Moodys.com
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”, 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 the ratings of the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) to Aaa with stable outlooks

10 Jun 2022

Frankfurt am Main, June 10, 2022 -- Moody's Investors Service ("Moody's") has today upgraded the European Stability Mechanism's (ESM) long-term issuer and senior unsecured ratings to Aaa from Aa1, the senior unsecured MTN programme rating to (P)Aaa from (P)Aa1, and affirmed the short-term issuer rating at P-1 as well as the other short-term ratings at (P)P-1/P-1.

At the same time, Moody's has upgraded the European Financial Stability Facility's (EFSF) long-term issuer and backed senior unsecured ratings to Aaa from Aa1, the backed senior unsecured MTN programme rating to (P)Aaa from (P)Aa1, and affirmed the EFSF's backed other short-term rating at (P)P-1.

The outlook remains stable for both the ESM and the EFSF.

The key driver for today's rating actions is Moody's view that the improved robustness of the European crisis-fighting architecture – as exemplified during the coronavirus pandemic – reduces the risk of a systemic crisis with a high default correlation among EU member countries. During the pandemic, the substantial crisis support funded by joint debt issuance under the auspices of the European Union (EU, Aaa stable), together with continued supporting measures from the European Central Bank (ECB), have strengthened the confidence in the resilience of the EU and its member states and by extension also of the euro area and its member states.

As a consequence, in the highly unlikely event of the Government of France (Aa2 stable) as the second largest supporter to ESM and EFSF defaulting, Moody's views it now as less likely than previously assumed that most lower rated euro area member states would be in default, too. While the ratings of the largest and highest-rated shareholders – in particular the Government of Germany (Aaa stable), France and the Government of the Netherlands (Aaa stable) – remain of high importance for the ESM's and EFSF's ratings, the reliance on any single member state rating, in particular on France's rating, has in Moody's view declined.

Please see the individual issuer-specific statements below for the detailed rating rationales.

MOODY'S UPGRADES THE ESM'S RATINGS TO Aaa, OUTLOOK STABLE

Moody's has today upgraded the ESM's long-term issuer and senior unsecured ratings to Aaa, the senior unsecured MTN programme rating to (P)Aaa, and affirmed the short-term issuer rating at P-1 and the other short-term ratings at (P)P-1/P-1. The outlook remains stable.

Key drivers for the ratings upgrade are:

(1) The increased robustness of European crisis-fighting architecture, that includes the EU and the ECB, which in Moody's view reduces the risk of a systemic crisis with a high default correlation among EU member countries. The dependence of the ESM's rating on a single shareholder's rating – namely France – has declined in Moody's view;

(2) The expected benefits to ESM's credit profile resulting from ESM Treaty reform, which will prospectively reduce concentration risk by lowering the shareholder-borrower overlap in the event of a crisis, weakening the ESM's exposure to a potential systemic crisis.

The stable outlook is supported by the very high shareholder support, including sizable callable capital and Moody's view of very strong extraordinary support, if needed. Furthermore, the ESM's credit profile is underpinned by the ESM's very strong credit metrics, marked by low leverage, very strong asset performance, and extremely strong liquidity and very high quality of funding.

RATINGS RATIONALE

RATIONALE FOR THE UPGRADE TO Aaa

FIRST DRIVER: IMPROVED ROBUSTNESS OF EUROPE'S CRISIS-FIGHTING ARCHITECTURE

The coronavirus pandemic tested the European architecture of crisis-fighting mechanisms. Moody´s recognizes that core European institutions like the EU and the ECB are able and determined to act in times of crisis. The expansion of the EU´s crisis-fighting instruments – in particular the implementation of the Next Generation EU programme which is, in addition to loans, based on grants – reduces to some degree the mutuality and interdependence of risk stemming from euro area membership.

The expanded European crisis-fighting architecture reduces the ESM´s default dependence on any single member country, including France, the ESM´s second largest shareholder given the reduced likelihood of a systemic crisis with very high default correlation.

SECOND DRIVER: PROSPECTIVE BENEFITS FROM ESM TREATY REFORM

Moody's expects that certain elements of the pending ESM Treaty reform will potentially reduce ESM´s borrower concentration as well as the borrower-shareholder overlap, and can lower the exposure of the ESM to a systemic crisis.

One key element of the reform is that the ESM will become the common backstop for the Single Resolution Fund (SRF), the instrument of the Single Resolution Mechanism (SRM) which finances the resolution of failing credit institutions within the EU's banking union in cases the private sector cannot agree on recovery plans. This will reduce concentration risk by lowering the shareholder-borrower overlap in the event of a crisis, lowering the exposure of the ESM to a systemic crisis.

The expected introduction of changes to existing lending programs will incentivize member states to seek financial support before facing financial distress, which will further reduce contagion risks. Moody's also notes ESM's prospective stronger role in preparing and monitoring future financial assistance programs.

Moody's expects that the delay to the ESM Treaty reform because of the stalled legislative process in Germany and the Government of Italy (Baa3 stable), which has pushed back the implementation from January 2022, will prove to be temporary.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that downside risks to the Aaa rating are effectively mitigated by the entity's very strong credit profile. The stable outlook is further supported by the very high shareholder support and the ESM's strategic role as a key crisis-fighting European institution.

The ESM has substantial paid-in capital of €80.5 billion or 11.4% of the total subscribed capital of €704.8 billion at end-2021. The ESM has retained all net profits generated since its creation which has increased its reserve fund and further strengthened its capital position. This results in a comparatively low leverage ratio of 115.6%, one of the lowest among Moody's-rated multilateral development banks (MDBs). Moody's is unaware of any registered loan delinquency to date and expects that ESM's asset performance will remain solid in the coming years.

The ESM's liquidity position and funding structure are very strong. The institution runs a very prudent liquidity and capital management policies intended to ensure that there is no shortfall of available liquid assets to service its obligations under various stress assumptions.

Finally, the ESM's financial strength is further supported by a robust oversight and the ESM management's capabilities of proactively managing potential credit pressures – namely the risk of non-payment of one of its three borrowers – through its Early Warning System (EWS) with a significant lead time. The ESM also participates in missions to programme countries and closely cooperates with the European Commission, the ECB and the IMF.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

The ESM's credit impact score is positive (CIS-1), driven mainly by its very strong governance framework coupled with neutral-to-low exposure to environmental and social risks. Furthermore, given its role as the euro area's permanent crisis-resolution mechanism the ESM benefits from very strong support by its euro area sovereign shareholders.

The ESM's environmental issuer profile score is neutral-to-low (E-2) because its issuer profile shows limited exposure to environmental risks. The ESM's environmental risk exposure stems from its three sovereign borrowers (Greece, Spain, Cyprus), which have either neutral-to-low or moderately negative exposure to environmental risks. The ESM's comprehensive risk management framework helps to mitigate and manage any risks that could potentially arise from borrowing countries facing exposure to physical climate or other environmental risks.

The ESM's social issuer profile score is neutral-to-low (S-2). Given its role as the euro area's permanent crisis-resolution mechanism, social considerations such as customer relations, responsible production or demographic and societal trends are not relevant to the ESM's credit profile.

The ESM's governance issuer profile score is positive (G-1). The governance profile shows particular strengths in risk management and overall quality of management. A key feature is the ESM's Early Warning System which enables the ESM to rapidly call on additional capital from shareholders should there be a rising risk of non-payment from one of its borrowers. The ESM participates in missions to programme countries and closely cooperates with the European Commission, ECB and IMF.

The specific economic indicators, as required by EU regulation, are not available for this entity.

On 07 June 2022, a rating committee was called to discuss the rating of the European Stability Mechanism (ESM). The main points raised during the discussion were: The issuer's governance and/or management, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The systemic risk in which the issuer operates has decreased.

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

WHAT COULD CHANGE THE RATINGS UP

The ESM's rating is Aaa, which is already at the top of Moody's rating scale. An upgrade to a higher rating is therefore not possible.

WHAT COULD CHANGE THE RATINGS DOWN

Indication of waning shareholder support towards the ESM would be credit negative. While the ESM's credit profile is resilient to weakening creditworthiness of individual member states, the ratings would face downward pressure in a systemic crisis that would weigh on shareholders' ability to provide support. In particular, the ESM's rating would be sensitive to simultaneous rating downgrades of large and highly-rated shareholders.

MOODY'S UPGRADES THE EFSF TO Aaa, OUTLOOK STABLE

Moody's has today upgraded the EFSF's long-term issuer and backed senior unsecured ratings to Aaa, and the backed senior unsecured MTN programme rating to (P)Aaa. The EFSF's backed other short-term rating was affirmed at (P)P-1. The outlook remains stable.

RATINGS RATIONALE

RATIONALE FOR THE UPGRADE TO Aaa

In line with the rating upgrade for the ESM, Moody's sees the increasing robustness of the European crisis-fighting architecture as a key driver for the decision to upgrade the EFSF's ratings. In addition, Moody's regards the reputational damage to the ESM and its shareholders as very high were the EFSF to default, which supports the alignment of the two entities' ratings.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects the very high strength of member support, which in turn is based on the strong ability of the EFSF's guarantors to provide financial support if needed, and their very high willingness to support, as embedded in the very strong guarantee mechanism and Moody's assumption of very strong extraordinary support in case needed. Moreover, the institution's prudent liquidity management and very solid market access mitigates refinancing risks.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Environmental risks are not material for the EFSF's rating. Environmental risk exposure stems from its three sovereign borrowers (Ireland, Greece, Portugal), which have either neutral-to-low or moderately negative exposure to environmental risks. The EFSF's comprehensive risk management framework (through the ESM) helps to mitigate and manage any risks that could potentially arise from borrowing countries facing exposure to physical climate or other environmental risks.

Social risks are not material for the EFSF's rating, amid the relative social and political stability within the euro area. While all euro area member states face long-term challenges related to demographic and other social developments, social considerations do not directly influence the EFSF's rating in a material way.

Governance considerations are material. The sound governance framework is illustrated by prudent risk management policies, and high standard governance principles, aligned with the ESM which carries out all day-to-day business for the EFSF.

The specific economic indicators, as required by EU regulation, are not available for this entity.

On 07 June 2022, a rating committee was called to discuss the rating of the EFSF (European Financial Stability Facility). The main points raised during the discussion were: The issuer's governance and/or management, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The systemic risk in which the issuer operates has decreased.

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

WHAT COULD CHANGE THE RATINGS UP

The EFSF's rating is Aaa, which is already at the top of Moody's rating scale. An upgrade to a higher rating is therefore not possible.

WHAT COULD CHANGE THE RATINGS DOWN

Signs of weakening shareholder support towards the EFSF would be credit negative. While the EFSF's credit profile is resilient to deteriorating creditworthiness of individual guarantors, the rating would likely face downward pressure in a systemic crisis that would lead to a significant reduction in guarantors' ability to honour their guarantees. The EFSF's rating would be particularly sensitive to simultaneous rating downgrades of large and highly-rated shareholders.  

The principal methodology used in these ratings was Multilateral Development Banks and Other Supranational Entities Methodology published in October 2020 and available at https://ratings.moodys.com/api/rmc-documents/69182. Alternatively, please see the Rating Methodologies page on https://ratings.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 on https://ratings.moodys.com/rating-definitions.

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 issuer/deal page for the respective issuer on https://ratings.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 https://ratings.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://ratings.moodys.com/documents/PBC_1288235.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.

Please see https://ratings.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 issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating.

Steffen Dyck
Senior Vice President
Sovereign Risk Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main, 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Alejandro Olivo
MD-Sovereign/Sub Sovereign
Sovereign Risk 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.
© 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.

Moodys.com