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Rating Action:

Moody's takes rating actions on seven Omani banks

09 Mar 2020

Rating actions follow downgrade of the Omani government rating to Ba2

Limassol, March 09, 2020 -- Moody's Investors Service ("Moody's") has today downgraded the long-term local and foreign currency deposit ratings of five Omani banks: Bank Muscat SAOG (Bank Muscat), Bank Dhofar SAOG (Bank Dhofar), National Bank of Oman SAOG (NBO), Sohar International Bank SAOG (Sohar International) and Oman Arab Bank (SAOC) (OAB). At the same time, Moody's affirmed the long-term local currency deposit ratings and downgraded the long-term foreign currency deposit rating of two banks: HSBC Bank Oman SAOG (HBON) and Bank Nizwa SAOG (Bank Nizwa). Moody's has changed the outlook to stable from negative on the long-term deposit ratings of all seven banks.

At the same time, Moody's has downgraded the Baseline Credit Assessment (BCA) and Adjusted BCA of four Omani banks: Bank Muscat, HBON, NBO and OAB. In addition, Moody's has affirmed the BCAs and Adjusted BCAs of three banks: Bank Dhofar, Sohar International and Bank Nizwa.

These actions, which follow Moody's downgrade of the Government of Oman issuer rating to Ba2 with a stable outlook from Ba1 with a negative outlook, reflect the Omani government's weakening capacity to support the local banks as well as the weakening standalone credit profiles of some banks.

A full list of affected ratings is at the bottom of the press release.

RATINGS RATIONALE

-- DOWNGRADES AND AFFIRMATION OF DEPOSIT RATINGS REFLECT LOWER GOVERNMENT SUPPORT CAPACITY AND WEAKENING STANDALONE CREDIT PROFILES

Today's rating action reflects, to differing degrees, a combination of (i) the Omani government's weakened fiscal capacity to support the country's banks in case of need, as indicated by the downgrade of the sovereign rating, and (ii) the weakening standalone credit profiles of some banks.

The sovereign action reflects Oman's lower fiscal strength, evident in higher government debt and weaker debt affordability metrics than Moody's expected. Debt will continue to increase in the next two years, despite Moody's expectation that the government will begin in the next few months implementing a significant medium-term fiscal adjustment program to slow, and eventually arrest, the increase in the debt burden. Please see "Moody's downgrades Oman's rating to Ba2, changes outlook to stable"; (https://www.moodys.com/research/--PR_419047).

In terms of governance considerations, Moody's does not have any particular governance concern for Omani banks. The conservative regulatory framework in Oman helps support the banks' governance practices.

Details of how these drivers affect the banks ratings are given in the bank specific sections below.

-- STABLE OUTLOOKS REFLECT THE STABLE OULOOK ON THE SOVEREIGN RATING

The change in outlook to stable from negative on the Omani banks' long-term deposit ratings reflects the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity to support the country's banks in case of need.

-- BANK-BY-BANK SUMMARY OF ACTIONS

- Bank Muscat SAOG (Bank Muscat)

Moody's downgraded Bank Muscat's long-term local currency deposit rating to Ba2 from Ba1, and downgraded its BCA and Adjusted BCA to ba2 from ba1. Bank Muscat's long-term local currency deposit rating continues to be aligned with the rating of the Oman sovereign. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook on the bank's long-term deposit ratings to stable from negative.

The downgrade of Bank Muscat's long-term local currency deposit rating reflects (i) the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating, and (ii) the constraint that the sovereign rating, downgraded to Ba2 from Ba1, applies on the bank's standalone profile (BCA). The absence of government support uplift for the bank's local currency deposit rating, despite Moody's assessment of a 'very high' likelihood of government support in case of need, reflects the positioning of the bank's BCA at the same level as the sovereign rating.

The downgrade of the BCA to ba2 from ba1 reflects the constraint from the sovereign rating, which was downgraded to Ba2 from Ba1. The financial profile of Bank Muscat would imply that its BCA should be at ba1, reflecting its solid asset quality, high capital (17.1% tangible common equity/risk-weighted assets at end-2019) as well as its healthy profitability (1.5% net income/tangible assets) underpinned by a dominant domestic franchise (over 36% domestic asset market share). The bank's financial fundamentals also exhibit stable funding driven by its established deposit gathering franchise, along with sound liquidity. Given the bank's high exposure to the Omani operating environment and the Omani sovereign where 96% of its assets are located and 96% of its earnings are generated, Moody's says that the bank's BCA is constrained to ba2, in line with the Oman sovereign rating.

The stable outlook on Bank Muscat's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- HSBC Bank Oman SAOG (HBON)

Moody's affirmed HBON's long-term local currency deposit rating at Ba1, downgraded its Adjusted BCA to ba1 from baa2, and downgraded its BCA to ba2 from ba1. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreing currency deposit ceiling. At the same time, the rating agency has changed the outlook on the bank's long-term deposit ratings to stable from negative.

The affirmation of HBON's long-term local currency deposit rating at Ba1 reflects the bank's new Adjusted BCA of ba1, as well as the unchanged local currency sovereign ceiling. The absence of government support uplift for the bank's deposit rating, despite Moody's assessment of a 'high' likelihood of government support in case of need, reflects the positioning of the bank's Adjusted BCA above the sovereign rating.

The downgrade of the Adjusted BCA to ba1 from baa2 reflects the downgraded BCA to ba2 from ba1, combined with one notch of uplift from affiliate support from HSBC Holdings plc (senior unsecured A2 negative, BCA a2), HBON's ultimate parent. The one-notch of affiliate support uplift reflects HSBC Holdings plc's management control of HBON, combined with the strategic fit and brand name association of HBON with HSBC Holdings plc. The ba1 Adjusted BCA is now at the same level as the bank's Ba1 local currency deposit rating, both positioned one notch above the Ba2 issuer rating of the Oman government.

The downgrade of the BCA to ba2 from ba1 reflects constraint from the sovereign rating, which was downgraded to Ba2 from Ba1. The financial profile of HBON would imply that its BCA should be ba1, reflecting its high capitalisation (15.1% tangible common equity/risk weighted assets at end-2019), sound profitability (1.2% net income/tangible banking assets), low market funding reliance (3.5% market funds/tangible banking assets) and high liquidity (38.2% liquid banking assets/tangible banking assets). Moody's does however expect the bank's asset quality to weaken modestly (1.9% problem loans/gross loans), owing to continued public spending restraint amid low oil prices. Given the bank's high exposure to the Omani operating environment and sovereign, where 88% of its loans were located as of December 2018, Moody's says that the bank's BCA is constrained to ba2, in line with the Oman sovereign rating.

The stable outlook on HBON's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- Bank Dhofar SAOG (Bank Dhofar)

Moody's downgraded Bank Dhofar's long-term local currency deposit rating to Ba2 from Ba1, and affirmed its BCA and Adjusted BCA at ba3. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook on the bank's long-term deposit ratings to stable from negative.

The downgrade of Bank Dhofar's long-term local currency deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating. The downgrade of the bank's long-term foreign currency deposit rating reflects the new relevant foreign currency deposit ceiling following the downgrade in the government's foreign currency issuer rating.

The affirmation of the BCA at ba3 reflects the bank's sound capitalisation (12.0% tangible common equity/risk-weighted assets at end-2019), sound profitability, modest market funding reliance (12.6% market funds/tangible banking assets) and healthy liquidity, reflecting access to large government-related deposits. However, Moody's expects the bank's asset quality to weaken gradually, reflecting its sizeable construction sector exposure (17% of gross loans) and historically rapid growth.

The stable outlook on Bank Dhofar's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- National Bank of Oman SAOG (NBO)

Moody's downgraded NBO's long-term local currency deposit rating to Ba2 from Ba1, and downgraded its BCA and Adjusted BCA to ba3 from ba2. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook on the bank's long-term deposit ratings to stable from negative.

The downgrade of NBO's long-term local currency deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating. The downgrade of the bank's long-term foreign currency deposit rating reflects the new relevant foreign currency deposit ceiling following the downgrade in the government's foreign currency issuer rating.

The downgrade of the BCA to ba3 from ba2 reflects the expected weakening in the bank's asset quality amid a challenging environment in the UAE and Oman. Nonetheless, we expect NBO's reduction in its lending exposure to the construction sector in Oman and to UAE borrowers (two segments that materially contributed to the bank's problem loan formation over recent years) to materially limit the potential for future problem loan formation. The bank's problem loans to gross loans ratio increased to 4.5% at end-2019, from 4.2% at end-2018 and 3.5% at end-2017. NBO reduced its loans to the volatile construction sector to 6% of gross loans as of December 2019 from 9% as of December 2016, and decreased its net loans to UAE borrowers to 2% of net loans as of December 2018 from 8% as of December 2016. The bank's ba3 BCA also reflects its sound capitalisation (12.5% tangible common equity/risk-weighted assets at end-2019) and healthy profitability (1.2% net income to tangible assets ratio). NBO also continues to maintain modest liquid resources and a concentrated funding base.

The stable outlook on NBO's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- Sohar International Bank SAOG (Sohar International)

Moody's downgraded Sohar International's long-term local currency deposit ratings to Ba2 from Ba1, and affirmed its BCA and Adjusted BCA at ba3. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook to stable from negative on the bank's long-term deposit ratings.

The downgrade of Sohar International's long-term local currency deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating. The downgrade of the bank's long-term foreign currency deposit rating reflects the new relevant foreign currency deposit ceiling following the downgrade in the government's foreign currency issuer rating.

The affirmation of the BCA at ba3 reflects the bank's sound liquidity (20.7% liquid banking assets/tangible banking assets) and gradually improving funding profile. Market funds to tangible banking assets remain high, but declined to 22.8% at end-2019 from 24.8% at end-2018 and 26.3% at end-2017. Net loans to deposits declined to 117% at end-2019 from 124% at end-2018. Nonetheless, Moody's expects the bank's asset quality to continue to weaken (4.2% problem loans/gross loans at end-2019, from 2.9% at end-2018), reflecting its sizeable construction exposure (15% of gross loans) and rapid growth at 9.8%. The bank exhibits modest solvency buffers, with profitability at 0.6% net income/tangible banking assets and tangible common equity at 10.7% of risk weighted assets.

The stable outlook on Sohar International's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- Oman Arab Bank (SAOC) (OAB)

Moody's downgraded OAB's long-term local currency deposit ratings to Ba2 from Ba1, and downgraded its BCA and Adjusted BCA to ba3 from ba2. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook to stable from negative on the bank's long-term deposit ratings.

The downgrade of OAB's long-term local currency deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating. The downgrade of the bank's long-term foreign currency deposit rating reflects the new relevant foreign currency deposit ceiling following the downgrade in the government's foreign currency issuer rating.

The downgrade of the BCA to ba3 from ba2 reflects the weakening of the bank's asset quality owing to delinquencies from some large borrowers in the stressed construction sector. The bank's problem loans increased to 3.3% of gross loans at end-2019 from 2.3% at end-2018, and loan loss reserves/problem loans declined to 70% at end-2019 from 108% at end-2018. The ba3 BCA also reflects OAB's sound capitalisation (11.7% tangible common equity/risk-weighted assets), sound profitability, low market funding (2.2% market funds/ tangible banking assets) and modest liquidity (15.3% liquid banking assets/tangible banking assets).

The stable outlook on OAB's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

- Bank Nizwa SAOG (Bank Nizwa)

Moody's affirmed Bank Nizwa's long-term local currency deposit ratings at Ba2, and affirmed its BCA and Adjusted BCA at b1. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba3 from Ba2 in line with the new relevant foreign currency deposit ceiling. At the same time, the rating agency has changed the outlook to stable from negative on the bank's long-term deposit ratings.

The affirmation of Bank Nizwa's long-term local currency deposit ratings reflects the fact that even with a lower government capacity to support the bank, Moody's continued assessment of a very high likelihood of support for Bank Nizwa still leads to two notches of government support uplift for the bank. The downgrade of the bank's long-term foreign currency deposit rating reflects the new relevant foreign currency deposit ceiling following the downgrade in the government's foreign currency issuer rating.

The affirmation of the BCA at b1 reflects the bank's sound capitalisation (13.5% tangible common equity/risk-weighted assets at end September2019), combined with an improving modest profitability (1.0% net income/tangible banking assets) reflecting the bank's developing franchise. These strengths are moderated by rapid growth at 13% during the first nine months of 2019, concentrated funding profile, limited liquid resources (14.9% liquid assets/tangible banking assets) and an evolving risk management framework.

The stable outlook on Bank Nizwa's long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

WHAT COULD CHANGE THE RATINGS -- UP

Upwards pressure on the banks' long-term foreign currency ratings is limited given their positioning at the sovereign ceiling level. Nonetheless, the higher sovereign rating could lead to upwards pressure on the banks' ratings.

WHAT COULD CHANGE THE RATINGS -- DOWN

Downward pressure on Omani banks' ratings could develop through a deterioration in the sovereign's credit profile, or a material deterioration in the banks' solvency and liquidity.

RATING OUTLOOKS

The stable outlook on the Omani banks' long-term deposit ratings mirrors the stable outlook on the sovereign rating, which signals resilience in the Omani government's credit strength as well as in its capacity and willingness to support the country's banks in case of need.

LIST OF AFFECTED RATINGS

Issuer: Bank Muscat SAOG

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba1 from Baa3

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to NP from P-3

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Bank Deposits (Local Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba1(cr) from Baa3(cr)

....Short-term Counterparty Risk Assessment, downgraded to NP(cr) from P-3(cr)

....Baseline Credit Assessment, downgraded to ba2 from ba1

....Adjusted Baseline Credit Assessment, downgraded to ba2 from ba1

....Senior Unsecured Regular Bond/Debenture (Foreign Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Senior Unsecured Medium-Term Note Program (Foreign Currency), downgraded to (P)Ba2 from (P)Ba1

....Subordinate Medium-Term Note Program (Foreign Currency), downgraded to (P)Ba3 from (P)Ba2

..Affirmations:

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: HSBC Bank Oman SAOG

..Downgrades:

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Baseline Credit Assessment, downgraded to ba2 from ba1

....Adjusted Baseline Credit Assessment, downgraded to ba1 from baa2

..Affirmations:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed Baa3

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed P-3

....Long-term Bank Deposits (Local Currency), affirmed Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, affirmed Baa3(cr)

....Short-term Counterparty Risk Assessment, affirmed P-3(cr)

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: Bank Dhofar SAOG

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba2 from Ba1

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Bank Deposits (Local Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba2(cr) from Ba1(cr)

....Senior Unsecured Medium-Term Note Program (Foreign Currency), downgraded to (P)Ba2 from (P)Ba1

..Affirmations:

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed NP

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

....Short-term Counterparty Risk Assessment, affirmed NP(cr)

....Baseline Credit Assessment, affirmed ba3

....Adjusted Baseline Credit Assessment, affirmed ba3

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: National Bank of Oman SAOG

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba2 from Ba1

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Bank Deposits (Local Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba2(cr) from Ba1(cr)

....Baseline Credit Assessment, downgraded to ba3 from ba2

....Adjusted Baseline Credit Assessment, downgraded to ba3 from ba2

....Senior Unsecured Regular Bond/Debenture (Foreign Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Senior Unsecured Medium-Term Note Program (Local and Foreign Currency), downgraded to (P)Ba2 from (P)Ba1

..Affirmations:

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed NP

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

....Short-term Counterparty Risk Assessment, affirmed NP(cr)

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: Sohar International Bank SAOG

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba2 from Ba1

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Bank Deposits (Local Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba2(cr) from Ba1(cr)

..Affirmations:

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed NP

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

....Short-term Counterparty Risk Assessment, affirmed NP(cr)

....Baseline Credit Assessment, affirmed ba3

....Adjusted Baseline Credit Assessment, affirmed ba3

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: Oman Arab Bank (SAOC)

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba2 from Ba1

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Bank Deposits (Local Currency), downgraded to Ba2 from Ba1, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba2(cr) from Ba1(cr)

....Baseline Credit Assessment, downgraded to ba3 from ba2

....Adjusted Baseline Credit Assessment, downgraded to ba3 from ba2

..Affirmations:

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed NP

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

....Short-term Counterparty Risk Assessment, affirmed NP(cr)

..Outlook Action:

....Outlook changed to Stable from Negative

Issuer: Bank Nizwa SAOG

..Downgrades:

....Long-term Counterparty Risk Ratings (Local and Foreign Currency), downgraded to Ba2 from Ba1

....Long-term Bank Deposits (Foreign Currency), downgraded to Ba3 from Ba2, outlook changed to Stable from Negative

....Long-term Counterparty Risk Assessment, downgraded to Ba2(cr) from Ba1(cr)

..Affirmations:

....Short-term Counterparty Risk Ratings (Local and Foreign Currency), affirmed NP

....Long-term Bank Deposits (Local Currency), affirmed Ba2, outlook changed to Stable from Negative

....Short-term Bank Deposits (Local and Foreign Currency), affirmed NP

....Short-term Counterparty Risk Assessment, affirmed NP(cr)

....Baseline Credit Assessment, affirmed b1

....Adjusted Baseline Credit Assessment, affirmed b1

..Outlook Action:

....Outlook changed to Stable from Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The local market analyst for these ratings is Mik Kabeya, +971 (423) 795-90.

REGULATORY DISCLOSURES

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

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.

Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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