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”, 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 information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, 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.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             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.

 

4.             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.     

 

5.             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.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether 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 takes action on 17 Turkish bank ratings, changes outlooks to stable

16 Aug 2022

Stockholm, August 16, 2022 -- Moody's Investors Service ("Moody's") has today downgraded the foreign-currency long-term deposit ratings of 10 banks in Turkiye and the foreign-currency long-term senior unsecured debt ratings of seven banks. At the same time, Moody's has affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of 16 Turkish banks. The outlooks on the long-term deposit, senior unsecured debt and issuer ratings - where applicable - of 16 banks were changed to stable from negative. At the same time, Moody's has placed on review for upgrade the long-term ratings of Sekerbank T.A.S. (Sekerbank).

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL468695 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

The rating action follows Moody's downgrade of the Government of Turkiye's bond rating to B3 with stable outlook from B2 with negative outlook, which also resulted in the lowering of the ceilings for foreign-currency to B3 from B2 and local-currency to B1 from Ba3. For further information on the sovereign rating action, please refer to Moody's press release published on 12 August 2022: "Moody's downgrades Turkiye's ratings to B3, changes outlook to stable" (https://www.moodys.com/research/--PR_468377).

RATINGS RATIONALE

Moody's affirmation of  the BCAs of 16 Turkish banks reflects the rating agency's view that operating conditions faced by Turkish banks remain challenging. Nevertheless, these difficulties are captured by the Very Weak + macro profile of Turkiye and countered by relatively resilient financial metrics. Bank-specific considerations are given later in this press release.

The Very Weak + macro profile incorporates the rising pressures on Turkiye's balance of payments position with potential further weakening of the country's foreign-currency reserves position and the authorities' increasingly unorthodox policy measures, which have not yet succeeded in stabilising the currency. The macro profile also captures unpredictable policymaking that has resulted in very high inflation, the weak credibility of the central bank, low investor confidence and the banking system's still significant levels of short-term wholesale foreign-currency funding and foreign-currency deposits, which are equivalent to 45% of total liabilities of the banking sector.

Despite these challenges the macro profile takes into account the fact that there has been some improvement in Turkish banks' funding and liquidity profiles. Reliance on short-term wholesale foreign funding has reduced to USD59 billion at end-May 2022 from USD75 billion at end-December 2018, while at the same time foreign currency liquidity has increased (USD104 billion at end-May 2022). Moody's also notes that Turkish banks have continued to maintain access to the syndicated loans market throughout the coronavirus pandemic and periods of heightened risks with respect to domestic and global operating conditions.  

The rating agency also highlighted the relatively resilient performance of the Turkish banks, despite the challenging operating environment. Turkish banks have reported improvements in profitability in recent quarters  primarily driven by robust business volumes, strong income from investments in Turkish government securities and widening margins. Internal capital generation continues to support Turkish banks' capital levels. In addition, there has been only a limited increase in the nominal stock of problem loans. However, banks' asset quality remains vulnerable to an eventual deterioration in borrower repayment capacity given Turkiye's very high inflation and the consistent deterioration in the value of the Turkish lira. The banks' BCAs adequately balance these downside risks against their liquidity and capital buffers.

-- ADJUSTED BCAS AFFIRMED DUE TO UNCHANGED UPLIFT FROM AFFILATE SUPPORT

A number of Turkish banks are owned by overseas banking groups which benefits their ratings via the inclusion of affiliate support. Moody's sees this support as unchanged.

Consequently the Adjusted BCAs of five banks were affirmed. The Adjusted BCAs of Alternatifbank A.S. (Alternatifbank), Denizbank A.S. (Denizbank) and HSBC Bank A.S. (Turkey) (HSBC Turkey) benefit from three notches of uplift, while the Adjusted BCAs of QNB Finansbank A.S. (QNB Finansbank) and Turk Ekonomi Bankasi A.S. (TEB) benefit from two notches of uplift. The difference in uplifts reflects the differences in relative creditworthiness between parents and subsidiaries, as well as the rating agency's expectations of extraordinary support in case of need.

-- DOWNGRADE OF LONG-TERM DEPOSIT, ISSUER AND SENIOR UNSECURED DEBT RATINGS

PROBABILITY OF GOVERNMENT SUPPORT IS UNCHANGED WHILE CAPACITY TO PROVIDE SUPPORT HAS WEAKENED, DRIVING DEPOSIT RATING DOWNGRADES

The downgrade of Turkiye's bond rating to B3 from B2 marks a reduction in the government's capacity to support its banks, even though Moody's expectations of the probability of such support is unchanged.

The lower sovereign rating led to a one-notch downgrade of the long-term deposit ratings of T.C. Ziraat Bankasi A.S. (Ziraat Bank) and Turkiye Vakiflar Bankasi T.A.O. (VakifBank).

The ratings of four banks - Turkiye Garanti Bankasi A.S. (Garanti BBVA), Akbank T.A.S. (Akbank),Yapi ve Kredi Bankasi A.S.(YapiKredi) and Export Credit Bank of Turkiye A.S. (EXIM Bank) - that previously benefited from one-notch of uplift from government support no longer receive any uplift as their long-term deposit and issuer ratings - where applicable - are now in line with Turkiye's long-term issuer rating at B3. As a result, long-term deposit and issuer ratings - where applicable - of these banks were downgraded by one notch.  

DEPOSIT RATINGS DOWNGRADED OWING TO LOWER SOVEREIGN CEILINGS

Following the downgrade of the sovereign rating to B3 from B2 Moody's also lowered Turkiye's foreign-currency country ceiling to B3 from B2 and local-currency ceiling to B1 from Ba3.

As a consequence, the long-term foreign-currency deposit ratings of five Turkish banks were downgraded and are constrained at the foreign-currency country ceiling. These banks are: QNB Finansbank, Denizbank, TEB, HSBC Turkey and Alternatifbank.

-- STABLE OUTLOOK

The long-term deposit, issuer and senior unsecured ratings - where applicable - of all the Turkish banks rated by Moody's, except Sekerbank, now have a stable outlook. This is in line with the stable outlook on the sovereign rating. The outlook balances resilience of the Turkish banks' performance and solvency profiles against the persistently challenging domestic operating environment.

REVIEW FOR UPGRADE OF SEKERBANK'S LONG-TERM RATINGS

In contrast to the general trend, Moody's placed all of Sekerbank's ratings, except short-term ratings, on review for upgrade reflecting the material idiosyncratic improvements in the bank's solvency profile following the improvements in the bank's asset quality and profitability metrics over the last three years.

Following a major loss in 2019 due to a spike in loan loss charges, Sekerbank's profitability has now substantially recovered. Sekerbank's strengthening profitability is underpinned by its established and growing domestic franchise coverage in Turkiye, reflected in the considerable extent of retail deposits as a portion of deposits at 72% of total deposits and the granularity of the bank's deposit base, which compares favorably with Turkish banking sector average and underpins the bank's strong net interest margin of 4.9% in 2021.

The rating agency's review for upgrade of Sekerbank will also consider the sustainability of asset quality improvements reflected in the decline in the bank's problem loans to gross loans to 5.4% as of June 2022 (December 2019: 13.4%). The improvement was underpinned by the bank's enhanced risk monitoring and management practices following the spike in problem loans in 2019. Nevertheless, Moody's notes that the bank's current problem loans ratio is still above the Turkish banking sector average and the bank has a high exposure to the SME sector at 56% of total loans.

Moody's expects the problem loans ratio to increase, which could also weaken the bank's profitability due to higher expected credit losses, driven by challenges in the operating environment stemming constraining borrower repayment capacity given Turkiye's very high inflation and consistent weakening in the value of the lira.

BANK SPECIFIC CONSIDERATIONS

Akbank T.A.S. (Akbank)

Moody's affirmed the BCA and Adjusted BCA of Akbank at b3 and downgraded the long-term foreign-currency and local-currency deposit ratings and the foreign-currency senior unsecured debt rating to B3 from B2.

Akbank's b3 BCA reflects the bank's resilient core capital, profitability and provisioning coverage against problem loans offset by high asset risk in a very weak operating environment and significant reliance on market funding.

Moody's assessment of a high probability of government support now results in no uplift, from one-notch previously for Akbank's ratings, reflecting Turkiye's lower issuer rating of B3, which is at the same level as the bank's standalone BCA.

Alternatifbank A.S. (Alternatifbank)

Moody's affirmed the BCA of Alternatifbank at caa1, the Adjusted BCA at b1 and long-term local-currency deposit rating at B1. At the same time, Moody's downgraded the bank's long-term foreign-currency deposit rating to B3 from B2.

Alternatifbank's BCA is driven by modest profitability and capitalisation and moderate problem loans, mitigated by robust liquidity and the benefit of parental funding.

Alternatifbank's b1 Adjusted BCA reflects a three-notch uplift from the bank's caa1 BCA based on Moody's assumption of very high probability of affiliate support from The Commercial Bank (P.S.Q.C.) (CBQ, A3 Stable, ba1), based on the close brand affiliation of the two banks, 100% ownership and Alternatifbank's status as a material subsidiary of CBQ.

The downgrade of Alternatifbank's long-term foreign-currency deposit rating was driven by Turkiye's lower foreign currency ceiling at B3.

Denizbank A.S. (Denizbank)

Moody's affirmed the BCA of Denizbank at caa1, the Adjusted BCA at b1 and long-term local-currency deposit rating at B1. At the same time, Moody's downgraded the bank's long-term foreign-currency deposit rating to B3 from B2.

The standalone BCA of caa1 is driven by Denizbank's relatively weak asset quality in a challenging operating environment. At the same time the bank's BCA is supported by robust liquidity and capital and high loan loss coverage.

Denizbank's b1 Adjusted BCA reflects a three-notch uplift from the bank's caa1 BCA based on Moody's assumption of very high probability of affiliate support from Emirates NBD PJSC (ENBD, A2 stable, baa3), based on 100% ownership and Denizbank's status as a material and strategically important subsidiary of ENBD.

The downgrade of Denizbank's long-term foreign-currency deposit rating was driven by Turkiye's lower foreign-currency ceiling at B3.

Export Credit Bank of Turkiye A.S. (EXIM Bank)

Moody's affirmed the BCA of EXIM Bank and the Adjusted BCA at b3. At the same time, Moody's downgraded the long-term foreign-currency and local-currency issuer ratings to B3 from B2.

Turk EXIM Bank's b3 BCA is driven by modest profitability and significant reliance on wholesale funding in a weak operating environment, mitigated by negligible problem loans and moderate capitalisation.

Moody's assessment of a very high probability of government support now results in no uplift, from one-notch previously, for EXIM Bank's deposit ratings, reflecting Turkiye's lower issuer rating of B3.

HSBC Bank A.S. (Turkey) (HSBC Turkey)

Moody's affirmed the BCA of HSBC Turkey at caa1, the Adjusted BCA at b1 and long-term local-currency deposit rating at B1. At the same time, Moody's downgraded the long-term foreign-currency deposit rating to B3 from B2.

HSBC Turkey's caa1 BCA is driven by sound profitability and liquidity, offset by expected pressure stemming from the very weak operating environment on the bank's asset quality and its capitalisation levels.

HSBC Turkey's b1 Adjusted BCA reflects a three-notch uplift from the bank's caa1 BCA based on Moody's assumption of very high probability of affiliate support from HSBC Holdings plc (A3 stable, a3) based on HSBC Turkey's enhanced strategic fit with the group, following completion of its strategic realignment, as well as its improved performance and strong brand association.

The downgrade of HSBC Turkey's long-term foreign-currency deposit rating was driven by Turkiye's lower foreign-currency ceiling at B3.

Nurol Investment Bank A.S. (Nurol)

Moody's affirmed the BCA and Adjusted BCA of Nurol at caa2 and affirmed the long-term foreign-currency and local-currency issuer ratings at Caa2.

Nurol's caa2 BCA is supported by the bank's strong profitability. This is counterbalanced by the bank's lack of business diversification, significant borrower and sector concentration risks, weakened capitalisation and high reliance on market funding.

The affirmation of Nurol's issuer ratings reflects the affirmation of the bank's BCA, the fact that these ratings are not constrained by Turkiye's local-currency and foreign-currency ceilings and the fact that Moody's assessment of a low probability of government support results in no uplift for the bank's ratings.

Odea Bank A.S. (Odea)

Moody's affirmed the BCA and Adjusted BCA of Odea at caa1 and affirmed the long-term foreign-currency and local-currency deposit ratings at Caa1.

Odea's caa1 standalone BCA reflects high problem loans, relatively low profitability and modest capitalisation in a very weak operating environment, only partly mitigated by moderate dependence on wholesale funding.

The affirmation of Odea's deposit ratings reflects the affirmation of the bank's BCA, the fact that these ratings are not constrained by Turkiye's local-currency and foreign-currency ceilings and the fact that Moody's assessment of a low probability of government support results in no uplift for the bank's ratings.

QNB Finansbank A.S. (QNB Finansbank)

Moody's affirmed the BCA of QNB Finansbank at b3, the Adjusted BCA at b1 and the long-term local-currency deposit rating at B1. At the same time, Moody's downgraded the bank's long-term foreign-currency deposit rating to B3 from B2.

QNB Finansbank's b3 BCA is supported by the bank's established franchise in Turkiye, moderate capital ratios and robust profitability. At the same time, the bank's BCA is constrained by its relatively weak asset quality, which is pressured further by the challenging operating environment, and its high reliance on wholesale funding, although mitigated to some extent by parental funding.

QNB Finansbank's b1 Adjusted BCA reflects a two-notch uplift from the bank's b3 BCA based on Moody's assumption of very high probability of affiliate support from Qatar National Bank (Q.P.S.C) (QNB, Aa3 stable, baa1) driven by QNB Finansbank's strategic importance to QNB and greater integration and increasing significance of QNB Finansbank to QNB.

The downgrade of QNB Finansbank's long-term foreign-currency deposit rating was driven by Turkiye's lower foreign currency ceiling at B3.

T.C. Ziraat Bankasi A.S. (Ziraat Bank)

Moody's affirmed the BCA and Adjusted BCA of Ziraat Bank at caa1 and downgraded the long-term foreign-currency and local-currency deposit ratings to B3 from B2.

Ziraat Bank's caa1 BCA is driven by moderate capital which is susceptible to a depreciation of the Turkish lira and moderate profitability in a very weak operating environment, mitigated by a relatively low stock of problem loans, although expected to increase, and robust liquidity.

Moody's assessment of very high probability of government support now results in a one-notch uplift, from two-notches previously, for Ziraat Bank's deposit ratings, reflecting Turkiye's lower issuer rating at B3.

Turk Ekonomi Bankasi A.S. (TEB)

Moody's affirmed TEB's BCA at b3, the Adjusted BCA at b1 and the long-term local-currency deposit rating at B1. At the same time, Moody's also downgraded the bank's long-term foreign-currency deposit rating to B3 from B2.

TEB's b3 BCA reflects the bank's sound profitability and parental funding supporting liquidity. These strengths are moderated by high asset risk in a very weak operating environment and relatively modest core capital buffers.

TEB's b1 Adjusted BCA reflects a two-notch uplift from the bank's b3 BCA based on Moody's assumption of high probability of affiliate support from BNP Paribas (BNPP, Aa3/Aa3 stable, baa1), based on its strong brand association and ownership around 70%.

The downgrade of TEB's foreign currency deposit rating was driven by Turkiye's lower foreign currency ceiling at B3.

Turkiye Garanti Bankasi A.S. (Garanti BBVA)

Moody's affirmed the BCA of Garanti BBVA and the Adjusted BCA at b3 and downgraded the long-term foreign-currency and local-currency deposit ratings to B3 from B2.

Garanti BBVA's b3 BCA reflects the bank's sound risk management, strong profitability and capital and relatively lower market funding balanced against a very weak operating environment.

Moody's assessment low probability of affiliate support from the parent, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA; A2 stable, baa2), results in no uplift to the bank's ratings.

Moody's assessment of high probability of government support now results in zero-notch uplift, from one-notch previously, for Garanti BBVA's deposit ratings, reflecting Turkiye's lower issuer rating of B3.

Turkiye Halk Bankasi A.S. (Halkbank)

Moody's affirmed the BCA and Adjusted BCA of Halkbank at caa3 and the long-term foreign-currency and local-currency deposit ratings at B3.

Halkbank's caa3 BCA is driven by the bank's weak capital, susceptible to a further depreciation of the Turkish lira, lack of international market access and governance considerations and legal risk in a very weak operating environment in Turkiye.

Moody's assessment of very high probability of government support assumptions provides an unchanged three-notches uplift for Halkbank's deposit ratings.

Turkiye Is Bankasi A.S. (Isbank)

Moody's affirmed the BCA and Adjusted BCA of Isbank at caa1 and the long-term foreign-currency and local-currency deposit ratings at B3.

Isbank's caa1 BCA is driven by moderate consolidated capital and a relatively elevated stock of problem loans in a very weak operating environment, mitigated by strong profitability and liquidity.

Moody's assessment of high probability of government support assumptions provides an unchanged one-notch uplift from the BCA to Isbank's deposit ratings.

Turkiye Sinai Kalkinma Bankasi A.S. (TSKB)

Moody's affirmed the BCA and the Adjusted BCA of TSKB at caa1 and long-term foreign-currency and local-currency issuer ratings at B3.

TSKB's caa1 BCA is driven by the bank's modest capitalisation and high reliance on wholesale funding in a very weak operating environment. These are partially offset by the low level of problem loans, robust profitability and the favorable term structure of the wholesale funding.

Moody's assessment of high probability of government support assumptions provides an unchanged one-notch uplift for TSKB's issuer ratings as previously.

Turkiye Vakiflar Bankasi T.A.O. (VakifBank)

Moody's affirmed the BCA and Adjusted BCA of VakifBank at caa2 and downgraded the long-term foreign-currency and local-currency deposit ratings and the senior unsecured debt rating to B3 from B2.

VakifBank's caa2 standalone BCA is driven by high asset risk, still moderate capital and high dependence on wholesale funding in a weak operating environment, only partly mitigated by satisfactory profitability and strong liquidity.

Moody's assessment of very high probability of government support now results in two-notches uplift, from three-notches previously, for VakifBank's deposit ratings, reflecting Turkiye's lower issuer rating of B3.

Yapi ve Kredi Bankasi A.S. (YapiKredi)

Moody's affirmed the BCA and Adjusted BCA of YapiKredi at b3 and downgraded the long-term local-currency and foreign-currency deposit ratings and the senior unsecured debt rating to B3 from B2.

YapiKredi's b3 BCA is driven by the bank's moderate capital and relatively high problem loans in a very weak environment, mitigated by strong liquidity and profitability.

Moody's assessment of high probability now results in zero-notch uplift, from one-notch  previously, for YapiKredi's deposit ratings, reflecting Turkiye's lower issuer rating of B3.

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

The ratings could be upgraded  due to a combination of following: (1) a sustained improvement in the domestic operating environment, (2) strengthening solvency profiles with resilient asset quality and strong profitability, (3) further reduction of reliance on market funding while maintaining the liquidity buffers, or (4) an upgrade of the government's ratings.

The ratings could be downgraded due to: (1) a further deterioration in the operating conditions of Turkish banks, including further currency depreciation and weaker investor confidence, (2) a material increase in problem loans or a deterioration in profitability or (3) a further downgrade of the government's rating or foreign-currency and local-currency ceilings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks Methodology published in July 2021 and available at https://ratings.moodys.com/api/rmc-documents/71997. Alternatively, please see the Rating Methodologies page on https://ratings.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 August 2022 entitled "Mapping National Scale Ratings from Global Scale Ratings Methodology". 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_1280297.

The local market analyst for Akbank T.A.S., T.C. Ziraat Bankasi A.S., Turkiye Garanti Bankasi A.S., Turkiye Halk Bankasi A.S., Turkiye Is Bankasi A.S., Turkiye Sinai Kalkinma Bankasi A.S., Yapi ve Kredi Bankasi A.S. and Odea Bank A.S. ratings is Nitish Bhojnagarwala,  +971 (423) 795-63. The local market analyst for Turk Ekonomi Bankasi A.S. ratings is Francesca Paolino, +971 (423) 795-68.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings announced here are a mix of solicited and unsolicited credit ratings. For additional information, please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com. 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=PBC_ARFTL468695 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:

• EU Endorsement Status

• UK Endorsement Status

• Rating Solicitation

• Issuer Participation

• Participation: Access to Management

• Participation: Access to Internal Documents

• 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 on https://ratings.moodys.com/rating-definitions.

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 issuer/deal page for the respective issuer on https://ratings.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 entities or their designated agent(s) and issued with no amendment resulting from that disclosure.

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://ratings.moodys.com/documents/PBC_1288235.

The below contact information is provided for information purposes only. For disclosures on the lead rating analyst and the Moody's legal entity that issued the rating, please see the issuer/deal page on https://ratings.moodys.com for each of the ratings covered.

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

Items color coded in purple in this Press Release relate to unsolicited ratings for a rated entity which is non-participating.

Please see https://ratings.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 issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating.

Niclas Boheman
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service (Nordics) AB
Norrlandsgatan 20
Stockholm, 111 43
Sweden
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Henry MacNevin
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service (Nordics) AB
Norrlandsgatan 20
Stockholm, 111 43
Sweden
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

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

Moodys.com