U.S. markets closed
  • S&P 500

    3,768.25
    -27.29 (-0.72%)
     
  • Dow 30

    30,814.26
    -177.24 (-0.57%)
     
  • Nasdaq

    12,998.50
    -114.10 (-0.87%)
     
  • Russell 2000

    2,123.20
    -32.15 (-1.49%)
     
  • Crude Oil

    52.03
    -0.33 (-0.63%)
     
  • Gold

    1,834.20
    +4.30 (+0.23%)
     
  • Silver

    25.02
    +0.15 (+0.62%)
     
  • EUR/USD

    1.2079
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    1.0970
    -0.0320 (-2.83%)
     
  • GBP/USD

    1.3534
    -0.0050 (-0.37%)
     
  • USD/JPY

    103.7590
    -0.0410 (-0.04%)
     
  • BTC-USD

    36,261.71
    +202.83 (+0.56%)
     
  • CMC Crypto 200

    703.34
    -31.80 (-4.33%)
     
  • FTSE 100

    6,727.64
    -8.07 (-0.12%)
     
  • Nikkei 225

    28,242.21
    -276.97 (-0.97%)
     

GA Global Funding -- Moody’s rates GA Global Funding Trust program (P)A3; positive outlook

·33 min read

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>/nwsys/www/images/PR_1000004032</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="date" content="2021-01-07T13:40:04+00:00"/> <style type="text/css"> <!-- .xflip { -moz-transform: scaleX(-1); -webkit-transform: scaleX(-1); -o-transform: scaleX(-1); transform: scaleX(-1); filter: fliph; } .yflip { -moz-transform: scaleY(-1); -webkit-transform: scaleY(-1); -o-transform: scaleY(-1); transform: scaleY(-1); filter: flipv; } .xyflip { -moz-transform: scaleX(-1) scaleY(-1); -webkit-transform: scaleX(-1) scaleY(-1); -o-transform: scaleX(-1) scaleY(-1); transform: scaleX(-1) scaleY(-1); filter: fliph + flipv; } --> </style> </head> <body bgcolor="#A0A0A0" vlink="blue" link="blue"> <!-- Page 1 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft00{font-size:18px;font-family:Times;color:#000000;} .ft01{font-size:18px;font-family:Times;color:#1257c7;} .ft02{font-size:14px;font-family:Times;color:#666666;} .ft03{font-size:13px;font-family:Times;color:#0d0c0c;} .ft04{font-size:13px;line-height:31px;font-family:Times;color:#0d0c0c;} .ft05{font-size:13px;line-height:30px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page1-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032001.png" alt="background image"/> <p style="position:absolute;top:163px;left:108px;white-space:nowrap" class="ft00"><b>Rating Action:&#160;</b></p> <p style="position:absolute;top:163px;left:252px;white-space:nowrap" class="ft01"><b>Moody’s rates GA Global Funding Trust program (P)A3;</b></p> <p style="position:absolute;top:187px;left:108px;white-space:nowrap" class="ft01"><b>positive outlook</b></p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02"><b>7 January 2021</b></p> <p style="position:absolute;top:267px;left:108px;white-space:nowrap" class="ft03">New York, January 7, 2021 – Moody’s Investors Service, (“Moody’s”) has assigned a rating of</p> <p style="position:absolute;top:287px;left:108px;white-space:nowrap" class="ft03">(P)A3 to the $10 billion funding agreement-backed global note issuance program (FABN) of GA</p> <p style="position:absolute;top:306px;left:108px;white-space:nowrap" class="ft03">Global Funding Trust. GA Global Funding Trust is a newly organized special purpose statutory</p> <p style="position:absolute;top:326px;left:108px;white-space:nowrap" class="ft03">trust organized under the laws of the State of Delaware. The notes issued by GA Global Funding</p> <p style="position:absolute;top:345px;left:108px;white-space:nowrap" class="ft03">Trust are secured by funding agreement contract obligations issued by Forethought Life Insurance</p> <p style="position:absolute;top:365px;left:108px;white-space:nowrap" class="ft03">Company (FLIC; insurance financial strength (IFS) of A3 positive). The payments made to FLIC by</p> <p style="position:absolute;top:384px;left:108px;white-space:nowrap" class="ft03">the initial purchaser in connection with each funding agreement will be maintained in FLIC’s general</p> <p style="position:absolute;top:404px;left:108px;white-space:nowrap" class="ft04">account. The outlook on GA Global Funding Trust is positive.<br/>RATINGS RATIONALE<br/>This is Global Atlantic’s first FABN program. The program is an unregistered (with the SEC) 144A</p> <p style="position:absolute;top:485px;left:108px;white-space:nowrap" class="ft03">FABN global senior secured MTN program. The notes will be offered in separate series, the</p> <p style="position:absolute;top:505px;left:108px;white-space:nowrap" class="ft03">proceeds of which will be used to purchase a funding agreement, which secure the notes and mirror</p> <p style="position:absolute;top:524px;left:108px;white-space:nowrap" class="ft03">the notes in interest payments, amortization, and repayment, etc. In establishing the program, the</p> <p style="position:absolute;top:544px;left:108px;white-space:nowrap" class="ft03">company obtained the opinion of an outside counsel that has opined that claims under funding</p> <p style="position:absolute;top:563px;left:108px;white-space:nowrap" class="ft03">agreements should be treated pari passu with claims under other insurance policies and annuities,</p> <p style="position:absolute;top:583px;left:108px;white-space:nowrap" class="ft05">supporting the pass-through of FLIC’s A3 IFS rating.<br/>The trust may issue notes in US dollars and other currencies to third party investors in both US and</p> <p style="position:absolute;top:633px;left:108px;white-space:nowrap" class="ft03">foreign capital markets. The rating agency noted that it intends to rate subsequent draw-downs</p> <p style="position:absolute;top:652px;left:108px;white-space:nowrap" class="ft03">under the program individually, since the terms of the program's individual notes may affect their</p> <p style="position:absolute;top:672px;left:108px;white-space:nowrap" class="ft05">credit characteristics and rating.<br/>Moody’s noted the company’s improving business profile, reflecting its growing and increasingly</p> <p style="position:absolute;top:722px;left:108px;white-space:nowrap" class="ft03">diversified footprint in the life insurance industry. Global Atlantic's success in its retail insurance</p> <p style="position:absolute;top:741px;left:108px;white-space:nowrap" class="ft03">platform, which includes annuities, preneed, and life insurance, is augmented by its strong</p> <p style="position:absolute;top:761px;left:108px;white-space:nowrap" class="ft03">institutional business, including block, flow and pension risk transfer reinsurance. Moody’s expects</p> <p style="position:absolute;top:780px;left:108px;white-space:nowrap" class="ft03">that Global Atlantic will maintain its strict focus on profitability and continue to generate consistently</p> <p style="position:absolute;top:800px;left:108px;white-space:nowrap" class="ft03">strong returns on capital (ROC) while maintaining good capital levels through the coronavirus</p> <p style="position:absolute;top:819px;left:108px;white-space:nowrap" class="ft03">pandemic. The rating agency noted that the company's strengths are tempered by the rapid</p> <p style="position:absolute;top:839px;left:108px;white-space:nowrap" class="ft03">expansion of the annuity business, investment risk, as well as disintermediation risk and related ALM</p> <p style="position:absolute;top:858px;left:108px;white-space:nowrap" class="ft05">complexities.<br/>The positive outlook reflects Moody’s view that the upcoming transaction with KKR &amp; Co. Inc. will</p> <p style="position:absolute;top:908px;left:108px;white-space:nowrap" class="ft03">provide Global Atlantic access to capital and improve the company’s business profile over the</p> <p style="position:absolute;top:927px;left:108px;white-space:nowrap" class="ft03">long term. It also reflects Global Atlantic’s consistent profitability and improvement in its market</p> <p style="position:absolute;top:947px;left:108px;white-space:nowrap" class="ft03">position achieved growing its distribution reach through both its retail and institutional channels. The</p> <p style="position:absolute;top:966px;left:108px;white-space:nowrap" class="ft03">company has also become less reliant on bank financing and demonstrated increased access to</p> <p style="position:absolute;top:986px;left:108px;white-space:nowrap" class="ft05">capital markets.<br/>Moody’s believes that the coronavirus-driven economic downturn and ultra-low interest rates will</p> <p style="position:absolute;top:1036px;left:108px;white-space:nowrap" class="ft03">stress most aspects of life insurers' financials, including those of Global Atlantic. This includes sales,</p> </div> <!-- Page 2 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft06{font-size:13px;font-family:Times;color:#1b62b7;} --> </style> <div id="page2-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032002.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft03">investment income, reserves and capital adequacy. Most life insurers, including Global Atlantic, start</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft03">with healthy capital and asset quality to weather this storm over the near term, but these conditions</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft05">will weaken their creditworthiness if they persist.<br/>FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS<br/>The rating on GA Global Funding Trust’s FABN program is dependent on Global Atlantic’s IFS rating.<br/>The following could result in an upgrade of Global Atlantic’s ratings: 1) successful execution of</p> <p style="position:absolute;top:263px;left:108px;white-space:nowrap" class="ft03">transaction and realization of potential revenue synergies; 2) no material changes to the company's</p> <p style="position:absolute;top:282px;left:108px;white-space:nowrap" class="ft03">business strategy or risk profile; 3) NAIC company action level (CAL) risk based capital (RBC) ratio</p> <p style="position:absolute;top:302px;left:108px;white-space:nowrap" class="ft03">consistently remains above 400%, after adjusting for captive reinsurers; and 4) profitable premium</p> <p style="position:absolute;top:321px;left:108px;white-space:nowrap" class="ft05">growth is maintained and well balanced between life insurance and annuities.<br/>Given Global Atlantic has a positive outlook, a downgrade is unlikely. However, the following could</p> <p style="position:absolute;top:371px;left:108px;white-space:nowrap" class="ft03">result in the outlook returning to stable from positive: 1) transaction is unsuccessful or revenue</p> <p style="position:absolute;top:391px;left:108px;white-space:nowrap" class="ft03">synergies do not materialize; 2) increased risk profile or growth appetite, including another material</p> <p style="position:absolute;top:410px;left:108px;white-space:nowrap" class="ft03">acquisition; 3) reduced profitability of Global Atlantic with ROC falling below 10% (consolidated</p> <p style="position:absolute;top:430px;left:108px;white-space:nowrap" class="ft03">GAAP); 4) a decline in the NAIC CAL RBC ratio to below 400%; or 5) adjusted financial leverage</p> <p style="position:absolute;top:449px;left:108px;white-space:nowrap" class="ft05">consistently above 25% (consolidated GAAP).<br/>The following rating was assigned with a positive outlook:<br/>GA Global Funding Trust – senior secured MTN rating at (P)A3.<br/>The principal methodology used in this rating was Life Insurers Methodology published</p> <p style="position:absolute;top:560px;left:108px;white-space:nowrap" class="ft03">inNovember 2019 and available at&#160;</p> <p style="position:absolute;top:560px;left:351px;white-space:nowrap" class="ft06">https://www.moodys.com/researchdocumentcontentpage.aspx?</p> <p style="position:absolute;top:579px;left:108px;white-space:nowrap" class="ft06">docid=PBC_1187348</p> <p style="position:absolute;top:579px;left:256px;white-space:nowrap" class="ft03">. Alternatively, please see the Rating Methodologies page on www.moodys.com</p> <p style="position:absolute;top:599px;left:108px;white-space:nowrap" class="ft05">for a copy of this methodology.<br/>Commonwealth Annuity and Life Insurance Company, the primary life operating company of</p> <p style="position:absolute;top:648px;left:108px;white-space:nowrap" class="ft03">Global Atlantic, reported statutory net income of $14 million for the first nine months of 2020. As of</p> <p style="position:absolute;top:668px;left:108px;white-space:nowrap" class="ft03">September 30, 2020, Commonwealth Annuity and Life Insurance Company reported capital and</p> <p style="position:absolute;top:687px;left:108px;white-space:nowrap" class="ft03">surplus of $3.0 billion and statutory assets of $28.1 billion.</p> <p style="position:absolute;top:729px;left:108px;white-space:nowrap" class="ft04">REGULATORY DISCLOSURES<br/>For further specification of Moody’s key rating assumptions and sensitivity analysis, see</p> <p style="position:absolute;top:780px;left:108px;white-space:nowrap" class="ft03">the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure</p> <p style="position:absolute;top:799px;left:108px;white-space:nowrap" class="ft03">form. Moody’s Rating Symbols and Definitions can be found at:&#160;</p> <p style="position:absolute;top:799px;left:551px;white-space:nowrap" class="ft06">https://www.moodys.com/</p> <p style="position:absolute;top:819px;left:108px;white-space:nowrap" class="ft06">researchdocumentcontentpage.aspx?docid=PBC_79004</p> <p style="position:absolute;top:819px;left:503px;white-space:nowrap" class="ft03">.</p> <p style="position:absolute;top:849px;left:108px;white-space:nowrap" class="ft03">For ratings issued on a program, series, category/class of debt or security this announcement</p> <p style="position:absolute;top:869px;left:108px;white-space:nowrap" class="ft03">provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or</p> <p style="position:absolute;top:888px;left:108px;white-space:nowrap" class="ft03">note of the same series, category/class of debt, security or pursuant to a program for which the</p> <p style="position:absolute;top:908px;left:108px;white-space:nowrap" class="ft03">ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.</p> <p style="position:absolute;top:927px;left:108px;white-space:nowrap" class="ft03">For ratings issued on a support provider, this announcement provides certain regulatory disclosures</p> <p style="position:absolute;top:947px;left:108px;white-space:nowrap" class="ft03">in relation to the credit rating action on the support provider and in relation to each particular credit</p> <p style="position:absolute;top:966px;left:108px;white-space:nowrap" class="ft03">rating action for securities that derive their credit ratings from the support provider's credit rating.</p> <p style="position:absolute;top:986px;left:108px;white-space:nowrap" class="ft03">For provisional ratings, this announcement provides certain regulatory disclosures in relation to the</p> <p style="position:absolute;top:1005px;left:108px;white-space:nowrap" class="ft03">provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent</p> <p style="position:absolute;top:1025px;left:108px;white-space:nowrap" class="ft03">to the final issuance of the debt, in each case where the transaction structure and terms have not</p> <p style="position:absolute;top:1044px;left:108px;white-space:nowrap" class="ft03">changed prior to the assignment of the definitive rating in a manner that would have affected the</p> </div> <!-- Page 3 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page3-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032003.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft03">rating. For further information please see the ratings tab on the issuer/entity page for the respective</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft05">issuer on www.moodys.com.<br/>For any affected securities or rated entities receiving direct credit support from the primary entity(ies)</p> <p style="position:absolute;top:183px;left:108px;white-space:nowrap" class="ft03">of this credit rating action, and whose ratings may change as a result of this credit rating action, the</p> <p style="position:absolute;top:202px;left:108px;white-space:nowrap" class="ft03">associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach</p> <p style="position:absolute;top:222px;left:108px;white-space:nowrap" class="ft03">exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated</p> <p style="position:absolute;top:241px;left:108px;white-space:nowrap" class="ft05">entity, Disclosure from rated entity.<br/>The rating has been disclosed to the rated entity or its designated agent(s) and issued with no</p> <p style="position:absolute;top:291px;left:108px;white-space:nowrap" class="ft05">amendment resulting from that disclosure.<br/>This rating is solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited</p> <p style="position:absolute;top:341px;left:108px;white-space:nowrap" class="ft05">Credit Ratings available on its website www.moodys.com.<br/>Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the</p> <p style="position:absolute;top:391px;left:108px;white-space:nowrap" class="ft05">related rating outlook or rating review.<br/>Moody’s general principles for assessing environmental, social and governance (ESG) risks in our</p> <p style="position:absolute;top:441px;left:108px;white-space:nowrap" class="ft03">credit analysis can be found at&#160;</p> <p style="position:absolute;top:441px;left:325px;white-space:nowrap" class="ft06">https://www.moodys.com/researchdocumentcontentpage.aspx?</p> <p style="position:absolute;top:460px;left:108px;white-space:nowrap" class="ft06">docid=PBC_1243406</p> <p style="position:absolute;top:460px;left:257px;white-space:nowrap" class="ft03">.</p> <p style="position:absolute;top:490px;left:108px;white-space:nowrap" class="ft03">The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s</p> <p style="position:absolute;top:510px;left:108px;white-space:nowrap" class="ft03">affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt</p> <p style="position:absolute;top:529px;left:108px;white-space:nowrap" class="ft03">am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No</p> <p style="position:absolute;top:549px;left:108px;white-space:nowrap" class="ft03">1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the</p> <p style="position:absolute;top:568px;left:108px;white-space:nowrap" class="ft05">Moody’s office that issued the credit rating is available on www.moodys.com.<br/>The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s</p> <p style="position:absolute;top:618px;left:108px;white-space:nowrap" class="ft03">affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada</p> <p style="position:absolute;top:638px;left:108px;white-space:nowrap" class="ft03">Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK.</p> <p style="position:absolute;top:657px;left:108px;white-space:nowrap" class="ft03">Further information on the UK endorsement status and on the Moody’s office that issued the credit</p> <p style="position:absolute;top:677px;left:108px;white-space:nowrap" class="ft05">rating is available on www.moodys.com.<br/>Please see www.moodys.com for any updates on changes to the lead rating analyst and to the</p> <p style="position:absolute;top:726px;left:108px;white-space:nowrap" class="ft05">Moody's legal entity that has issued the rating.<br/>Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory</p> <p style="position:absolute;top:776px;left:108px;white-space:nowrap" class="ft05">disclosures for each credit rating.<br/>Michael Fruchter, CFA</p> <p style="position:absolute;top:826px;left:108px;white-space:nowrap" class="ft03">VP-Sr Credit Officer</p> <p style="position:absolute;top:846px;left:108px;white-space:nowrap" class="ft03">Financial Institutions Group</p> <p style="position:absolute;top:865px;left:108px;white-space:nowrap" class="ft03">Moody's Investors Service, Inc.</p> <p style="position:absolute;top:885px;left:108px;white-space:nowrap" class="ft03">250 Greenwich Street</p> <p style="position:absolute;top:904px;left:108px;white-space:nowrap" class="ft03">New York, NY 10007</p> <p style="position:absolute;top:924px;left:108px;white-space:nowrap" class="ft03">U.S.A.</p> <p style="position:absolute;top:943px;left:108px;white-space:nowrap" class="ft03">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:963px;left:108px;white-space:nowrap" class="ft05">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo><br/>Scott Robinson, CFA</p> <p style="position:absolute;top:1012px;left:108px;white-space:nowrap" class="ft03">Associate Managing Director</p> <p style="position:absolute;top:1032px;left:108px;white-space:nowrap" class="ft03">Financial Institutions Group</p> </div> <!-- Page 4 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft07{font-size:13px;font-family:Times;color:#0d0c0c;} .ft08{font-size:13px;line-height:22px;font-family:Times;color:#0d0c0c;} .ft09{font-size:13px;line-height:23px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page4-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032004.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft03">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft05">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo><br/>Releasing Office:</p> <p style="position:absolute;top:183px;left:108px;white-space:nowrap" class="ft03">Moody's Investors Service, Inc.</p> <p style="position:absolute;top:202px;left:108px;white-space:nowrap" class="ft03">250 Greenwich Street</p> <p style="position:absolute;top:222px;left:108px;white-space:nowrap" class="ft03">New York, NY 10007</p> <p style="position:absolute;top:241px;left:108px;white-space:nowrap" class="ft03">U.S.A.</p> <p style="position:absolute;top:261px;left:108px;white-space:nowrap" class="ft03">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:280px;left:108px;white-space:nowrap" class="ft03">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo></p> <p style="position:absolute;top:377px;left:108px;white-space:nowrap" class="ft03">© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their</p> <p style="position:absolute;top:396px;left:108px;white-space:nowrap" class="ft08">licensors and affiliates (collectively, “MOODY’S”). All rights reserved.<br/><b>CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT</b></p> <p style="position:absolute;top:438px;left:108px;white-space:nowrap" class="ft07"><b>OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS,</b></p> <p style="position:absolute;top:458px;left:108px;white-space:nowrap" class="ft07"><b>OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND</b></p> <p style="position:absolute;top:477px;left:108px;white-space:nowrap" class="ft07"><b>INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE</b></p> <p style="position:absolute;top:497px;left:108px;white-space:nowrap" class="ft07"><b>SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN</b></p> <p style="position:absolute;top:516px;left:108px;white-space:nowrap" class="ft07"><b>ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME</b></p> <p style="position:absolute;top:536px;left:108px;white-space:nowrap" class="ft07"><b>DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT.</b></p> <p style="position:absolute;top:555px;left:108px;white-space:nowrap" class="ft07"><b>SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR</b></p> <p style="position:absolute;top:575px;left:108px;white-space:nowrap" class="ft07"><b>INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED</b></p> <p style="position:absolute;top:594px;left:108px;white-space:nowrap" class="ft07"><b>BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK,</b></p> <p style="position:absolute;top:614px;left:108px;white-space:nowrap" class="ft07"><b>INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE</b></p> <p style="position:absolute;top:633px;left:108px;white-space:nowrap" class="ft07"><b>VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND</b></p> <p style="position:absolute;top:653px;left:108px;white-space:nowrap" class="ft07"><b>OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS</b></p> <p style="position:absolute;top:672px;left:108px;white-space:nowrap" class="ft07"><b>OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE</b></p> <p style="position:absolute;top:692px;left:108px;white-space:nowrap" class="ft07"><b>QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS</b></p> <p style="position:absolute;top:711px;left:108px;white-space:nowrap" class="ft07"><b>OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES.</b></p> <p style="position:absolute;top:731px;left:108px;white-space:nowrap" class="ft07"><b>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO</b></p> <p style="position:absolute;top:750px;left:108px;white-space:nowrap" class="ft07"><b>NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S</b></p> <p style="position:absolute;top:770px;left:108px;white-space:nowrap" class="ft07"><b>CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND</b></p> <p style="position:absolute;top:789px;left:108px;white-space:nowrap" class="ft07"><b>DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR</b></p> <p style="position:absolute;top:809px;left:108px;white-space:nowrap" class="ft07"><b>SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND</b></p> <p style="position:absolute;top:828px;left:108px;white-space:nowrap" class="ft07"><b>PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY</b></p> <p style="position:absolute;top:848px;left:108px;white-space:nowrap" class="ft07"><b>PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND</b></p> <p style="position:absolute;top:867px;left:108px;white-space:nowrap" class="ft07"><b>OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND</b></p> <p style="position:absolute;top:887px;left:108px;white-space:nowrap" class="ft07"><b>UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY</b></p> <p style="position:absolute;top:906px;left:108px;white-space:nowrap" class="ft07"><b>AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE,</b></p> <p style="position:absolute;top:926px;left:108px;white-space:nowrap" class="ft09"><b>HOLDING, OR SALE.<br/></b>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS</p> <p style="position:absolute;top:969px;left:108px;white-space:nowrap" class="ft03">ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS</p> <p style="position:absolute;top:988px;left:108px;white-space:nowrap" class="ft03">AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS,</p> <p style="position:absolute;top:1008px;left:108px;white-space:nowrap" class="ft03">ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT</p> <p style="position:absolute;top:1027px;left:108px;white-space:nowrap" class="ft03">DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER</p> <p style="position:absolute;top:1047px;left:108px;white-space:nowrap" class="ft03">PROFESSIONAL ADVISER.</p> </div> <!-- Page 5 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft010{font-size:13px;line-height:23px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page5-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032005.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft03">ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft03">LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft03">OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft03">DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR</p> <p style="position:absolute;top:192px;left:108px;white-space:nowrap" class="ft03">ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY</p> <p style="position:absolute;top:211px;left:108px;white-space:nowrap" class="ft010">MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.<br/>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft03">NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft03">FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft010">IN THEM BEING CONSIDERED A BENCHMARK.<br/>All information contained herein is obtained by MOODY’S from sources believed by it to be</p> <p style="position:absolute;top:335px;left:108px;white-space:nowrap" class="ft03">accurate and reliable. Because of the possibility of human or mechanical error as well as other</p> <p style="position:absolute;top:355px;left:108px;white-space:nowrap" class="ft03">factors, however, all information contained herein is provided “AS IS” without warranty of any kind.</p> <p style="position:absolute;top:374px;left:108px;white-space:nowrap" class="ft03">MOODY'S adopts all necessary measures so that the information it uses in assigning a credit</p> <p style="position:absolute;top:394px;left:108px;white-space:nowrap" class="ft03">rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when</p> <p style="position:absolute;top:413px;left:108px;white-space:nowrap" class="ft03">appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot</p> <p style="position:absolute;top:433px;left:108px;white-space:nowrap" class="ft03">in every instance independently verify or validate information received in the rating process or in</p> <p style="position:absolute;top:452px;left:108px;white-space:nowrap" class="ft010">preparing its Publications.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:495px;left:108px;white-space:nowrap" class="ft03">representatives, licensors and suppliers disclaim liability to any person or entity for any indirect,</p> <p style="position:absolute;top:514px;left:108px;white-space:nowrap" class="ft03">special, consequential, or incidental losses or damages whatsoever arising from or in connection</p> <p style="position:absolute;top:534px;left:108px;white-space:nowrap" class="ft03">with the information contained herein or the use of or inability to use any such information, even if</p> <p style="position:absolute;top:553px;left:108px;white-space:nowrap" class="ft03">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers</p> <p style="position:absolute;top:573px;left:108px;white-space:nowrap" class="ft03">is advised in advance of the possibility of such losses or damages, including but not limited to:</p> <p style="position:absolute;top:592px;left:108px;white-space:nowrap" class="ft03">(a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant</p> <p style="position:absolute;top:612px;left:108px;white-space:nowrap" class="ft010">financial instrument is not the subject of a particular credit rating assigned by MOODY’S.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:654px;left:108px;white-space:nowrap" class="ft03">representatives, licensors and suppliers disclaim liability for any direct or compensatory losses</p> <p style="position:absolute;top:674px;left:108px;white-space:nowrap" class="ft03">or damages caused to any person or entity, including but not limited to by any negligence (but</p> <p style="position:absolute;top:693px;left:108px;white-space:nowrap" class="ft03">excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt,</p> <p style="position:absolute;top:713px;left:108px;white-space:nowrap" class="ft03">by law cannot be excluded) on the part of, or any contingency within or beyond the control of,</p> <p style="position:absolute;top:732px;left:108px;white-space:nowrap" class="ft03">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,</p> <p style="position:absolute;top:752px;left:108px;white-space:nowrap" class="ft03">arising from or in connection with the information contained herein or the use of or inability to use</p> <p style="position:absolute;top:771px;left:108px;white-space:nowrap" class="ft010">any such information.<br/>NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS,</p> <p style="position:absolute;top:814px;left:108px;white-space:nowrap" class="ft03">COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF</p> <p style="position:absolute;top:833px;left:108px;white-space:nowrap" class="ft03">ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE</p> <p style="position:absolute;top:853px;left:108px;white-space:nowrap" class="ft010">BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.<br/>Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s</p> <p style="position:absolute;top:895px;left:108px;white-space:nowrap" class="ft03">Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and</p> <p style="position:absolute;top:915px;left:108px;white-space:nowrap" class="ft03">municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s</p> <p style="position:absolute;top:934px;left:108px;white-space:nowrap" class="ft03">Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s</p> <p style="position:absolute;top:954px;left:108px;white-space:nowrap" class="ft03">Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from</p> <p style="position:absolute;top:973px;left:108px;white-space:nowrap" class="ft03">$1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies</p> <p style="position:absolute;top:993px;left:108px;white-space:nowrap" class="ft03">and procedures to address the independence of Moody’s Investors Service credit ratings and credit</p> <p style="position:absolute;top:1012px;left:108px;white-space:nowrap" class="ft03">rating processes. Information regarding certain affiliations that may exist between directors of MCO</p> <p style="position:absolute;top:1032px;left:108px;white-space:nowrap" class="ft03">and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and</p> </div> <!-- Page 6 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page6-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004032006.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft03">have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft03">annually at&#160;</p> <p style="position:absolute;top:133px;left:188px;white-space:nowrap" class="ft06">www.moodys.com</p> <p style="position:absolute;top:133px;left:315px;white-space:nowrap" class="ft03">&#160;under the heading “Investor Relations — Corporate Governance —</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft010">Director and Shareholder Affiliation Policy.”<br/>Additional terms for Australia only: Any publication into Australia of this document is pursuant to the</p> <p style="position:absolute;top:195px;left:108px;white-space:nowrap" class="ft03">Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited</p> <p style="position:absolute;top:215px;left:108px;white-space:nowrap" class="ft03">ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft03">972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft03">clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft03">this document from within Australia, you represent to MOODY’S that you are, or are accessing</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft03">the document as a representative of, a “wholesale client” and that neither you nor the entity you</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft03">represent will directly or indirectly disseminate this document or its contents to “retail clients” within</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft03">the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as</p> <p style="position:absolute;top:351px;left:108px;white-space:nowrap" class="ft03">to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or</p> <p style="position:absolute;top:371px;left:108px;white-space:nowrap" class="ft010">any form of security that is available to retail investors.<br/>Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency</p> <p style="position:absolute;top:413px;left:108px;white-space:nowrap" class="ft03">subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc.,</p> <p style="position:absolute;top:433px;left:108px;white-space:nowrap" class="ft03">a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating</p> <p style="position:absolute;top:452px;left:108px;white-space:nowrap" class="ft03">agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization</p> <p style="position:absolute;top:472px;left:108px;white-space:nowrap" class="ft03">(“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-</p> <p style="position:absolute;top:491px;left:108px;white-space:nowrap" class="ft03">NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated</p> <p style="position:absolute;top:511px;left:108px;white-space:nowrap" class="ft03">obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit</p> <p style="position:absolute;top:530px;left:108px;white-space:nowrap" class="ft03">rating agencies registered with the Japan Financial Services Agency and their registration numbers</p> <p style="position:absolute;top:550px;left:108px;white-space:nowrap" class="ft010">are FSA Commissioner (Ratings) No. 2 and 3 respectively.<br/>MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including</p> <p style="position:absolute;top:592px;left:108px;white-space:nowrap" class="ft03">corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated</p> <p style="position:absolute;top:612px;left:108px;white-space:nowrap" class="ft03">by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to</p> <p style="position:absolute;top:631px;left:108px;white-space:nowrap" class="ft03">MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging</p> <p style="position:absolute;top:651px;left:108px;white-space:nowrap" class="ft010">from JPY125,000 to approximately JPY550,000,000.<br/>MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory</p> <p style="position:absolute;top:693px;left:108px;white-space:nowrap" class="ft03">requirements.</p> </div> </body> </html>