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 15 Spanish sub-sovereigns; outlooks unchanged

17 Apr 2018

London, 17 April 2018 -- Moody's Public Sector Europe (Moody's or MPSE) has today upgraded by one notch the ratings of 15 Spanish sub-sovereigns. The outlooks of all the sub-sovereigns remain stable. At the same time, Moody's affirmed Catalunya's rating at Ba3/Not Prime, with the outlook remaining negative.

Today's rating actions on the Spanish sub-sovereigns were triggered by: (1) the strengthening of Spain's sovereign credit profile as captured by the upgrade of Spain's ratings to Baa1 from Baa2 on 13 April 2018; and (2) the strong correlation between sub-sovereign and sovereign credit risks.

For full details, please refer to the sovereign press release: https://www.moodys.com/research/--PR_381868

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

RATINGS RATIONALE

RATIONALE FOR THE RATINGS UPGRADES

Moody's believes that the improvement of the sovereign's creditworthiness -- captured by the one notch upgrade on Spain's rating to Baa1 from Baa2-- is reflected at the regional and local level given; 1) the strong correlation between sub-sovereign and sovereign credit risks, reflected in macroeconomic linkages, institutional factors and financial market conditions; and 2) the high extraordinary support from the central government to the regions through liquidity support that will be maintained in the coming years.

Moody's also notes a significant improvement in the regions' fiscal consolidation in 2017, as the regional aggregated deficit for the year declined to -0.32% of gross domestic product (GDP) in ESA terms (vs. target of 0.6%) from -0.84% in 2016. This is credit positive for the sector as it is the first time since the start of the financial crisis in 2008 that the Spanish regions have collectively met the deficit limit target imposed by the central government. Despite regional elections in 2019, Moody's believes that the regional deficit is likely to continue to decline in 2018 as strong GDP growth bolsters regional tax revenue. This will help regions to fiscally consolidate, increasing gross operating performances and reducing deficit levels.

In addition, although regional debt levels should continue to increase through 2020, the ratio of net direct and indirect debt to operating revenue is decreasing. Aggregated regional debt to operating revenue ratio decreased to 204% in 2017 from 211% in 2016. As Spain's economy continues to improve, Moody's believes that the net direct and indirect debt-to-operating revenue ratio for the regions is likely to continue to decrease in 2018.

Moody's notes the regions' strong reliance on the Spanish government, given their extensive use of the central government's liquidity mechanisms. These include: the Fondo de Liquidez Autonomico (FLA), established in 2012 for regions that breach deficit targets set by the central government; and the Fondo de Facilidad Financiera (FFF), established in 2015 for regions that comply with deficit targets, providing regions with liquidity to fund their yearly financing needs (including deficit levels and debt redemptions). Since these liquidity mechanisms were created, 15 out of 17 Spanish regions (i.e. all regions with the exception of the Basque Country and Navarra) utilised these liquidity mechanisms; as of year-end 2017 these accounted for approximately 58% of the regional aggregated debt.

ENTITIES RATED ABOVE THE SOVEREIGN LEVEL

-- THE BASQUE COUNTRY AND THE PROVINCE OF BIZKAIA

Moody's decision to upgrade the ratings of the Basque Country and the province of Bizkaia to A3 from Baa1 reflects these entities' unique and constitutionally protected tax regimes, which currently enable them to retain sufficient credit strength to maintain their ratings one notch above that of the sovereign. In addition, the Basque Country and the province of Bizkaia have comfortable liquidity positions, which limit their refinancing risk. Both Bizkaia and the Basque Country recorded positive operating balances and financing surpluses in 2017, expected to continue in 2018.

ENTITIES RATED AT THE SOVEREIGN LEVEL

--CITY OF BARCELONA

Moody's upgrade of the city of Barcelona's rating to Baa1 from Baa2 reflects the city's good budgetary management and solid financial fundamentals in recent years, as evidenced by the city's limited debt burden (33% of revenue in 2017) and high gross operating balance (20% of operating revenue on average for 2012-17). The rating also reflects Barcelona's strong liquidity position. Moody's expects this sound financial performance will continue in coming year.

While Moody's acknowledges Barcelona's robust financials, the city does not have sufficient financial flexibility to justify a rating above that of the sovereign. The central government retains control of Spanish municipalities via legislation, the level of transfers, and the management of pay-raise packages for civil servants.

-- REGIONS OF CASTILLA Y LEON, GALICIA AND MADRID

Moody's decision to upgrade the ratings of these regions to Baa1 from Baa2, on par with the sovereign's rating reflects the rating agency's view that these three regions have reported stronger financial performances than other Moody's-rated Spanish regions throughout the financial crisis; these regions' deficits are controlled and their debt levels, although increasing, are manageable and consistent with this rating level. Moody's expects that the financial performance of these three regions will continue to improve in the next two years.

In addition, Castilla y Leon and Madrid access financial markets, with a high portion of their financing needs being covered by bond issuances in 2017. Madrid was the first Spanish region to arrange sustainable financing in Spain in 2017 and will continue with this approach this year.

ENTITIES RATED BELOW THE SOVEREIGN LEVEL

--REGIONS OF ANDALUCIA, CASTILLA- LA MANCHA, EXTREMADURA, MURCIA AND VALENCIA

Moody's one-notch rating upgrade of the regions of Andalucia and Extremadura (to Baa2 from Baa3), primarily reflects that the fiscal position of these two regions is stronger than the other regions rated below the sovereign level. Their fiscal performance has significantly improved in the last two years, reducing deficit levels, and Moody's expects that these improvements will continue in 2018. At the same time, the debt levels of Andalucia and Extremadura are low compared with national peers at around 130% and 105% of operating revenue, respectively (compared with 204% for the rated regions on average).

Castilla-La Mancha, Murcia and Valencia's ratings were upgraded by one-notch to Ba1 from Ba2. These three regions have relatively weaker fiscal positions, and Moody's believes that they will remain fragile over the next few years. However, Castilla-La Mancha's financing deficit is lower than the other two regions (-3% of operating revenue in 2017 vs. around -10% for Murcia and -14% for Valencia). While Moody's believes debt levels for these three regions will continue to increase in 2018, net direct and indirect debt to operating revenue ratios will decrease in 2018, as they have done in 2017.

Moody's notes that these five regions will continue to receive liquidity support from the central government through the FLA or the FFF in 2018, reducing the short-term risk of a region's liquidity-driven default and covering their financial obligations.

RATIONALE FOR RATING AFFIRMATION

-- REGION OF CATALUNYA

The Generalitat de Catalunya's long-term issuer and debt ratings have been affirmed at Ba3/Not Prime, with the outlook remaining negative.

The rationale to affirm the region's rating at Ba3 is mainly based on the region's weak fiscal position, reflected in the presence of very high debt levels and Moody's view that persistent political tensions between the region and the central government over independence is affecting the regional economy, particularly foreign direct investment. The affirmation of the region's rating is also based on the high extraordinary support received from the central government via the FLA and Moody's expectations that support would continue to be forthcoming.

The rationale to maintain its negative outlook mainly reflects the continued political tension between the region and the central government. Moody's expects that political instability, unresolved following the regional elections of 21 December 2017, will continue to negatively affect the region's business environment, adding pressure to the region's already weak finances.

RATIONALE FOR STABLE OUTLOOK

Moody's decision to maintain a stable outlook on all Spanish sub-sovereigns ratings (with the exception of Catalunya) reflects the rating agency's view that Spanish regional and local governments will continue to improve their fiscal positions in the next two to three years, as well as Moody's expectation that regional debt-to-revenue ratio will continue to decrease. At the same time, the stable outlook mirrors the outlook for the government of Spain (Baa1 stable).

WHAT COULD CHANGE THE RATINGS UP/DOWN

The strengthening of Spain's credit profile, as reflected by an upgrade of the sovereign rating, would result in upward pressure on Spanish sub-sovereign ratings in general, and particularly on those ratings currently on par or above that of the sovereign. In addition, upward pressure would develop on sub-sovereigns currently rated below the sovereign, if their fiscal and financial performance were to improve.

A downgrade of Spain's sovereign rating leading to indications of weakening government support for the regions, or a deterioration in their fiscal performance, would likely lead to a downgrade of sub-sovereign entities.

Given the negative outlook on Catalunya's rating, an upgrade is unlikely over the next 12 to 18 months. Downward pressure on the rating could occur if Catalunya's new government reverses the region's fiscal consolidation. In addition, a downgrade of the sovereign rating, or any indication of weakening government support, would likely lead to a downgrade in Catalunya's rating.

LIST OF AFFECTED RATINGS

Upgrades:

..Issuer: Andalucia, Junta de

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

....Senior Unsecured MTN Program, Upgraded to (P)Baa2 from (P)Baa3

....Senior Unsecured Regular Bond/Debenture, Upgraded to Baa2 from Baa3

..Issuer: Extremadura, Junta de

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

..Issuer: Galicia, Comunidad Autonoma de

....LT Issuer Rating, Upgraded to Baa1 from Baa2

..Issuer: Madrid, Comunidad Autonoma de

....LT Issuer Rating, Upgraded to Baa1 from Baa2

..Issuer: Barcelona, City of

....LT Issuer Rating, Upgraded to Baa1 from Baa2

..Issuer: Basque Country (The)

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

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

..Issuer: Bizkaia, Diputacion Foral de

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

..Issuer: CACSA

. Underlying Senior Secured, upgraded to Ba1 from Ba2

.Backed Senior Secured upgraded to Ba1 from Ba2

..Issuer: Castilla y Leon, Junta de

....LT Issuer Rating, Upgraded to Baa1 from Baa2

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

..Issuer: Castilla-La Mancha, Junta de Comunidades de

....LT Issuer Rating, Upgraded to Ba1 from Ba2

....Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2

..Issuer: FERIA VALENCIA

.Underlying Senior Secured upgraded to Ba1 from Ba2

..Issuer: Instituto Valenciano de Finanzas

....Backed Senior Unsecured Bank Credit Facility, Upgraded to Ba1 from Ba2

..Issuer: Murcia, Comunidad Autonoma de

....LT Issuer Rating, Upgraded to Ba1 from Ba2

....Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2

..Issuer: Universities of Valencia

.Underlying Senior Secured, Upgraded to Ba1 from Ba2

....Backed Senior Secured Bond/Debenture, Upgraded to Ba1 from Ba2

..Issuer: Valencia, Generalitat de

....Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from Ba2

Affirmations:

..Issuer: Catalunya, Generalitat de

....LT Issuer Rating, Affirmed Ba3

....Senior Unsecured Regular Bond/Debenture, Affirmed Ba3

....Senior Unsecured MTN Program, Affirmed (P)Ba3

....Other Short Term, Affirmed (P)NP

.... Commercial Paper, Affirmed NP

..Issuer: FERIA VALENCIA

..Backed Senior Secured, Affirmed at A2, in line with Assured Guaranty (Europe) Ltd.'s rating.(A and B Certificates)

..Issuer: Valencia, Generalitat de

.... Commercial Paper, Affirmed NP

Outlook Actions:

..Issuer: Andalucia, Junta de

....Outlook, Remains Stable

..Issuer: Extremadura, Junta de

....Outlook, Remains Stable

..Issuer: Galicia, Comunidad Autonoma de

....Outlook, Remains Stable

..Issuer: Madrid, Comunidad Autonoma de

....Outlook, Remains Stable

..Issuer: Barcelona, City of

....Outlook, Remains Stable

..Issuer: Basque Country (The)

....Outlook, Remains Stable

..Issuer: Bizkaia, Diputacion Foral de

....Outlook, Remains Stable

..Issuer: CACSA

....Outlook, Remains Stable

..Issuer: Castilla y Leon, Junta de

....Outlook, Remains Stable

..Issuer: Castilla-La Mancha, Junta de Comunidades de

....Outlook, Remains Stable

..Issuer: Catalunya, Generalitat de

....Outlook, Remains Negative

..Issuer: FERIA VALENCIA

....Outlook, Remains Stable

..Issuer: Instituto Valenciano de Finanzas

....Outlook, Remains Stable

..Issuer: Murcia, Comunidad Autonoma de

....Outlook, Remains Stable

..Issuer: Universities of Valencia

....Outlook, Remains Stable

..Issuer: Valencia, Generalitat de

....Outlook, Remains Stable

The sovereign action required the publication of these credit rating actions 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: Spain, Government of

GDP per capita (PPP basis, US$): 36,347 (2016 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 3.3% (2016 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.6% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -4.5% (2016 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: 1.9% (2016 Actual) (also known as External Balance)

External debt/GDP: [not available]

Level of economic development: High level of economic resilience

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

On 12 April 2018, a rating committee was called to discuss the rating of the Andalucia, Junta de; Barcelona, City of; Basque Country (The); Bizkaia, Diputacion Foral de; CACSA; Castilla y Leon, Junta de; Castilla-La Mancha, Junta de Comunidades de; Catalunya, Generalitat de; Extremadura, Junta de; FERIA VALENCIA; Galicia, Comunidad Autonoma de; Instituto Valenciano de Finanzas; Madrid, Comunidad Autonoma de; Murcia, Comunidad Autonoma de; Universities of Valencia; Valencia, Generalitat de. The main points raised during the discussion were: The systemic risk in which the issuer operates has materially decreased.

The principal methodology used in rating of Junta de Andalucia, City of Barcelona, Basque Country, Diputacion Foral de Bizkaia, Junta de Castilla y Leon, Junta de Comunidades de Castilla-La Mancha, Generalitat de Catalunya, Junta de Extremadura, Comunidad Autonoma de Galicia, Comunidad Autonoma de Madrid, Comunidad Autonoma de Murcia, Generalitat de Valencia was Regional and Local Governments published in January 2018.

The principal methodology used for CACSA, FERIA VALENCIA, Instituto Valenciano de Finanzas and Universities of Valencia's ratings was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017. 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.

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 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.

Marisol Blazquez
Analyst
Sub-Sovereign Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

David Rubinoff
MD - Sub Sovereigns
Sub-Sovereign Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service EMEA 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.
© 2019 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 ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.

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 the Moody’s 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 SUCH RATING OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

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 rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

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

Moody’s Public Sector Europe is the trading name of Moody’s Investors Service EMEA Limited, a company incorporated in England with registered number 8922701 that operates as part of the Moody’s Investors Service division of the Moody’s group of companies.
Moodys.com