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Rating Action:

Moody's takes negative rating action on Peruvian banks following sovereign downgrade; stable outlook

02 Sep 2021

New York, September 02, 2021 -- Moody's Investors Service ("Moody's") has today downgraded the long-term deposit ratings of Banco de la Nación and Scotiabank Perú S.A.A. (Scotiabank). Moody's also downgraded the long-term counterparty risk ratings and assessments of Banco de la Nación, Banco de Crédito del Perú (BCP), Banco BBVA Perú S.A. (BBVA) and Banco Internacional del Perú S.A.A. -- Interbank. Moody's affirmed all other ratings and assessments assigned to these five Peruvian banks.

The outlook on Banco de la Nación's and Scotiabank's ratings has been changed to stable from negative, and the outlook on BCP's, BBVA's and Interbank's ratings remains stable, in line with the stable outlook on the Government of Peru's Baa1 sovereign bond rating.

A complete list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

These rating actions follow the downgrade of the sovereign bond rating to Baa1 from A3, which was announced on 1 September 2021 (https://www.moodys.com/research/--PR_452005). The outlook on the sovereign bond rating was changed to stable.

DOWNGRADE OF DEPOSIT RATINGS, COUNTERPARTY RISK RATINGS, AND COUNTERPARTY RISK ASSESSMENTS

The downgrade of Banco de la Nación's long-term local and foreign currency deposit ratings to Baa1, from A3, followed the downgrade of Peru's sovereign bond rating to Baa1, incorporating the bank's full ownership by the Peruvian Ministry of Economy and Finance and its policy mandate as the financial agent of Peru's national, regional and local administrations, as well as for government-owned enterprises. Moody's assessment of the bank as government-backed results in a one-notch uplift from its standalone baseline credit assessment (BCA) of baa2.

The downgrade of Scotiabank's long-term deposit ratings reflects the downgrade of the sovereign rating to Baa1, from A3, that no longer leads to any uplift to the deposit rating from the bank's adjusted BCA of baa1, which is now at the same level of Peru's sovereign rating.

The downgrade of Banco de la Nación's, BCP's, BBVA's and Interbank's long-term Counterparty Risk Assessments (CR Assessments) to Baa1(cr), from A3(cr), and the local and foreign currency Counterparty Risk Ratings (CRRs) to Baa1, from A3, reflected the downgrade of Peruvian government's ratings. The CR Assessments and CRRs of these banks are now placed at the level of the banks' deposit ratings, reflecting Moody's view that the willingness of the Peruvian government to support any of these banks' obligations is limited by its own capacity.

AFFIRMATION OF BANCO DE LA NACIÓN'S DEPOSIT RATINGS AND BCA; STABLE OUTLOOK

Moody's affirmed Banco de la Nación's baa2 BCA reflecting the bank's low asset risks exhibited by its holdings of high-quality liquid assets, which represented 80.6% of tangible banking assets as of June 2021. This asset structure supports Banco de la Nación's relatively low 90+ days nonperforming loans (NPLs) ratio of 2.5% in the period, compared to the system's average of 3.3%. The bank benefits from preferential access to a large base of inexpensive, though highly concentrated, judicial and administrative deposits related to the government, which resulted in a low loan-to-deposit ratio of 18.3% in June 2021.

Banco de la Nación's tangible common equity (TCE) to risk-weighted assets (RWAs) is ample at 13.5% and will benefit from lower dividend payment requirements to the government. The bank's capital is supported by its high core earnings generation, resulting from historically ample net interest margins (NIMS), low credit costs, and strong fee income, offsetting the high operating cost structure. The decline of interest income in the first half of 2021 resulted from the bank's high holdings of government securities and increased low-yielding lending to a fellow government-owned bank, that pressured its NIM to 2.8% in June 2021, while net income to tangible assets fell to 0.97%, from a 3.31% pre-pandemic level in 2019.

The outlook was changed to stable from negative in line with the stable outlook on Peru's Baa1 sovereign bond rating.

AFFRIMATION OF SCOTIABANK'S BCA, STABLE OUTLOOK

In affirming Scotiabank's baa2 BCA, Moody's notes its improved TCE to RWAs to 15.5% as of June 2021, and the well positioned franchise in Peru that provides Scotiabank with its steady deposit-based funding profile, strong market shares of 15% of loans and 12% of deposits in the system (including banks and other lenders), as well as historically high earnings generation. Net income to tangible assets averaged 2.03% between 2016-2019, a level that Moody's expects Scotiabank to recover to, in the next 12 months, supported by continued economic growth, higher business volumes and lower credit costs compared to 2020 levels. The weak performance reported in 2020 was impacted by an 83% increase in provisioning expenses in 2020 and the increased exposure to riskier assets, including loans to micro, small and medium-sized enterprises (SMEs), and credit card loans. While profitability in the first half of 2021 increased to 0.7%, from 0.3% at the end of 2020, it still remained below historic levels. The bank's BCA takes into account asset risk challenges that is indicated by the bank's still high NPL ratio of 4.7% in June 2021, which, however, is well mitigated by the bank's solid loss absorption buffers, such as its reserve coverage of over 200% NPLs, as well as its adequate capitalization.

Scotiabank's ratings continue to benefit from Moody's assessment of a high probability that its parent Bank of Nova Scotia (BNS, Aa2 stable) will provide financial support to its Peruvian subsidiary in the event of stress. The high affiliate support from BNS, in Moody's view, reflects the strategic importance of the subsidiaries in the Pacific Alliance that accounted for around 40% of BNS's total earnings. The incorporation of affiliate support lifts the bank's baa2 BCA by one notch to an adjusted BCA of baa1.

The change in outlook to stable from negative reflects the stable outlook on BNS.

AFFIRMATION OF BCP'S DEPOSIT RATINGS AND BCA, STABLE OUTLOOK

The affirmation of BCP's Baa1 deposit ratings is aligned to Moody's expectation that the bank will maintain manageable asset risks, a solid earnings generation capacity and sound capitalization based on its leading market position, diversified earnings generation and strong pricing power in various banking segments in Peru, including a deep access to deposit funding.

The bank's asset quality benefits from a diversified loan portfolio and disciplined risk management and underwriting policies that supports an NPL ratio of 2.9% as of June 2021 that is below peers in Peru. The bank also maintains a high reserve coverage that accounted for 2.4x NPLs in June 2021. BCP's exposure to the SME segment stood at 13% as of June 2021, well above peers, exposing the bank to higher asset risk volatility. This risk is, however, partially mitigated by the use of government guarantees related to Reactiva Perú.

BCP's net income to tangible assets increased 70 basis points since the end of 2020, reaching to 1.2% at the end of June 2021. The improvement in bottom line results benefitted from lower provisioning needs that fell to 2.1% of gross loans from 4% in 2020, and a high NIM of 3.7% as of June 2021. Profitability supported BCP's TCE to RWAs, that stood at 11.8% (consolidated with MiBanco) in June 2021. Moody's expects profitability to continue to improve, boosted by the effect of rising interest rates in Peru and recovering loan growth.

BCP's Baa1 deposit and senior unsecured debt ratings incorporate one notch of uplift from its baa2 Adjusted BCA because of our assumption of a high probability of government support, given the bank's systemic importance as the largest deposit taker in Peru.

AFFIRMATION OF BBVA'S DEPOSIT RATINGS AND BCA, STABLE OUTLOOK

By affirming BBVA's Baa1 deposit ratings, Moody's acknowledges the bank's good asset quality and high earnings generation capacity that will continue to support its moderate capitalization. The bank's asset risk metrics are based on disciplined risk policies and a well-balanced loan mix. BBVA retains a strong earnings power as the second-largest banking franchise in Peru.

Performance started to recover in June 2021, with net income to tangible assets increasing to 0.9% in June 2021, from 0.6% in 2020, benefiting from lower provisions and efficiency gains. BBVA's NIM remained ample at 3.1% in June 2021 and will likely continue to benefit from higher interest rates and its strategy to expand into higher-margined consumer lending in light of a continued economic recovery. Moreover, BBVA has sizable exposures to lower-risk corporate and residential mortgages, that combined accounted for almost 60% of gross loans in June 2021. This lower risk exposures will help to mitigate impacts related to the spread of the Delta variant that could impact business sentiment, which would again hit the repayment capacity of SMEs and consumers. The bank maintains a conservative reserve coverage of 2.2x of NPLs as of June 2021. Capital, measured by TCE/RWAs, remained moderate at 11.2% in June 2021, slightly below its domestic peers, due to consistently high dividend payouts.

BBVA's deposit ratings of Baa1 incorporate Moody's assessment of a moderate likelihood of government support, that, in Moody's view, could be provided in case of a stress scenario given the bank's systemic importance in Peru. The incorporation of government support results in one notch of uplift from its Adjusted BCA of baa2, because of the bank's large base of granular low-cost deposits.

AFFIRMATION OF INTERBANK'S DEPOSIT RATINGS AND BCA, STABLE OUTLOOK

The affirmation of Interbank's baa2 BCA reflects the bank's ongoing recovery in its profitability and improved asset quality over the last two quarters, as well as its core-deposit funding base. The BCA also considers Interbank's modest reliance on market funds relative to peers in Peru, and its high liquidity base that rose to 38.7% of tangible banking assets as of June 2021.

With 47% of total loans consisting of unsecured and secured products to individuals, this portfolio mix provides Interbank with relevant portfolio granularity, which also resulted in lower rescheduled loans triggered by the pandemic relative to peers. As of June 2021, the bank's NPL ratio improved to 2.8%, from 3.2% at the end of 2020, and reserve coverage remained above 220% providing the bank with a solid buffer against unexpected increases in charge-offs.

Interbank's capitalization remains lower than peers in Peru, with a TCE to RWA of 10.6% as of June 2021, but we expect that the continued improvement in earnings generation to pre-pandemic levels will support its replenishment capacity. In the first half of 2021, Interbank reported net income to tangible assets of 1.1%, up from 0.4% in 2020, albeit still below the 2.4% in 2019. Future profitability will depend on higher portfolio turnover that will likely take advantage of higher domestic interest rates in the second half of 2021 and into 2022.

Interbank's Baa1 deposit and senior unsecured debt ratings benefit from one notch of uplift from its adjusted BCA of baa2 and reflect our assumption of a moderate probability of government support in case of stress, which derives from its systemic importance and deposits market share of 11% as of June 2021 (including banks and other lenders).

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

A deterioration in the economic conditions that have so far supported solid fundamentals in the financial system could negatively affect the financial strength of these Peruvian banks. Specifically, their BCAs would suffer if institutional strength weakens because of policies that disrupt the status quo of the central bank, the local regulator, or the Ministry of Finance.

Peruvian banks benefit from an independent central bank, a fiscal responsibility law, strong banking supervision and regulation, multiple free-trade agreements, and the economic chapter of the 1993 constitution, which have all ensured policy predictability and continuity across administrations. Threats to these norms would be credit negative for all banks. Various legislative actions to provide relief during the pandemic for individuals and SMEs have exposed the banks to increased stress. However, banks have been able to absorb these shocks with the coordinated efforts of the Peruvian national government, the bank regulator, and the central bank. Moreover, large and diversified banks, such as BCP, BBVA, Interbank and Scotiabank, are better equipped to adapt to new operating conditions through their ample underwriting expertise, access to low-cost funding and diversified complementary services.

BANCO DE LA NACIÓN

Less volatile profitability, a more granular deposit base, and a stabilization of capital metrics would have a positive impact on the bank's BCA. However, supported deposit ratings would not be affected by a BCA increase because they are already in line with the government's Baa1 rating.

Conversely, the downgrade of Peru's sovereign bond rating would exert downward pressure on the bank's deposit ratings. A significant deterioration in the bank's capitalization or an increase in asset risks, or a sudden withdrawal of a substantial portion of its funding could exert downward pressure on its BCA. In case of a BCA upgrade, however, the bank's deposit ratings would not have upward rating pressure because the bank's deposits are already at the same level of the sovereign debt rating.

SCOTIABANK

Scotiabank's BCA could be upgraded if it posts a significant recovery in its asset risk and profitability, while maintaining high capital. Conversely, downward pressure could arise if Scotiabank experiences material deterioration of its asset quality or if its capitalization weakens significantly.

BCP

BCP's baa2 BCA could face upward pressure with a recovery in profitability that would allow for a higher capitalization, in an indication of lower asset quality pressures. However, an upgrade of the BCA would not transfer into an upgrade of supported ratings. Negative drivers to BCP's BCA could arise from significant asset quality deterioration, weakening capitalization and declining profitability.

BBVA

Upward pressure on the BCA would accumulate from a higher capitalization and sustained improvements in profitability without an increase in delinquencies and credit costs. However, an upgrade of the BCA would not transfer into an upgrade of supported ratings. Conversely, a material deterioration in asset quality resulting from further expansion into unsecured consumer lending and a prolonged period of recovery of profitability, which would also put into question the recovery of the bank's capitalization, would lead to downward pressure on the bank's BCA and supported ratings.

INTERBANK

An upgrade of Interbank's baa2 BCA could result from a material reduction in asset risk, higher capitalization combined with profitability in excess of historical averages. On the other hand, the BCA could face downward pressure should asset risk and profitability not recover sufficiently.

The principal methodology used in these ratings was Banks Methodology published in July 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

ISSUERS AND RATINGS AFFECTED

Downgrades:

..Issuer: Banco BBVA Perú S.A.

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

.... Long Term Counterparty Risk Rating (Local Currency), Downgraded to Baa1 from A3

..Issuer: Banco de Crédito del Perú

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

.... Long Term Counterparty Risk Rating (Local Currency), Downgraded to Baa1 from A3

..Issuer: Banco de Crédito del Perú, Panama Branch

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Longer Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

..Issuer: Banco de la Nación

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

.... Long Term Counterparty Risk Rating (Local Currency), Downgraded to Baa1 from A3

.... Long Term Deposit Rating (Foreign Currency), Downgraded to Baa1 from A3, Stable from Negative

.... Long Term Deposit Rating (Local Currency), Downgraded to Baa1 from A3,Stable from Negative

..Issuer: Banco Internacional del Perú S.A.A.

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

.... Long Term Counterparty Risk Rating (Local Currency), Downgraded to Baa1 from A3

..Issuer: Banco Internacional del Perú (Panama Branch)

.... Long Term Counterparty Risk Assessment, Downgraded to Baa1(cr) from A3(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Downgraded to Baa1 from A3

..Issuer: Scotiabank Perú S.A.A.

....Long Term Deposit Rating (Foreign Currency), Downgraded to Baa1 from A3, Stable from Negative

....Long Term Deposit Rating (Local Currency), Downgraded to Baa1 from A3, Stable from Negative

Affirmations:

..Issuer: Banco BBVA Perú S.A.

.... Adjusted Baseline Credit Assessment, Affirmed baa2

.... Baseline Credit Assessment, Affirmed baa2

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

.... Short Term Counterparty Risk Rating (Local Currency), Affirmed P-2

.... Short Term Deposit Rating (Foreign Currency), Affirmed P-2

.... Short Term Deposit Rating (Local Currency), Affirmed P-2

.... Long Term Deposit Rating (Foreign Currency), Affirmed Baa1, Stable

.... Long Term Deposit Rating (Local Currency), Affirmed Baa1, Stable

..Issuer: Banco de Crédito del Perú

.... Adjusted Baseline Credit Assessment, Affirmed baa2

.... Baseline Credit Assessment, Affirmed baa2

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

.... Short Term Counterparty Risk Rating (Local Currency), Affirmed P-2

.... Short Term Deposit Rating (Foreign Currency), Affirmed P-2

.... Short Term Deposit Rating (Local Currency), Affirmed P-2

....Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed Baa1, Stable

....Long Term Deposit Rating (Foreign Currency), Affirmed Baa1, Stable

....Long Term Deposit Rating (Local Currency), Affirmed Baa1, Stable

..Issuer: Banco de Crédito del Perú, Panama Branch

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

....Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed Baa3

..Issuer: Banco de la Nación

.... Adjusted Baseline Credit Assessment, Affirmed baa2

.... Baseline Credit Assessment, Affirmed baa2

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

.... Short Term Counterparty Risk Rating (Local Currency), Affirmed P-2

.... Short Term Deposit Rating (Foreign Currency), Affirmed P-2

.... Short Term Deposit Rating (Local Currency), Affirmed P-2

..Issuer: Banco Internacional del Perú S.A.A.

.... Adjusted Baseline Credit Assessment, Affirmed baa2

.... Baseline Credit Assessment, Affirmed baa2

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

.... Short Term Counterparty Risk Rating (Local Currency), Affirmed P-2

.... Short Term Deposit Rating (Foreign Currency), Affirmed P-2

.... Short Term Deposit Rating (Local Currency), Affirmed P-2

....Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture (Foreign Currency), Affirmed Baa1, Stable

....Senior Unsecured Regular Bond/Debenture (Local Currency), Affirmed Baa1, Stable

....Long Term Deposit Rating (Foreign Currency), Affirmed Baa1, Stable

....Long Term Deposit Rating (Local Currency), Affirmed Baa1, Stable

..Issuer: Banco Internacional del Perú (Panama Branch)

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

..Issuer: Scotiabank Perú S.A.A.

.... Adjusted Baseline Credit Assessment, Affirmed baa1

.... Baseline Credit Assessment, Affirmed baa2

.... Long Term Counterparty Risk Assessment, Affirmed A3(cr)

.... Short Term Counterparty Risk Assessment, Affirmed P-2(cr)

.... Long Term Counterparty Risk Rating (Foreign Currency), Affirmed A3

.... Long Term Counterparty Risk Rating (Local Currency), Affirmed A3

.... Short Term Counterparty Risk Rating (Foreign Currency), Affirmed P-2

.... Short Term Counterparty Risk Rating (Local Currency), Affirmed P-2

.... Short Term Deposit Rating (Foreign Currency), Affirmed P-2

.... Short Term Deposit Rating (Local Currency), Affirmed P-2

.... Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed Baa2

Outlook Actions:

..Issuer: Banco BBVA Perú S.A.

....Outlook, Remains Stable

..Issuer: Banco de Crédito del Perú

....Outlook, Remains Stable

..Issuer: Banco de Crédito del Perú, Panama Branch

....Outlook, Remains Stable

..Issuer: Banco de la Nación

....Outlook, Changed To Stable From Negative

..Issuer: Banco Internacional del Perú S.A.A.

....Outlook, Remains Stable

..Issuer: Banco Internacional del Perú (Panama Branch)

....Outlook, Remains Stable

..Issuer: Scotiabank Perú S.A.A.

....Outlook, Changed To Stable From Negative

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 http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288435.

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.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

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.

Felipe Carvallo
VP - Senior Credit Officer
Financial Institutions Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 1 888 779 5833
Client Service: 1 212 553 1653

Farooq Khan
Vice President - Senior Analyst
Financial Institutions Group
JOURNALISTS: 0 800 891 2518
Client Service: 1 212 553 1653

Ceres Lisboa
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 1 888 779 5833
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

No Related Data.
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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.

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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 JPY125,000 to approximately JPY550,000,000.

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

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