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Rating Action:

Moody's takes rating actions on 13 Chinese securities companies

 The document has been translated in other languages

08 Mar 2021

Hong Kong, March 08, 2021 -- Moody's Investors Service has taken rating actions on 13 Chinese securities companies.

Specifically, Moody's has upgraded the long-term issuer rating of Huatai Securities Co., Ltd. to Baa1 from Baa2, and raised its standalone assessment to Baa3 from Ba1. The outlook is stable.

In addition, Moody's has upgraded the long-term issuer rating and foreign currency senior unsecured debt rating of Orient Securities Company Limited to Baa2 from Baa3, and raised its standalone assessment to Ba1 from Ba2. The outlook is stable.

Moody's has also affirmed the ratings with a stable outlook of the following companies and raised their standalone assessment by one notch:

- Affirmed the Baa1 long-term issuer rating of CITIC Securities Company Limited and raised its standalone assessment to Baa3 from Ba1. At the same time, Moody's has assigned a stable entity-level outlook to CITIC Securities Finance MTN Co., Ltd.

- Affirmed the Baa1 long-term issuer rating of China International Capital Corporation Limited (CICC) and raised its standalone assessment to Baa3 from Ba1.

- Affirmed the Baa1 long-term issuer rating and foreign currency senior unsecured debt rating of Guotai Junan Securities Co., Ltd. (GTJA Securities) and raised its standalone assessment to Baa3 from Ba1.

- Affirmed the Baa1 long-term issuer rating of CSC Financial Co., Ltd. (China Securities) and raised its standalone assessment to Baa3 from Ba1.

At the same time, Moody's has affirmed the ratings with a stable outlook of the following companies and maintained their current standalone assessment:

- Affirmed the Baa1 long-term issuer rating and foreign currency senior unsecured debt rating of China Merchants Securities Co., Ltd. and maintained its standalone assessment of Ba1.

- Affirmed the Baa2 long-term issuer rating of Shenwan Hongyuan Securities Co Ltd. (SWHY Securities) and maintained its standalone assessment of Ba1.

- Affirmed the Baa2 long-term issuer rating of Dongxing Securities Co., Ltd. and maintained its standalone assessment of Ba2.

- Affirmed the Baa3 long-term issuer rating of Zhongtai Securities Co., Ltd. (Zhongtai Securities) and maintained its standalone assessment of Ba2.

- Affirmed the Baa3 long-term issuer rating of Everbright Securities Company Limited and maintained its standalone assessment of Ba3.

Moody's has also affirmed the ratings with a stable outlook of the following Hong Kong SAR subsidiaries of Chinese securities companies:

- Affirmed the Baa1 long-term issuer rating of China International Capital Corporation (Hong Kong) Limited (CICC HK) and raised its standalone assessment to Baa3 from Ba1.

- Affirmed the Baa2 long-term issuer rating of Guotai Junan International Holdings Limited (GTJA International) and maintained its standalone assessment of Ba1.

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL441220 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.

The rating actions consider these securities companies' well-established franchises, maintenance of good financial metrics in the past few years, and the material improvement in the operating environment of Chinese securities companies.

RATINGS RATIONALE

Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL441220 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:

Local Market Analyst

The rating actions reflect (1) the improvement of the operating environment for Chinese securities companies and (2) for certain companies their consistent and resilient financial performance and credit profile, including good profitability, abundant liquidity and funding, and relatively low leverage compared with global peers.

Improvement in the operating environment for Chinese securities companies

Moody's has raised the operating environment score for Chinese securities companies to Ba1 from Ba2, mainly due to the increased maturity of China's capital markets. This is indicated by enhanced breadth and depth of the country's capital markets, greater participation from institutional and international investors, and more sophisticated regulatory rules.

China's capital markets have grown persistently in recent years to become the world's second largest by market capitalization of outstanding stocks and bonds. The depth of China's capital markets, as measured by market capitalization of listed companies and outstanding balance of bonds divided by GDP, rose to 191% at the end of 2020 from 148% at the end of 2015, narrowing the gap with that of more mature markets.

At the same time, liquidity remains abundant along with a larger market size, as reflected in high market turnover. Moody's estimates that the velocity of the A-share market, as measured by trading volume divided by average market cap, was 298% in 2020, a level that was significantly higher than that of major stock markets in the world.

Another sign of the increasing maturity of China's capital markets is the rising participation of institutional investors, which could help lower market volatility and improve the corporate governance of listed companies. In addition, elevated fund inflow from foreign investors provides additional market liquidity and raises the need for domestic institutions to harmonize their practices with global standards.

Furthermore, the China Securities Regulatory Commission (CSRC) and stock exchanges have implemented new regulations since 2015, such as (1) tightened rules on margin financing and stock-pledged lending, (2) reducing stock suspensions, and (3) implementation of the registration-based IPO system. These measures help to (1) limit investors' leverage, (2) lower market volatility, (3) increase market accessibility, and (4) enhance the securities industry's ability to withstand market shocks.

Individual companies' ratings rationale

Huatai Securities

The upgrade of Huatai Securities' long-term issuer rating and standalone assessment reflects its (1) expanded franchise, (2) strong financial performance, and (3) improved operating environment.

Over the past few years, Huatai Securities has strengthened its leading position in the brokerage business and made steady progress in its investment banking and asset management businesses.

Moody's therefore forecasts the company to report a strong return on average assets (ROAA), supported by its robust fee income and effective cost controls. Moody's also expects that the company will maintains abundant liquidity and funding on its balance sheet.

In addition, Huatai Securities has significantly reduced the exposure of its stock-pledged lending business. The consistent growth and improved leverage of AssetMark Financial Holdings, Inc., an entity that Huatai Securities acquired in 2016, also mitigate risks regarding Huatai Securities' overseas expansion.

Moreover, Huatai Securities' ratings continue to benefit from a two-notch uplift based on Moody's assumption of a high level of support from the Government of China (A1 stable) in times of stress, considering the company's (1) ownership structure, (2) strategic importance to the Jiangsu provincial government, and (3) leading position in the securities sector nationwide.

Orient Securities

The upgrade of Orient Securities' long-term issuer rating and standalone assessment reflects the company's (1) more diversified revenue streams, (2) strong liquidity and funding profile, and (3) improved operating environment.

Over the past few years, Orient Securities has gradually diversified its business into wealth management and asset management, although its reliance on proprietary trading remains high. The company has built a reputable asset management franchise with most of its assets under management in active strategies, which contributes higher revenue from related fees compared with peers and allows it to efficiently adapt to new asset management regulations.

In addition, Moody's expects that the company will continue to maintain a strong liquidity and funding profile; the latter is one of the strongest among domestic peers. Orient Securities has also reduced the exposure of its stock-pledged lending business and increased related provisions.

At the same time, the ratings continue to benefit from a two-notch uplift based on Moody's assumption of a high level of support from its parent Shenergy (Group) Co. Ltd. (A1 negative) and the Government of China in times of stress, considering Orient Securities' (1) strategic importance to Shenergy Group, (2) combined ownership by state-owned enterprises, and (3) its position as one of the major securities firms in China.

CITIC Securities, CICC, GTJA Securities and China Securities

The affirmation of these securities companies' issuer ratings and the upgrade of their standalone assessments consider their continued strong franchises and good financial metrics, as well as the improved operating environment. At the same time, Moody's has narrowed the government-support based rating uplift to two notches from three notches, because their stronger standalone credit profiles reduce the necessity for extraordinary government support.

CITIC Securities' standalone assessment reflects the company's continued strong franchise as the leader of securities industry in China despite intense competition. In addition, the company has lower earnings volatility than most of its domestic peers due to its diversified revenue structure and prudent risk appetite. Its leverage ratio remains low compared with that its global peers despite having increased in recent years.

CICC's standalone assessment reflects its (1) strong investment banking and wealth management franchises in onshore and offshore markets, (2) abundant liquidity and diversified funding, and (3) low level of proprietary equity investments and stock-pledged lending exposures. These credit strengths mitigate the risks arising from the rapid increase in CICC's total assets and fixed-income securities investments.

GTJA Securities' standalone assessment reflects the company's continued strong brokerage franchise despite intense competition, and position as one of the leading firms in investment banking and asset management businesses in China. In addition, the company has lower earnings volatility than most of its domestic peers due to its diversified revenue structure and prudent risk appetite. Its leverage ratio of 5.2x at the end of June 2020, as measured by total assets to equity attributable to holders of ordinary shares, remained low compared with that of its global peers despite having increased in recent years.

China Securities' standalone assessment reflects the company's strong investment banking franchise in China despite intense competition. In addition, the company has a good liquidity position with prudent risk management. Its profitability has also benefited from the development of China's capital markets in recent years.

China Merchants Securities, SWHY Securities, Dongxing Securities, Zhongtai Securities and Everbright Securities

The affirmation of these securities companies' issuer ratings and standalone assessments takes into account their continued stable financial performance and the improved operating environment. In addition, Moody's assesses that their standalone assessments are well positioned at the current level considering their franchises and financial profiles including funding and liquidity, profitability, risk appetite and leverage.

The Baa1 long-term issuer rating of China Merchants Securities incorporates its standalone assessment of Ba1; a one-notch uplift based on Moody's assumption of a very high level of support from, and a high level of dependence on, its parent China Merchants Group Limited (CMG); and a two-notch uplift based on Moody's assumption of a high level of support from the Government of China through its parent, in times of need, reflecting (1) the strategic importance of CMG to China's economy, (2) the importance of China Merchants Securities to CMG and (3) China Merchants Securities' position as one of the major securities companies in China.

China Merchants Securities' standalone assessment reflects its (1) long history in China's securities industry, (2) ample liquidity, (3) good profitability, and (4) low leverage compared with that of its global peers. Offsetting these credit strengths are the risks arising from the rapid increase in the company's fixed-income investments.

SWHY Securities' Baa2 long-term issuer rating incorporates its standalone assessment of Ba1 and a two-notch uplift, based on Moody's assumption of a high level of support from the Chinese government, in times of need, reflecting the government's ownership in the company and SWHY Securities' position as one of the major securities companies in China.

The Ba1 standalone assessment reflects SWHY Securities' (1) strong brokerage franchise in China's securities industry, (2) decent liquidity and funding position, (3) stable profitability, and (4) low leverage when compared with global peers. Offsetting these credit strengths are the risks arising from the rapid increase in its fixed-income securities investments and the high credit risk in its stock-pledged lending business.

Dongxing Securities' Baa2 long-term issuer rating incorporates (1) the company's standalone assessment of Ba2, (2) a one-notch uplift based on Moody's assumption of high dependence on, and a very high level of support from its parent China Orient Asset Management Co. Ltd (Orient AMC, A3 stable), and (3) a two-notch uplift based on Moody's assumption of a high level of support from the Government of China via its parent, in times of need, reflecting the government's ownership in its parent, its parent's systemic importance and Dongxing Securities' importance to the parent's business strategy.

The Ba2 standalone assessment takes into account Dongxing Securities' good funding and liquidity position and low leverage when compared with other globally rated securities firms. Offsetting these strengths are the liquidity and credit risks associated with its bond investment and stock-pledged lending businesses, as well as the company's limited franchise compared with that of other securities firms in China. The links with its parent's distressed asset management business would increase the company's operational challenges and asset quality risk.

Zhongtai Securities' Baa3 long-term issuer rating incorporates its standalone assessment of Ba2 and a two-notch uplift, based on Moody's assumption of a high level of support from the Government of China, in times of need, reflecting the company's ownership structure and importance to Shandong province.

The Ba2 standalone assessment reflects Zhongtai Securities' (1) strong franchise in the Shandong province with a high brokerage market share and extensive network, (2) low leverage when compared with global peers, and (3) good funding access. Offsetting these credit strengths are its (1) declining brokerage commission rates due to intense competition, (2) high risk appetite when compared with leading Chinese securities companies, and (3) increasing proprietary securities investments.

Everbright Securities' Baa3 long-term issuer rating incorporates (1) the company's standalone assessment of Ba3, (2) a one-notch uplift based on Moody's assumption of a very high level of affiliate support from China Everbright Bank Company Limited (Baa2 stable, ba2), and (3) a two-notch uplift based on Moody's assumption of a high level of support from the Government of China, in times of need, reflecting Everbright Securities' position as one of the major securities companies in China and the systemic importance of its parent, China Everbright Group.

The Ba3 standalone assessment reflects Everbright Securities' (1) likely improvement in its profitability due to robust market conditions and the company's recovery from the impact of a private equity investment, and (2) high earnings volatility and risks related to its asset expansion and sizable bond investment, despite its solid liquidity and capital position.

Everbright Securities recorded total estimated liabilities of around RMB4.6 billion from 2018 to 2020 because of its participation in a private equity investment, which materially lowered its profitability and increased its earnings volatility. Although Everbright Securities improved its internal controls and corporate governance after the incident, it will take some time for it to establish a track record that it maintains good risk management and governance.

CICC HK and GTJA International

Moody's regards CICC HK as a highly integrated and harmonized entity of its parent. As a result, Moody's aligns its issuer rating and standalone assessment with those of its parent. As the standalone assessment of CICC is raised to Baa3 from Ba1, CICC HK's standalone assessment has also been raised to Baa3 from Ba1.

As the primary overseas investment holding platform under CICC, CICC HK is closely aligned with its parent company in providing clients with one-stop investment banking services in domestic and overseas markets. It is vertically managed by CICC, and its operations are highly integrated with that of CICC.

GTJA International's Baa2 long-term issuer rating reflects (1) its standalone assessment of Ba1, (2) a one-notch uplift based on Moody's assumption of a very high level of support from its parent GTJA Securities, and (3) a one-notch uplift based on Moody's assumption of a high level of support from the Government of China through its parent, in times of need, reflecting GTJA International's position as the core international business operation of GTJA Securities.

GTJA International's standalone assessment of Ba1 reflects its (1) leading position in the niche market of helping individuals from the mainland trade offshore securities business, (2) relatively good and stable profitability, and (3) long track record of operating in Hong Kong. These credit strengths are constrained by its rapid expansion in structured products and securities investments, and its reliance on short-term funding.

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

CITIC Securities, CICC, GTJA Securities, China Securities and Huatai Securities

The ratings of CITIC Securities, CICC, GTJA Securities, China Securities and Huatai Securities are unlikely to be upgraded because Moody's assesses that a further improvement in their standalone credit profiles would reduce the necessity for extraordinary government support and therefore narrow government support uplift.

Their standalone assessments could be upgraded if the entities (1) improve their funding and liquidity by reducing investments in illiquid securities, (2) ensure smooth operations and effective risk controls, (3) maintain good profitability, despite intense competition and market fluctuations, and (4) reduce the volatility of their pretax earnings.

Their ratings could be downgraded if Moody's assesses that the government's willingness and ability to support the entities have weakened.

Their ratings could also be downgraded if the entities (1) face a significant deterioration in profitability, (2) record a significant weakening in their financial positions, in particular because of a substantial increase in leverage or a deterioration in liquidity and funding, or (3) face regulatory sanctions or risk management missteps that impair their franchises and management stability.

China Merchants Securities

China Merchants Securities' ratings are unlikely to be upgraded because Moody's assesses that a further improvement in its standalone credit profile will reduce the likelihood of affiliate support.

China Merchants Securities' standalone assessment could be upgraded if the company (1) strengthens its franchise, (2) improves its funding and liquidity ratios, (3) maintains its profitability despite intense competition and market fluctuations, and (4) reduces the size of its proprietary investments.

China Merchants Securities' ratings could be downgraded if Moody's assesses the willingness and ability of its parent and the Chinese government to support the company have weakened.

China Merchants Securities' ratings could also be downgraded if (1) the company's profitability deteriorates substantially, (2) its financial position weakens significantly, for example, because of a substantial increase in leverage or a deterioration in liquidity, or (3) it faces regulatory sanctions or risk management missteps that impair the stability of its franchise and management.

Orient Securities

Orient Securities' ratings and standalone assessment could be upgraded if the company (1) strengthens its franchise, (2) further diversifies its business mix away from its proprietary trading business, (3) stabilizes its pretax earnings volatility, (4) maintains its strong liquidity profile and (5) keeps its leverage ratio below 6x.

Orient Securities' rating could be downgraded if Moody's assesses that the willingness and ability of the Government of China or its parent to support the company have weakened.

Orient Securities' rating could also be downgraded if the company (1) faces a significant deterioration in its profitability, (2) experiences a significant weakening in its financial profile, for example, because of a substantial increase in its leverage to above 6x or a deterioration in liquidity and funding, or (3) faces regulatory sanctions or risk management missteps that impair its franchise and management stability.

SWHY Securities

SWHY Securities' ratings and standalone assessment could be upgraded if the company (1) strengthens its franchise, (2) further improves its funding and liquidity ratios, and (3) maintains its profitability, despite intense competition and market fluctuations.

SWHY Securities' ratings could be downgraded if Moody's assesses the willingness and ability of the Chinese government to support the company have weakened.

SWHY Securities' ratings could also be downgraded if the company (1) records a significant deterioration in its profitability, (2) experiences a significant weakening in its financial position, for example, because of a substantial increase in leverage or a deterioration in its liquidity, or (3) faces regulatory sanctions or risk management missteps that impair the stability of its franchise and management.

Dongxing Securities

Dongxing Securities' ratings could be upgraded if parent Orient AMC's rating is upgraded or if there is more explicit support commitment from Orient AMC or the Chinese government.

Dongxing Securities' standalone assessment could be upgraded if the company (1) maintains its good funding and liquidity, (2) maintains its profitability despite intense competition and market fluctuations, (3) reduces the size of its proprietary investment business or high risk assets, and (4) ensures smooth operations and effective risk controls as it increases its exposure to its parent's distressed asset management business.

Dongxing Securities' ratings could be downgraded if Moody's assesses that the government and its parent's willingness and ability to support the company have weakened or its ownership by Orient AMC has been significantly reduced.

Dongxing Securities' ratings could also be downgraded if the company (1) records a considerable deterioration in its profitability, (2) experiences a significant weakening in its financial position because of a substantial increase in its leverage or a deterioration in its liquidity and funding, (3) materially increases its risk appetite and records a substantial deterioration in asset quality, or (4) faces regulatory sanctions or has risk management missteps that impair its operations and management stability.

Zhongtai Securities

Zhongtai Securities' ratings could be upgraded if the company (1) further enhances its brokerage, investment banking and asset management franchises, (2) lowers its risk appetite by reducing its exposure to risky proprietary securities investments and stock-pledged lending, (3) improves its funding and liquidity ratios, (4) maintains its profitability, despite intense competition and market fluctuations, and (5) strengthens its risk control capability and improves its asset quality.

Zhongtai Securities' ratings could be downgraded if Moody's assesses that the government's willingness and ability to support the firm have weakened.

Zhongtai Securities' ratings could also be downgraded if the company (1) records a material deterioration in profitability, (2) experiences a material weakening in its financial position, in particular because of a substantial increase in leverage or a deterioration in its liquidity and funding profile, or (3) faces regulatory sanctions or risk management missteps that impair its operations and management stability.

Everbright Securities

Everbright Securities' ratings could be upgraded if the company (1) improves its track record of risk management, (2) controls the risks associated with business growth without any significant impact on its overall financial profile, and (3) strengthens its market positions.

Everbright Securities' ratings could be downgraded if Moody's assesses that the willingness and ability of the government and China Everbright Group and its affiliates to support the company have weakened.

The company's ratings could also be downgraded if it (1) encounters further significant risk management issues, (2) faces regulatory sanctions or risk management missteps that impair its franchise and management stability, or (3) experiences a significant weakening in its financial position, for example, because of a substantial increase in leverage or a deterioration in its liquidity.

CICC HK

As a highly integrated and harmonized entity, CICC HK's rating could be upgraded if its parent company's rating is upgraded.

CICC HK's rating could be downgraded if Moody's assesses that CICC HK is becoming more independent from CICC, or the willingness and ability of its parent company or the Government of China to support the firm have weakened.

GTJA International

GTJA International's ratings and standalone assessment could also be upgraded if the firm (1) improves its funding and liquidity ratios, (2) maintains good profitability, despite intense competition and market fluctuations, and (3) reduces its risk appetite and leverage by slowing asset growth.

GTJA International's ratings could be downgraded if the willingness and ability of its parent company or the Chinese government to support the firm have weakened.

The firm's ratings could also be downgraded if (1) its financial position weakens significantly, for example, because of a substantial increase in leverage or a deterioration in its liquidity, (2) its profitability weakens significantly, or (3) regulatory sanctions or risk management missteps impair its franchise and management stability.

The principal methodology used in these ratings was Securities Industry Market Makers Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1187332. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

Huatai Securities Co., Ltd. is headquartered in Nanjing with consolidated assets of RMB692 billion as of the end of September 2020.

Orient Securities Company Limited is headquartered in Shanghai with consolidated assets of RMB294 billion as of the end of September 2020.

CITIC Securities Company Limited is headquartered in Beijing with consolidated assets of RMB1,044 billion as of the end of September 2020.

China International Capital Corporation Limited is headquartered in Beijing with consolidated total assets of RMB485 billion as of the end of September 2020.

Guotai Junan Securities Co., Ltd. is headquartered in Shanghai with consolidated assets of RMB693 billion as of the end of September 2020.

CSC Financial Co., Ltd. is headquartered in Beijing with consolidated assets of RMB354 billion as of the end of September 2020.

China Merchants Securities Co., Ltd. is headquartered in Shenzhen with consolidated assets of RMB479 billion as of the end of September 2020.

Shenwan Hongyuan Securities Co Ltd. is headquartered in Shanghai with consolidated assets of RMB405 billion as of the end of June 2020.

Dongxing Securities Co., Ltd is headquartered in Beijing with consolidated assets of RMB87 billion as of the end of September 2020.

Everbright Securities Company Limited is headquartered in Shanghai with consolidated assets of RMB229 billion as of the end of September 2020.

Zhongtai Securities Co., Ltd is headquartered in Jinan with consolidated total assets of RMB164 billion as of the end of September 2020.

China International Capital Corporation (Hong Kong) Limited reported HKD145 billion of total assets, excluding segregated cash, as of the end of June 2020, which accounted for 35% of CICC's adjusted total assets, excluding segregated cash from clients.

Guotai Junan International Holdings Limited is headquartered in Hong Kong with consolidated assets of HKD125 billion as of the end of June 2020.

REGULATORY DISCLOSURES

The List of Affected Credit Ratings announced here are all solicited credit ratings. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL441220 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:

• Rating Solicitation

• Issuer Participation

• Participation: Access to Management

• Participation: Access to Internal Documents

• Disclosure to Rated Entity

• Endorsement

• Lead Analyst

• Releasing Office

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

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.

Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entities are participating and the rated entities or their agent(s) generally provide Moody's with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody's Policy for Designating Non-Participating Rated Entities.

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_1243406.

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.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

David Yin
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Sophia Lee, CFA
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

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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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