Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Está por salir del sitio local de México y comenzará a navegar en el sitio global. ¿Desea continuar?
No mostrar este mensaje nuevamente
Si
No
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE”, you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s information that becomes accessible to you (the “Information”). References herein to “Moody’s” include Moody’s Corporation. and each of its subsidiaries and affiliates..

 

Terms of One-Time Website Use

 

1.             Unless you have entered into an express written contract with www.moodys.com to the contrary and/or agreed to the Terms of Use at www.moodys.com or ratings.moodys.com, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.                   

 

2.             CREDIT RATINGS AND MOODY’S MATERIALS FOUND ON WWW.MOODYS.COM OR SITES OTHER THAN RATINGS.MOODYS.COM MAY NOT BE DISPLAYED IN REAL TIME. FOR REAL-TIME DISPLAYS OF CREDIT RATINGS AND OTHER INFORMATION REQUIRED TO BE DISCLOSED BY MIS PURSUANT TO APPLICABLE LAW OR REGULATION, PLEASE USE RATINGS.MOODYS.COM.           

 

3.             You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities. Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision. No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.

 

4.             To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.     

 

5.             You agree to read and be bound by the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.​​​

 

6.             You agree that any disputes relating to this agreement or your use of the Information, whether in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's upgrades Krasnodar Krai and Krasnodar City, outlooks stable; affirms Samara Oblast, Nizhniy Novgorod Oblast, outlooks positive

11 Dec 2020

London, 11 December 2020 -- Moody's Investors Service ("Moody's") has today upgraded the long-term issuer ratings of Krasnodar, Krai to Ba2 from Ba3 and Krasnodar, City to Ba3 from B1. The outlooks have been changed to stable from positive.

Concurrently, the long-term issuer and senior unsecured ratings of Samara, Oblast (Ba2) and long-term issuer rating of Nizhniy Novgorod, Oblast (Ba3) were affirmed. The outlooks remain positive.

The rating upgrade of Krasnodar Krai reflects Moody's expectation that the Krai's sound management of its finances will maintain modest debt levels and adequate operating performance, even through periods of revenue challenges like currently. Similarly, Moody's expects Krasnodar City to maintain a modest debt burden, in part supported by stable transfers from the Krai.

The positive outlooks for Samara Oblast and Nizhniy Novgorod Oblast, at their respective rating levels, indicate Moody's assessment that the risks on the credit profiles of the two regional governments remain on the upside, if improving fiscal and debt trends resume once the economic and fiscal impact of the coronavirus pandemic recedes.

For all four regional and local governments, robust governance supports budgetary performance and low to moderate debt burdens.

The full list of affected issuers and credit ratings can be found at the end of this press release.

RATINGS RATIONALE

-- KRASNODAR, KRAI OF

The rating upgrade reflects Moody's expectations that Krasnodar Krai's effective budgetary policy will maintain debt at low to moderate levels. In 2020-2021, net direct and indirect debt (NDID) to operating revenues will remain around 37-40%, before declining again thereafter. This will be supported by a return to strong operating performance (GOB to operating revenues) following some deterioration in 2020 as a result of coronavirus induced crisis, in turn underpinned by a dynamic and diversified economy supporting revenue.

Krasnodar Krai has built a track record of prudent budget management in recent years, having decreased its NDID to operating revenues ratio to 35% in 2019 from more than 75% before 2017.

Moreover, the debt profile is favourable with over 60% of direct debt consisting of long-term, low cost, federal government budget loans at end-2019. As a result, refinancing risks are low: annual debt repayments do not exceed 5% of operating revenues. The low interest rate environment and high share of budget loans will continue to keep interest service costs very low, around 1% of operating revenues.

Krasnodar Krai's Baseline Credit Assessment was upgraded to ba2 from ba3. The final rating of Ba2 incorporates a low likelihood of support from the Government of Russia (Baa3 stable).

-- KRASNODAR, CITY OF

The rating upgrade reflects both higher credit strength of the city's support provider, Krasnodar Krai, and Moody's expectations that the city's own budgetary performance will remain strong. Moody's expects its NDID to operating revenues ratio to stay below 35% this year and next, before declining in the medium term.

Krasnodar Krai provides significant transfers, in a range of 44-53% of the city's total revenues during the last three years; and maintains favourable tax entitlements. Together, these will contribute to stable operating surpluses, around 2-2.5% of revenue, once the pandemic-related revenue shortfall passes.

Like the Krai, Krasnodar City has a track record of implementing financial management that leads to a low and, before the pandemic, falling debt burden. NDID to operating revenues has been on declining trend since 2016 and reduced to 29% in 2019 from 34% in 2018 and a recent peak at 40% in 2016.

The debt profile benefits from budget loans from Krasnodar Krai which lengthen the maturity of debt. The low interest rate environment will result in small interest service costs of around 1% of operating revenues.

Krasnodar City's Baseline Credit Assessment was upgraded to b1 from b2. The final rating of Ba3 incorporates a moderate likelihood of support from Krasnodar Krai.

-- SAMARA, OBLAST OF

The positive outlook on Samara Oblast's rating reflects Moody's assessment that the risks to the Oblast's credit profile are skewed to the upside. If the region quickly restores its operating performance to historic robust levels, the debt burden will resume its declining trend, potentially leading to credit metrics consistent with a higher rating.

The affirmation of the Ba2 ratings takes into account the region's prudent budgetary management against potential pressure on the financials from the coronavirus induced shock. As a result, the region will be able to preserve the credit metrics consistent with the current rating during the crisis.

During the few last years, the region has improved its policy predictability. Its budgetary and debt management has enabled it to reduce its NDID to operating revenues ratio to 30% in 2019 from 34% in 2018 and 46% in 2017. Its operating performance has been sound with a GOB to operating revenues ratio fluctuating in a range of 14-19% in 2017-2019. The region has also improved its debt structure, increasing the share of longer-term debt instruments in total direct debt.

Samara's Baseline Credit Assessment was also affirmed at ba2. The final rating of Ba2 incorporates a low likelihood of support from the Government of Russia.

-- NIZHNIY NOVGOROD, OBLAST

The positive outlook on Nizhniy Novgorod Oblast's rating reflects upside pressure on the region's credit metrics. Once the pandemic recedes, the operating performance may strengthen again, the debt burden resume its declining trend. Diminishing refinancing risks in combination with renewed improvements in debt and fiscal metrics, from a lengthening in debt maturity, would support the region's credit profile and potentially be consistent with a higher rating.

The affirmation of the Ba3 rating takes into account the region's ability to preserve its credit metrics despite currently challenging operating environment.

The region has shown adequate operating performance and balanced budgets during the last several years. It has reduced its NDID to operating revenues ratio to 44% in 2019 from 49% in 2018 and 56% in 2017.

Nizhniy Novgorod's Baseline Credit Assessment was also affirmed at ba3. The final rating of Ba3 incorporates a low likelihood of support from the Government of Russia.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

For the most part environmental problems are not significant for the credit profile of Russian Regional and Local Governments (RLGs). Most of the expenditure for pollution and environmental safety are covered by the Federal Government or the companies causing negative externalities. Although environmental problems including air, water and land pollution are discussed and accounted in the policy of the regional and local authorities, environmental expenditures comprise less than 5% of the budget expenditure. For Nizhniy Novgorod Oblast, Samara Oblast, Krasnodar Krai and Krasnodar City environmental risks are not material.

For Nizhniy Novgorod Oblast and Samara Oblast social risks are not material. Income inequality, migration and urbanisation and aging demographic trends are present in Russian regions. However, Nizhniy Novgorod and Samara Oblasts are sheltered from significant negative impact of the social risks. These developing regions of central part of Russia are less divergent from average salary and demographic trends.

For Krasnodar Krai social risks are material. Contrary to an average Russian region, Krasnodar Krai experiences a steady increase in population due to internal migration. Dynamic economy and mild climate attract people seeking work or better living conditions. While it is beneficial for the long term growth of the local economy, in the short term influx of working and non-working population puts additional strain on infrastructure investments which pressure budgetary flexibility. As of now local budget is well prepared for accommodating new citizens and easily covers these additional expenditures by the growth of own revenues and transfers from the central government but the pressure could intensify.

For Krasnodar City social risks are material. Like the region, the City attracts many migrants, as the largest economic hub of the Krai. The social agenda is of the most importance to the local authorities, necessitating constant investments in new infrastructure, education and healthcare. Yet serious risks are mitigated by still manageable population increase and attention from the regional authorities to local infrastructure problems.

For all regions and municipalities in Russia governance factor is material for the ratings and qualitative assessments are captured in the scorecard. In case of these four RLGs prudent management policies and debt reduction policy allowed for a decrease in credit risks in recent years. Conservative budget planning and long-term expenditure plans allow these governments to consolidate their budgets and prevent significant debt growth even amid the crisis.

The specific economic indicators, as required by EU regulation, are not available for these entities. The following national economic indicators are relevant to the sovereign rating, which was used as an input to this credit rating action.

Sovereign Issuer: Russia, Government of

GDP per capita (PPP basis, US$): 28,184 (2019 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 1.3% (2019 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 3% (2019 Actual)

Gen. Gov. Financial Balance/GDP: 1.9% (2019 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 3.8% (2019 Actual) (also known as External Balance)

External debt/GDP: 28.9% (2019 Actual)

Economic resiliency: ba1

Default history: At least one default event (on bonds and/or loans) has been recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On 10 December 2020, a rating committee was called to discuss the rating of the Krasnodar, City of; Krasnodar, Krai of; Samara, Oblast of; Nizhniy Novgorod, Oblast. The main points raised during the discussion were: The issuers' governance and/or management, have materially increased. The issuers' fiscal or financial strength, including its debt profile, has materially increased.

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

The stable outlooks on Krasnodar Krai's and Krasnodar City's ratings indicate that a change in the ratings is unlikely in the near term.

Over time, positive pressure could emerge from a more rapid and pronounced debt reduction than Moody's currently expects, accompanied by stronger budgetary performances than in the rating agency's baseline.

An upgrade of Samara Oblast's or Nizhniy Novgorod Oblast's ratings would likely result from more effective fiscal management than Moody's has currently assumed, allowing the Oblasts' fiscal and debt paths to resume their improving trends more quickly. For Nizhniy Novgorod Oblast, an upgrade would also likely involve lower refinancing risks.

An upgrade in the sovereign rating could also exert upward credit pressure on any of the four regional and local governments' ratings.

At the same time, markedly weaker fiscal and debt metrics for these sub-sovereigns than Moody's currently expects, either through a sharper deterioration during the pandemic or slower recovery after it, could put downward pressure on their ratings or point to stable rather than positive outlooks.

-- RATINGS AFFECTED

Upgrades:

..Issuer: Krasnodar, City of

.... LT Issuer Rating, Upgraded to Ba3 from B1

..Issuer: Krasnodar, Krai of

.... LT Issuer Rating, Upgraded to Ba2 from Ba3

Affirmations:

..Issuer: Nizhniy Novgorod, Oblast

.... LT Issuer Rating, Affirmed Ba3

..Issuer: Samara, Oblast of

.... LT Issuer Rating, Affirmed Ba2

....Senior Unsecured Regular Bond/Debenture, Affirmed Ba2

Outlook Actions:

..Issuer: Krasnodar, City of

....Outlook, Changed To Stable From Positive

..Issuer: Krasnodar, Krai of

....Outlook, Changed To Stable From Positive

..Issuer: Nizhniy Novgorod, Oblast

....Outlook, Remains Positive

..Issuer: Samara, Oblast of

....Outlook, Remains Positive

The principal methodology used in these ratings was Regional and Local Governments published in January 2018, and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1091595. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

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

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

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

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

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

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

At least one ESG consideration was material to the credit rating action(s) announced and described above.

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.

Vladlen Kuznetsov, CFA
Vice President - Senior Analyst
Sub-Sovereign Group
Moody's Investors Service Limited, Russian Branch
7th floor, Four Winds Plaza
21 1st Tverskaya-Yamskaya St.
Moscow 125047
Russia
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Mauro Crisafulli
Associate Managing Director
Sub-Sovereign Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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

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

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

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

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

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

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

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

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

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

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

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

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

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