Moodys.com
Close
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
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” [at the end of this document], 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 inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, 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.            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.          

3.            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.

4.            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.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding 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 ratings of 13 Czech sub-sovereigns

08 Oct 2019

Frankfurt am Main, October 08, 2019 -- Moody's Public Sector Europe (Moody's) has today upgraded the global scale issuer ratings of 12 Czech regional and local governments (RLGs) and one government-related issuer (GRI). At the same time, Moody's has upgraded the national scale issuer ratings of five Czech RLGs and one GRI and affirmed the national scale issuer ratings of three RLGs. The outlook of all the entities' ratings has changed to stable from positive, with the exception of City of Liberec where the positive outlook was maintained.

Today's rating actions follow an improvement of the Czech Republic's sovereign credit profile as captured by Moody's upgrade of the sovereign rating to Aa3 with a stable outlook from A1 positive on 4 October 2019, as well as idiosyncratic credit improvements. For additional information on the sovereign rating action, please refer to the related announcement: https://www.moodys.com/research/--PR_408085.

Specifically, Moody's has upgraded the following global scale issuer ratings to Aa3 with a stable outlook from A1 positive: City of Prague, City of Brno, City of Ostrava, and City of Prostejov. The global scale issuer ratings of the cities of Trebic, Zdar nad Sazavou and Uherske Hradiste were upgraded to A1 with a stable outlook from A2 positive. For the City of Prague the senior unsecured debt rating was upgraded to Aa3 from A1.

The global scale issuer rating of the City of Liberec was upgraded to A3 positive outlook from Baa1 positive.

At the same time, the global scale issuer ratings of the following regions were upgraded to A1 with a stable outlook from A2 positive: South-Moravian Region, Moravian-Silesian Region, Usti Region and Liberec Region.

Moody's has also upgraded the global scale issuer rating of the GRI Sprava a udrzba silnic Pardubickeho kraje to A1 with a stable outlook from A2 positive.

Moody's has upgraded Prague, Brno, Ostrava, and Prostejov's baseline credit assessment (BCA) to aa3 from a1 and the BCA of Trebic and Zdar nad Sazavou to a1 from a2. The BCA of the City of Uherske Hradiste was upgraded to a1 from a3, while the City of Liberec's BCA was upgraded to baa1 from baa2. The BCA of the South-Moravian Region, Moravian-Silesian Region, Usti Region and Liberec Region was upgraded to a1 from a3.

Concurrently, Moody's has upgraded the national scale issuer ratings of the following RLGs and GRI: City of Prostejov (upgraded to Aaa.cz from Aa1.cz); South-Moravian Region, Usti Region, Liberec Region and Sprava a udrzba silnic Pardubickeho kraje (upgraded to Aa2.cz from Aa3.cz); City of Uherske Hradiste (upgraded to Aa2.cz from Aa3.cz) and affirmed the NSRs of Aa2.cz of the cities of Trebic and Zdar nad Sazavou and the A3.cz of the City of Liberec.

RATINGS RATIONALE

RATIONALE FOR UPGRADING THE RATINGS OF FOUR CITIES TO Aa3 FROM A1

The upgrade of the ratings of the cities of Prague, Brno, Ostrava, and Prostejov follows the upgrade of the sovereign bond rating, and reflects an improvement of their strong individual performances in addition to their institutional, macroeconomic and financial linkages to the national government. Moody's expects that the continued economic growth of the national economy will further support tax revenue growth of Czech RLGs.

Prague, Brno and Ostrava are the three biggest cities in the Czech Republic and are characterized by their large and diversified economic base. The upgrade of these cities' global scale ratings reflects (1) their strong operating performances with average gross operating balance-to-operating revenue ratio between 22% (Ostrava), 24% (Prague) and 26% (Brno) over the last five years; (2) and declining debt levels that are already considered low representing 20% of Ostrava's operating revenue, 22% for Prague and 28% for Brno at year-end 2018.

On the other hand, Prostejov is characterized by very conservative budgetary management with strong operating margins at a high 24% of operating revenue in 2018, zero debt and no plan to borrow in the next two years.

RATIONALE FOR UPGRADING THE RATINGS OF THREE CITIES TO A1 FROM A2

The upgrade of the ratings of the cities of Trebic, Zdar nad Sazavou and Uherske Hradiste also reflects their improving fiscal performances in addition to their close institutional, macroeconomic and financial linkages with the Czech government.

The ratings of all three cities are supported by their solid operating margins varying between 16% (Zdar nad Sazavou) and 21% (Trebic) of operating revenue at year-end 2018. With the sole exception of Uherske Hradiste whose debt level was a low 32% of operating revenue in 2018, the debt levels of other two cities averaged a very low 10% of operating revenue, well below the sector average. Finally, the accumulated cash reserves of all three cities fully cover their outstanding debt.

RATIONALE FOR UPGRADING THE RATING OF THE CITY OF LIBEREC TO A3 FROM Baa1, WHILE MAINTAINING THE POSITIVE OUTLOOK

The upgrade of Liberec's rating reflects the improvement of its financial performance and debt metrics. The gross operating margin of the city has significantly fallen to 7.5% operating revenues in 2018, mainly due to one offs (higher repair costs and debt restructuring). However we expect this metric to rebound to 10-12% in 2019-20.

Concurrently the debt burden has materially decreased to around 79% of operating revenue from 120% in 2013 and liquidity levels improved to 25% of operating revenue from 6% over the same period.

The positive outlook for Liberec reflects Moody's expectations that performance, liquidity and debt metrics will continue to steadily improve over the next few years thanks on sustained revenue growth and tight grip on expenditures.

RATIONALE FOR UPGRADING THE RATINGS OF FOUR REGIONS TO A1 FROM A2

The upgrade of the ratings of South-Moravian Region, Moravian-Silesian Region, Usti Region and Liberec Region primarily reflects an improvement in the individual credit metrics such as the decline in debt level, currently ranging from 5% (Region of Liberec) to 11% (South-Moravian Region) of operating revenues and a gradual improvement in liquidity to levels that fully cover direct debt at the end of the 2nd Quarter 2019. In addition to this it takes into account the close institutional, macroeconomic and financial linkages that exist between the Czech government and Czech regions.

All Czech regions feature relatively stable financial performances despite their very limited control over their revenue base, with the bulk of the regions' operating revenues stemming from central government transfers, in the form of earmarked grants for education and social services, which account for approximately 64% of operating revenues in 2018. Shared taxes, a national pool made up of value added tax (VAT), personal income tax (PIT) and corporate income tax (CIT) receipts, make up about 35% of the regions' operating revenue with the remainder of operating revenues derived from non-tax revenue.

RATIONALE FOR UPGRADING THE RATING OF SPRAVA A UDRZBA SILNIC PARDUBICKEHO KRAJE TO A1 STABLE FROM A2 POSITIVE

The upgrade of the rating of Sprava a udrzba silnic Pardubickeho kraje (SUS PK) and the change of the outlook to stable reflect its status as a GRI, wholly owned by the Pardubice Region (unrated) and the strong institutional and financial linkages with its support provider. Moody´s assesses the very high likelihood that the region would provide timely support should the entity face acute liquidity stress.

RATIONALE FOR STABLE OUTLOOKS FOR 11 CZECH RLGs

The stable outlooks on the ratings of the 11 RLGs mirror the stable outlook on the sovereign government bond rating. The outlooks reflect Moody's expectations that financial and debt metrics will be preserved at the current level or even improve thanks to sustained revenue growth and good cost controls.

RATIONALE FOR UPGRADING OF THE NATIONAL SCALE RATINGS

The upgrade of the national scale ratings of five RLGs (Aaa.cz of City of Prostejov), (Aa2.cz of City of Uherske Hradiste, Liberec Region, South-Moravian Region, Usti Region), reflects their improved operating performances, which strengthened their self-funding capacity and ultimately let to financial surpluses. The upgrade of the national scale ratings of Sprava a udrzba silnic Pardubickeho kraje reflect the strengthening of the credit profile of the region of Pardubice (unrated) due to the tight linkage between these entities.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Environmental considerations are not material to the RLGs' and GRI's ratings.

Social considerations are not material to the RLGs' and GRI's ratings.

Governance risks are material to the Czech RLGs' ratings. Prague, Brno and Ostrava utilize prudent financing planning which allows for multi-year forecasting of key trends, providing the cities with the ability to identify potential pressures and allows for sufficient time to adjust plans accordingly to mitigate any credit implications. Smaller cities, except Liberec, provide transparent, timely financial reports and adhere to strict policies on debt and investment management. A risk for the smaller cities (Uherske Hradiste, Prostejov, Zdar nad Sazavou and Trebic) is their reliance on a very small team, which could have a negative impact on the credit profile in case the critical people decided to leave. Aggressive financial management in the past has impacted the credit profile of the city of Liberec, increasing its debt to very high levels. However, the current administration practices a more balanced budget which decreased the city´s debt over the last six years.

Regions historically display good governance practices, especially in terms of transparency and disclosure, policy credibility and budgetary management.

Governance risks are material to Sprava a udrzba silnic Pardubickeho kraje ratings. The governance framework is intrinsically intertwined with the supporting government, which exerts strong oversight and ultimately takes key decisions.

WHAT COULD CHANGE THE RATINGS UP/DOWN

A further strengthening of the Czech sovereign credit profile could lead to upward rating pressure for regional and local governments.

For RLGs rated below the sovereign rating level, evidence of a given entity's ability to display comparatively stronger credit fundamentals could also exert upward rating pressure.

Although unlikely given the recent upgrade, a deterioration of the sovereign credit profile could result in downward rating pressure. A prolonged fiscal slippage causing a relevant growth in current debt metrics could also negatively affect the ratings.

For the GRI a positive or negative change in the creditworthiness of its support provider (the Region of Pardubice) will result in a concomitant change of the existing ratings.

The sovereign action required the publication of this credit rating action on a date that deviates from the previously scheduled release date in the sovereign release calendar, published on www.moodys.com.

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: Czech Republic, Government of

GDP per capita (PPP basis, US$): 37,371 (2018 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 3% (2018 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.6% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 0.9% (2018 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 0.3% (2018 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: Very High level of economic resilience

Default history: No default events (on bonds or loans) have been recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On 04 October 2019, a rating committee was called to discuss the rating of the Brno, City of; Liberec, City of; Liberec, Region of; Moravian-Silesian, Region of; Ostrava, City of; Prague, City of; Prostejov, City of; South-Moravian Region; Trebic, City of; Usti, Region of; Zdar nad Sazavou, City of; Uherske Hradiste, City of; Sprava a udrzba silnic Pardubickeho kraje. The main points raised during the discussion were: The systemic risk in which the issuer operates has materially decreased. The issuer's fiscal or financial strength, including its debt profile, has materially increased.

The principal methodology used in rating Brno, City of; Liberec, City of; Liberec, Region of; Moravian-Silesian, Region of; Ostrava, City of; Prague, City of; Prostejov, City of; South-Moravian Region; Trebic, City of; Usti, Region of; Zdar nad Sazavou, City of; Uherske Hradiste, City of was Regional and Local Governments published in January 2018. The principal methodology used in rating Sprava a udrzba silnic Pardubickeho kraje was Government-Related Issuers published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

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

Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons, please see http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1174796.

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.

Vojtech Zelezny
Analyst
Sub-Sovereign Group
Moody's Deutschland GmbH, Czech branch
Washingtonova 17
110 00 Praha 1 (Prague 1)
Prague
Czech Republic
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 Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2020 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 INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S 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 INVESTORS SERVICE 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 MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE 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 $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

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

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

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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

​​​​​​​​
Moodys.com