3 backed issuer rating for downgrade is based on Moody's expectations of a more extended and weaker recovery in air travel that results in higher risks to earnings, cash flow, liquidity and capital positions, weakening the company's credit profile for an extended period. Avolon's liquidity management is strong, it maintains moderate leverage and has an established competitive position as one of the largest aircraft leasing companies globally.

Moody's expects that Avolon's sources of liquidity, including cash, committed borrowing availability and cash flow will be sufficient to cover more than 1.5 years of the company's debt repayment and aircraft acquisition requirements under Moody's baseline scenario, which includes negative effects on cash flow from the weakened credit quality of airlines. Avolon has manageable debt maturities, with its next maturity of senior unsecured debt occurring in March 2021 in the amount of $300 million. Avolon has significantly restructured its aircraft purchase commitments in 2020, reducing 2020 capex to a full-year total of about $2 billion and 2021 to $2.8 billion from what initially was approximately $4 billion in both 2020 and 2021. Avolon's lead indirect shareholding is by HNA Group, whose airline operations represent Avolon's largest customer exposure, and which has experienced significant liquidity challenges. But Avolon's operating stability and governance were strengthened by ORIX Corporation's (A3 negative) 30% investment in Avolon in November 2018.

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

Avolon's ratings could be downgraded if: 1) Moody's estimates that the company will be unable to produce profitability and cash flow metrics by the end of 2023 that are consistent with the current rating, including net income to average assets of at least 1%, 2) the company's liquidity in relation to debt maturities and aircraft purchase commitments (one-year horizon) weakens to less than 120%; 3) debt-to-equity leverage rises more than Moody's expects given potential aircraft impairment charges and is not expected to decline; or 4) encumbered assets increase materially.

Rating upgrades are unlikely given the review for downgrade. The ratings could be confirmed if: 1) Moody's expects that the company will generate profitability and cash flow ratios consistent with current ratings by 2023, 2) liquidity coverage (one-year) remains above 120%, 3) fleet residual value risks decline, and 4) the company's management of capital and leverage remain strong.

DAE Funding LLC

The review for downgrade of the Baa3 long-term senior unsecured rating of DAE Funding LLC, a subsidiary of Dubai Aerospace Enterprise (DAE) Ltd (DAE), reflects Moody's expectations of a more extended and weaker recovery in air travel that results in higher risks to earnings, cash flow, liquidity and capital positions, which could weaken the company's credit profile for an extended period. DAE has better-than-peer average liquidity strength, disciplined risk management processes, and its unique access to capital and customers in the United Arab Emirates (Aa2 stable) differentiates the company's business proposition versus competitors.

Moody's estimates that DAE's liquidity provides two year's coverage of cash requirements under Moody's baseline scenario as of 31 March 2020, reflecting strong cash balances and available borrowing commitments, manageable debt maturities and absence of material aircraft purchase commitments. DAE has $432 million of senior unsecured debt maturing in August 2020, $577 million of unrestricted cash, and committed borrowing availability of $2.2 billion. DAE has diversified its funding to include a higher proportion of unsecured debt, reducing its reliance on secured debt and increasing unencumbered assets. DAE's aircraft fleet is balanced by model and type and features average age and remaining lease term comparable to rated peer median. DAE's leverage has declined, reflecting strong cash flows and sale of aircraft.

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

DAE's ratings could be downgraded if: 1) Moody's estimates that the company will be unable to produce profitability and cash flow metrics by the end of 2023 that are consistent with the current rating, including net income to average assets of at least 1%, 2) the company's liquidity in relation to debt maturities and aircraft purchase commitments weakens to less than 120%; 3) debt-to-equity leverage rises more than Moody's expects given potential aircraft impairment charges and is not expected to decline; or 4) encumbered assets increase materially.

The review for downgrade indicates that rating upgrades are unlikely. The ratings could be confirmed if: 1) Moody's expects that the company will generate profitability and cash flow ratios consistent with current ratings by 2023, 2) liquidity coverage (one-year) remains above 120%, 3) fleet residual value risks decline, and 4) the company's management of capital and leverage remain strong.

Voyager Aviation Holdings, LLC (Voyager)

Moody's affirmation of Voyager's B1 corporate family and B2 long-term senior unsecured ratings considers that the risks from challenging operating conditions from disruption in the aviation sector relating to the coronavirus outbreak are already reflected its ratings.

Voyager's ratings reflect the company's small competitive scale compared to rated peers, higher aircraft and airline lessee concentrations, and limited alternate liquidity but also the relatively low average age and long average remaining lease term of the company's aircraft fleet and the stronger average credit quality of the company's airline customers compared to certain peers. Moody's expects that these factors should provide lower asset and earnings volatility that offsets risks associated with the company's less-granular fleet and customer exposures relative to rated peers.

Most of Voyager's funding is provided by amortizing secured debt whose debt service is supported by the cash flows generated by pledged aircraft and associated leases. Voyager's next senior unsecured debt maturity is in 2021. The company has no committed revolving credit facility, which limits its liquidity strength compared to peers, but the company also has no firm aircraft purchase commitments. Voyager's credit challenges include its exposure concentrations to wide-body aircraft and certain airline lessees, owing to its small fleet of 18 aircraft. Additionally, the company's leverage is higher than peer average.

Voyager's outlook remains negative, reflecting the weakened operating performance of airlines relating to the coronavirus pandemic and the anticipated negative effects on Voyager's earnings and cash flow over the next 12-18 months.

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

The negative outlook indicates that rating upgrades are unlikely over the next 12-18 months. However, the ratings could be upgraded if the company: 1) improves fleet risks by diversifying its aircraft investments to include new vintage narrow-body aircraft; 2) significantly reduces airline customer and fleet concentrations; 3) generates stronger financial performance that results in a sustainable ratio of net income to average assets of at least 1.0% annualized; and 4) permanently reduces its ratio of debt to tangible net worth to less than 3.5x.

Moody's could downgrade Voyager's ratings if the company: 1) increases its debt/tangible net worth ratio to more than 4.0x; 2) increases the proportion of secured debt in its funding structure to more than 60%; 3) experiences a deterioration operating prospects including from a prolonged disruption in air travel and weakening of airline credit quality; or 4) weakens its liquidity position.

The principal methodology used in these ratings was Finance Companies Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187099. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

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.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

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 Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

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.

Mark L. Wasden
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Ana Arsov
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

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