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Rating Action:

Moody's takes rating actions on six Italian corporates

23 Oct 2018

Milan, October 23, 2018 -- Moody's Investors Service has today taken rating actions on six non-financial corporates domiciled in Italy: Eni S.p.A. (Eni), Esselunga S.p.A. (Esselunga), Immobiliare Grande Distribuzione SiiQ S.p.A. (IGD), Leonardo S.p.A. (Leonardo), Poste Italiane S.p.A. (Poste), and RAI - Radiotelevisione italiana S.p.A. (Rai).

The rating actions were prompted by the rating agency's downgrade of Italy's government bond rating to Baa3 with a stable outlook from Baa2 under review for downgrade. For further information on the sovereign rating action, please refer to Moody's press release dated 19 October 2018 (https://www.moodys.com/research/Moodys-downgrades-Italys-ratings-to-Baa3-stable-outlook--PR_390302).

Moody's has downgraded Eni's ratings to Baa1 from A3, and Poste's rating to Baa3 from Baa2. The outlook on both has been changed to stable.

At the same time, Moody's has affirmed the Baa2 rating and changed the outlook to stable from negative on Esselunga and has affirmed the Ba1 rating and changed the outlook to stable from positive on Leonardo.

Moody's has confirmed Rai's Baa3 rating and changed the outlook to stable and has affirmed IGD's Baa3 rating, the outlook remains negative.

A full list of affected ratings is provided towards the end of this press release.

LIST OF AFFECTED ISSUERS

- Eni:

Moody's has downgraded to Baa1 from A3 the senior unsecured debt ratings and the debt ratings of its guaranteed subsidiary, Eni Finance International SA. The senior unsecured debenture rating of Eni's wholly owned subsidiary, Eni USA Inc., were downgraded to Baa2 from Baa1. Concurrently, Moody's has affirmed Eni's Prime-2 commercial paper rating. The outlook on all ratings is stable. This rating action concludes the review initiated on 30 May 2018.

- Esselunga:

Moody's has affirmed the Baa2 long-term issuer rating and the Baa2 senior unsecured rating. Moody's has changed the outlook on the ratings to stable from negative.

- IGD:

Moody's has affirmed the Baa3 long-term issuer rating and the Baa3 senior unsecured rating. The outlook on the ratings remains negative.

- Leonardo:

Moody's has affirmed Leonardo's Ba1 corporate family rating, as well as the ba2 Baseline Credit Assessment (BCA), which remains strongly positioned. Moody's has also changed Leonardo's outlook to stable from positive.

- Poste:

Moody's has downgraded to Baa3 from Baa2 the long-term issuer rating, to (P)Baa3 from (P)Baa2 the provisional senior unsecured rating on its EUR2 billion euro medium-term note (EMTN) programme and to Prime-3 from Prime-2 its short-term issuer rating. The outlook on the ratings is stable. The BCA has been also downgraded to baa3 from baa2. This rating action concludes the rating review initiated on May 30, 2018.

- Rai - Radiotelevisione italiana S.p.A.:

Moody's has confirmed the Baa3 issuer rating and Baa3 senior unsecured rating of Rai's EUR350 million notes due in 2020. The outlook on all ratings is stable. This rating action concludes the rating review initiated on May 30, 2018.

Today's rating actions follow the rating action on the Italian government's debt rating and reflect the pressure on the aforementioned issuers as a consequence of their linkages with the sovereign rating.

RATINGS RATIONALE

-- Eni --

The downgrade of Eni's ratings is in line with the rating action on the Italian sovereign rating and reflects Moody's view that despite the favourable prospects for the company and the expectation of continuous strong credit metrics, the lower Italy sovereign rating results in a downgrade of Eni's ratings. The company's Baa1 issuer rating is positioned above the Baa3 rating of the Italian sovereign to reflect Eni's standalone credit strength combined with the global scope of its upstream operations. However, Eni's rating is constrained by Italy's sovereign rating due to the degree of linkage with Italy, through the government's 30.1% equity holding and its ability to submit slates of candidates for the board of directors according to Article 17 of the Eni By-laws, as well as through the domestically focused downstream business.

The Baa3/stable rating for the Italian government severely constrains any upside potential for Eni's rating, and a positive rating action on Eni is unlikely in the absence of a higher rating for Italy. In addition to a higher Italian sovereign rating, a sustained strong financial profile, with RCF/net debt in the mid-30s, would put positive pressure on Eni's rating.

A downgrade of the Italian government rating would likely lead to a downgrade of Eni's rating. A sustained weaker financial profile of Eni, with RCF /net debt declining below 20% would also result in negative rating pressure.

-- Esselunga --

Today's stabilization of the outlook follows the downgrade to Baa3/stable from Baa2/RUR of the Government of Italy on 19 October. The positioning of Esselunga's ratings one notch above the Government of Italy's remains contingent on Esselunga continuing to deliver robust operational performance and further deleveraging. If it appears that sovereign or macroeconomic stresses are starting to weigh more heavily on the company's credit profile, the one-notch differential could be removed in the future. However, in view of the domestic concentration the rating agency would not expect the rating to be positioned more than one notch above Italy, even if performance and metrics remain very strong.

Esselunga's Baa2 rating reflects the company's (1) defensive business profile and low seasonality; (2) well-established position as Italy's fourth-largest grocery retailer; (3) exposure predominantly to some of the wealthiest parts of Italy; (4) strong track record in generating stable, above-average returns for the sector, with a 2017 pro-forma Moody's-adjusted EBIT margin of 5.9%; (5) relatively low level of adjusted debt and conservative financial policy; and (6) Moody's expectation that free cash flow generation (after capital spending and dividends) will remain positive despite the material investment programme.

The rating also reflects the company's (1) lack of international diversification and hence reliance on the economic conditions in Italy, although Moody's notes the company's resilient performance during the financial crisis; (2) modest size and higher geographical concentration relative to most other rated European retailers; (3) competitive retail environment driven by structural changes, which could exert pressure on margins.

Liquidity is strong as a combination of (1) cash and equivalents of EUR626 million; (2) positive free cash flow generation; (3) EUR300 million committed revolving credit facility (fully undrawn at 30 June 2018) maturing in August 2022; and (4) absence of significant debt maturities until 2023 following the EUR1 billion bond issuance completed in October 2017.

The stable outlook reflects Moody's expectation that financial metrics will remain commensurate for the rating category with a Moody's adjusted debt to EBITDA of trending towards 2.3x by 2019; and Moody's adjusted retained cash flow to net debt remaining above 50%.

An upgrade to Baa1 is considered unlikely in light of the current rating of the Government of Italy. However, upward rating pressure would reflect (1) continued improvement in the company's financial profile, resulting in Moody's-adjusted gross debt/EBITDA to trend below 2x and retained cash flow /net debt above 30% on a sustained basis; and (2) simplification of the financial structure in particular with regard to the existence of debt at the Supermarkets level.

Conversely, negative pressure on the rating could materialize if (1) Moody's-adjusted gross debt/EBITDA trending above 2.5x on a sustained basis; and (2) Retained cash flow/net debt below 20% on a sustained basis. A downgrade to the Government of Italy's rating would also exert negative pressure on the rating.

-- Immobiliare Grande Distribuzione SiiQ S.p.A.

The affirmation of IGD's Baa3 rating reflects Moody's view that the rating action on Italy's sovereign rating does not directly affect the company's rating at this stage. However, the downgrade of the rating of the Government of Italy has eliminated the buffer previously existing between the sovereign and IGD's rating, so that any further downgrade or change of the outlook to negative of Italy's sovereign rating would prompt a downgrade of IGD's rating.

However, given Italy's still weak economy, the prospect of rising interest rates for Italian borrowers, Moody's believes that IGD's debt metrics need to further strengthen from current levels in order to provide a sufficient buffer against the risk of rising refinancing costs and potential negative portfolio revaluations. The IGD's outlook remains therefore negative.

Negative pressure on the rating could materialize if any of the following conditions were met: (1) Moody's adjusted Gross Debt/Total Assets failed to reduce to around 45%, (2) its fixed charge coverage dropped below 2.5x, (3) the company failed to improve its liquidity management in order to address the refinancing of its debt maturities a year before due date or (4) the level of unencumbered assets decreases significantly. Moody's could also downgrade IGD's rating if the credit quality of Coop Alleanza 3.0, IGD's main tenant and shareholder, failed to improve.

Although unlikely at this stage, positive rating pressure could develop if all of the following conditions were met: (1) there is a meaningful increase in like-for-like rental growth and occupancy, (2) its Gross Debt/Total Assets was sustained around 40%, (3) its fixed charge coverage further improved above 3.5x, (4) the credit quality of Alleanza 3.0 substantially improved and (5) IGD significantly improved its liquidity management.

-- Leonardo S.p.A. --

The change in outlook to stable from positive follows Moody's downgrade of Italy's issuer rating to Baa3 stable from Baa2. The change in Leonardo's outlook does not reflect a weakening of the company's standalone credit risk. On the contrary, Moody's still expects key credit metrics will continue to strengthen over the next 12-18 months and sees good prospects for an upgrade of the BCA to ba1 from ba2, possibly on the back of full year results in March, provided that Leonardo demonstrates a stronger track record in steadily improving profitability and cash flow.

However, an upgrade of Leonardo's BCA to ba1 would reduce the gap with Italy's rating to just one notch. Moody's expectation of moderate extraordinary support from the sovereign remains unchanged, but at those levels it is not clear whether the moderate support would be sufficient to deliver a full notch of uplift to align Leonardo's rating with Italy's at Baa3. Further upward pressure on Leonardo's CFR above Ba1 would most likely be driven by expectations of a sustainable strengthening in standalone performance.

Leonardo's Ba1 CFR currently incorporates a one notch uplift for implicit support from the Government of Italy, which is applied to Leonardo's ba2 BCA, namely Leonardo's standalone credit risk in the absence of extraordinary support from the sovereign. The one notch uplift represents Moody's assessment of moderate default dependence combined with a moderate expectation of support, reflecting among other factors Italy's 30% shareholding in Leonardo.

Moody's could upgrade Leonardo's BCA to ba1 if: its Moody's adjusted gross leverage sustainably trends towards 3.5x; its operating profit margins trend towards the high-single-digit percent range; and it maintains a strong liquidity profile. Leverage at or below 3.5x (including or excluding dividends received from joint ventures in adjusted EBITDA), would more strongly position Leonardo's BCA at the ba1 level.

Moody's would consider a negative rating action if: Leonardo pursues financial policies that do not prioritize debt reduction when leverage is above 5x; the company's operating margins trend back towards the mid-single-digit percent range; there is a sustained decline in orders and ensuing pressure on revenue profile; and liquidity provisions weaken, including regular utilization of revolving credit facilities. Should Italy's rating face further negative rating action, this could also constrain Leonardo's ratings.

-- Poste Italiane S.p.A. --

Today's action reflects the close correlation between Poste's credit quality and that of the Italian government. In line with our Government-Related Issuers (GRI) methodology, Poste's long-term issuer rating reflects the combination of a baseline credit assessment (BCA) of baa3, the Baa3 domestic-currency rating with a stable outlook of the Italian government, the very high dependence between Poste and the Italian government, and Moody's expectation of moderate support from the government.

The BCA has been also downgraded to baa3 from baa2, as it is constrained by the Italian sovereign rating owing to Poste's direct exposure to the macroeconomic situation in Italy; the fact that the Italian government is the company's largest customer and shareholder; and given Poste's significant exposure to the Italian government as a result of its large portfolio of Italian government bonds.

Poste's operating performance has been slightly improving in the last 18 months and the company's leverage (Moody's-adjusted gross debt /EBITDA) declined to 1.2x as of June 2018 from 1.8x in 2017 on the back of solid cash flow generation. Moody's expects a further improvement in operating results, driven by a reduction in the losses of the postal business as the efficiency measures adopted by management, including a new distribution model, gain traction. Moody's forecasts leverage to remain low, between 1.2x and 1.5x, and Retained Cash Flow/net debt to be between 60% and 80% in the next 18 months. These metrics are very solid for the current Baa3 rating.

Poste's stable outlook is in line with the stable outlook on the Italian government's ratings. Any subsequent change to the Italian sovereign rating or outlook could result in a rating action for Poste.

Upside potential on Poste's rating is currently limited by the sovereign rating. As such, an upgrade of Poste's issuer rating and BCA could follow an upgrade of the Italian government rating. In addition, Poste's financial profile and credit metrics are already strong and supportive of a higher rating. An upgrade could also be driven by a weakening of the current strong ties between Poste and the Italian Government, including a reduction of the company's balance sheet exposure to the Italian sovereign through its large portfolio of Italian government bonds and evidence of weakened influence of the Government on the company's governance and strategy.

Moody's could downgrade Poste's issuer rating and BCA following a downgrade of the sovereign rating. Poste's strong business and financial profile offer significant room under the current rating and BCA. Therefore, a downgrade of Poste's rating and BCA due to a deterioration of its credit metrics is unlikely at this stage.

-- Radiotelevisione Italiana S.p.A. --

Rai's credit quality is highly correlated to that of Italy given that Rai (1) is almost fully owned (99.56%) by the Government of Italy; (2) originates all its revenues within the Italian territory; (3) receives approximately 70% of its revenues from the Government of Italy (which collects the licence fees from citizens through the intermediation of electricity suppliers); and (4) is exposed to the Italian advertising market for 25% its revenues.

In line with Moody's Government-Related Issuers (GRI) methodology, Rai's Baa3 rating reflects the combination of a baseline credit assessment (BCA) of ba1, the Baa3 issuer rating of Italy, the very high dependence between Rai and the Italian sovereign and Moody's expectations of strong support from the sovereign.

Despite the downgrade of Italy's rating, Moody's has confirmed Rai's rating at the Baa3 level to reflect the company's improved performance and more stable regulatory framework, which have translated into an upgrade of its BCA to ba1 from ba2.

Positive momentum has been building for some time with regard to Rai's BCA as the regulatory framework has been agreed with a licence extended to 2027, licence fee ("Canone") collection methods have changed leading to significantly reduced evasion rates and management has begun to deliver on a stable industrial plan, leading to an improvement in credit metrics, with adjusted debt/EBITDA expected to stay around 3.5x-4.0x by year end 2018, down from 5.1x in 2015.

Rai's ba1 BCA continues to reflect (1) the company's strong TV audience share of 36.5% which positions Rai as a leading broadcaster for advertising clients; (2) the company's entrenched position in Italian society as the only public broadcasting entity; (3) the stable nature of a large proportion of Rai's revenue, generated through the collection of an annual licence fee imposed by law (around 70% of 2017 revenue); and (4) low licence fee payment evasion rates since the introduction of payment alongside household electricity bills.

The BCA also reflects (1) the exposure to the Italian advertising market (from which Rai derived 25% of its revenues in 2017) which is subject to macro-economic pressures; (2) the constraints on programming schedule which may restrict Rai's ability to respond promptly to changes in viewership trends; (3) the potential for political interference in the Canone revenue share; and (4) the company's weak free cash flow generation and high adjusted debt/EBITDA - although Moody's notes that this level of high leverage is inherent to public broadcasters.

Given that Rai's Baa3 rating is at the same level as the rating of Italy, and the company generates all its revenues within the Italian territory, upward pressure on Rai's rating is unlikely unless there is an upgrade of Italy's rating.

Downward pressure on Rai's rating could be exerted if there is (1) a downgrade in the sovereign rating; (2) material and sustained erosion in Rai's TV audience market share; (3) licence fee evasion rates increase above 10%; (4) a substantial decline in the company's revenues from advertising as a result of further weakening in the Italian advertising market or a change in the allowed advertising limits under the current service agreement; (5) action by the government that weakens the standalone financial profile of Rai ; or (6) sustained negative free cash-flow and weakening of the company's liquidity position.

LIST OF AFFECTED RATINGS

..Issuer: Eni Finance International SA

Affirmations:

....BACKED Commercial Paper, Affirmed P-2

Downgrades:

....BACKED Senior Unsecured Medium-Term Note Program, Downgraded to (P)Baa1 from (P)A3

....BACKED Senior Unsecured Regular Bond/Debenture, Downgraded to Baa1 from A3

Outlook Actions:

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

..Issuer: Eni Finance USA Inc.

Affirmations:

....BACKED Commercial Paper, Affirmed P-2

Outlook Actions:

....Outlook, No outlook

..Issuer: Eni S.p.A.

Affirmations:

....Commercial Paper, Affirmed P-2

Downgrades:

....LT Issuer Rating, Downgraded to Baa1 from A3

....Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Baa1 from A3

....Senior Unsecured Medium-Term Note Program, Downgraded to (P)Baa1 from (P)A3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Baa1 from A3

Outlook Actions:

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

..Issuer: Eni USA Inc.

Downgrades:

....BACKED Senior Unsecured Regular Bond/Debenture, Downgraded to Baa2 from Baa1

Outlook Actions:

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

..Issuer: Esselunga S.p.A.

Affirmations

.... LT Issuer Rating, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa2

Outlook Actions:

....Outlook, Changed To Stable From Negative

..Issuer: IGD SiiQ S.p.A.

Affirmations:

.... Issuer Rating, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa3

Outlook Actions:

....Outlook, Remains Negative

..Issuer: Leonardo S.p.A.

Affirmations:

.... LT Corporate Family Rating, Affirmed Ba1

.... Probability of Default Rating, Affirmed Ba1-PD

....Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1

....Senior Unsecured Regular Bond/Debenture, Affirmed Ba1

Outlook Actions:

....Outlook, Changed To Stable From Positive

..Issuer: Leonardo US Holding Inc.

Affirmations:

....BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Ba1

Outlook Actions:

....Outlook, Changed To Stable From Positive

..Issuer: Poste Italiane S.p.A.

Downgrades:

.... LT Issuer Rating, Downgraded to Baa3 from Baa2

.... ST Issuer Rating, Downgraded to P-3 from P-2

....Senior Unsecured Medium-Term Note Program, Downgraded to (P)Baa3 from (P)Baa2

Outlook Actions:

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

..Issuer: RAI - Radiotelevisione italiana S.p.A.

Confirmations:

.... LT Issuer Rating, Confirmed at Baa3

....Senior Unsecured Regular Bond/Debenture, Confirmed at Baa3

Outlook Actions:

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

PRINCIPAL METHODOLOGIES

The methodologies used in rating Eni S.p.A, Eni USA Inc., Eni Finance USA Inc. and Eni Finance International SA were Global Integrated Oil & Gas Industry published in October 2016, and Government-Related Issuers published in June 2018. The principal methodology used in rating Esselunga S.p.A. was Retail Industry published in May 2018. The principal methodology used in rating IGD SiiQ S.p.A. was REITs and Other Commercial Real Estate Firms published in September 2018. The methodologies used in rating Leonardo S.p.A. and Leonardo US Holding Inc. were Aerospace and Defense Industry published in March 2018, and Government-Related Issuers published in June 2018. The methodologies used in rating Poste Italiane S.p.A. were Business and Consumer Service Industry published in October 2016, and Government-Related Issuers published in June 2018. The methodologies used in rating RAI - Radiotelevisione italiana S.p.A. were Media Industry published in June 2017, and Government-Related Issuers published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

Eni S.p.A. (Eni) is a leading integrated energy company and is the largest corporation in Italy. In 2017, Eni reported EUR66.9 billion in revenue, EUR8.0 billion in EBIT and EUR115 billion in total assets. The company is listed in Italy and in the US, with a market capitalisation of around €58 billion.

Esselunga S.p.A. (Esselunga) is a leading food retailer in Italy. The company distributes its products through an integrated multi-channel approach. In 2017, Esselunga reported EUR7.8 billion in revenue and EUR648 million in adjusted EBITDA (+8.4% vs 2016). The group's food retail network consists of 156 stores and is located almost entirely across the wealthiest regions of Italy: Lombardy (94 stores), Tuscany (28 stores), Piedmont (15 stores), Emilia Romagna (12 stores), Veneto (two stores), Liguria (one store) and Lazio (two stores).

Immobiliare Grande Distribuzione SiiQ S.p.A. owns a portfolio of 42 shopping centres and retail parks, of which 28 in Italy and 14 in Romania, and 25 hypermarkets and supermarkets in Italy. As of 30 June 2018, the portfolio had a fair value of around EUR2.4 billion.

Headquartered in Rome, Italy, Leonardo is one of Italy's largest industrial groups with principal operations in aerospace and defense and is a recipient of about half of the country's annual equipment defense outlays.

Poste Italiane S.p.A. is the Italian national postal operator. It operates a branch network of around 12,800 post offices and is one of the largest employers in Italy, with approximately 138,000 employees. In addition to mail services, Poste is a significant player in the financial services in Italy through an integrated business division named BancoPosta and insurance services through its wholly-owned subsidiary, Poste Vita S.p.A.

Headquartered in Rome, Rai is the exclusive public broadcasting service provider in Italy, where it operates TV, radio and internet channels. Rai employs around 13,000 employees and maintains a regional presence with offices in 21 regions and autonomous provinces. The company's network coverage reaches 99% of the Italian population. The company owns 64.97% of Rai Way, the owner and operator of the leading TV and radio broadcast infrastructure in Italy, which was listed on the Milan Stock Exchange in 2014. Rai is owned by the government through the Ministry of Economy and Finance, which directly holds 99.56% of the company, and the Society of Authors and Publishers, which directly owns the remaining 0.44%. In 2017, Rai reported revenues of EUR2.6 billion and EBITDA of EUR607 million.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt 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.

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.

The person who approved Eni S.p.A., Eni USA Inc., Eni Finance USA Inc. and Eni Finance International SA credit ratings is Anke N Richter, Associate Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454. The person who approved Esselunga S.p.A. credit ratings is Marina Albo Lasagabaster, Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454.The person who approved IGD SiiQ S.p.A. credit ratings is Mario Santangelo, Associate Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454. The person who approved Leonardo S.p.A. and Leonardo US Holding Inc. credit ratings is Matthias Hellstern, Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454. The person who approved Poste Italiene S.p.A. credit ratings is Yasmina Serghini, Associate Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454. The person who approved RAI - Radiotelevisione italiana S.p.A. credit ratings is Ivan Palacios, Associate Managing Director, Corporate Finance Group, Journalists 44 20 7772 5456, Client Service 44 20 7772 5454.

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

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.

Lorenzo Re
Vice President - Senior Analyst
Corporate Finance Group
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Yasmina Serghini
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Sven Reinke
Senior Vice President
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Ernesto Bisagno
VP - Senior Credit Officer
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Roberto Pozzi
Senior Vice President
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Colin Vittery
VP - Sr Credit Officer
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Jeanine Arnold
VP - Senior Credit Officer
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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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 rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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