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Hub International Limited -- Moody’s rates Hub International’s repriced senior secured term loan B2

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>/nwsys/www/images/PR_1000004120</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="date" content="2021-01-14T15:36:33+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:#000000;} .ft04{font-size:13px;font-family:Times;color:#0d0c0c;} .ft05{font-size:13px;line-height:31px;font-family:Times;color:#0d0c0c;} .ft06{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_1000004120001.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 Hub International’s repriced senior</b></p> <p style="position:absolute;top:187px;left:108px;white-space:nowrap" class="ft01"><b>secured term loan B2</b></p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02"><b>14 January 2021</b></p> <p style="position:absolute;top:261px;left:108px;white-space:nowrap" class="ft03"><b>Company repricing $1.5 billion senior secured term loan, total credit facilities and notes</b></p> <p style="position:absolute;top:279px;left:108px;white-space:nowrap" class="ft03"><b>approximately $7 billion</b></p> <p style="position:absolute;top:303px;left:108px;white-space:nowrap" class="ft04">New York, January 14, 2021 – Moody’s Investors Service has assigned a B2 rating to Hub</p> <p style="position:absolute;top:323px;left:108px;white-space:nowrap" class="ft04">International Limited’s (corporate family rating B3, together with its subsidiaries, Hub) $1.5 billion</p> <p style="position:absolute;top:342px;left:108px;white-space:nowrap" class="ft05">repriced senior secured term loan due April 2025. The rating outlook for Hub is unchanged at stable.<br/>RATINGS RATIONALE<br/>Hub's B3 corporate family rating reflects its solid market position in North American insurance</p> <p style="position:absolute;top:424px;left:108px;white-space:nowrap" class="ft04">brokerage, good diversification across products and geographic areas in the US and Canada, and</p> <p style="position:absolute;top:443px;left:108px;white-space:nowrap" class="ft04">consistently strong EBITDA margins. Hub has generated good organic growth averaging in the low-</p> <p style="position:absolute;top:463px;left:108px;white-space:nowrap" class="ft04">single digits and has achieved strong EBITDA margins in the low 30s (per Moody's calculations)</p> <p style="position:absolute;top:482px;left:108px;white-space:nowrap" class="ft04">over the past few years. These strengths are tempered by the company's high financial leverage</p> <p style="position:absolute;top:502px;left:108px;white-space:nowrap" class="ft04">and limited fixed charge coverage. The company also faces potential liabilities from errors and</p> <p style="position:absolute;top:521px;left:108px;white-space:nowrap" class="ft04">omissions, a risk inherent in professional services. Hub has grown through acquisitions, which gives</p> <p style="position:absolute;top:541px;left:108px;white-space:nowrap" class="ft04">rise to integration risk, although the company has a favorable track record in absorbing small and</p> <p style="position:absolute;top:560px;left:108px;white-space:nowrap" class="ft06">mid-sized brokers.<br/>Hub has performed relatively well through the coronavirus-related slowdown, achieving organic</p> <p style="position:absolute;top:610px;left:108px;white-space:nowrap" class="ft04">revenue growth in the low single digits during the third quarter, as well as through the last 12 months</p> <p style="position:absolute;top:630px;left:108px;white-space:nowrap" class="ft04">ending September 2020. EBITDA margins have also slightly improved largely due to expense</p> <p style="position:absolute;top:649px;left:108px;white-space:nowrap" class="ft06">savings.<br/>Moody's estimates that Hub's pro forma debt-to-EBITDA ratio is between 7.5-8.0x, with (EBITDA</p> <p style="position:absolute;top:699px;left:108px;white-space:nowrap" class="ft04">- capex) interest coverage above 2x, and a free-cash-flow-to-debt ratio in the mid-single digits.</p> <p style="position:absolute;top:719px;left:108px;white-space:nowrap" class="ft04">These metrics incorporate Moody's accounting adjustments for operating leases, deferred earnout</p> <p style="position:absolute;top:738px;left:108px;white-space:nowrap" class="ft06">obligations and run-rate earnings from completed acquisitions.<br/>FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS<br/>Factors that could lead to an upgrade of Hub's ratings include: (i) debt-to-EBITDA ratio below 7.0x,</p> <p style="position:absolute;top:818px;left:108px;white-space:nowrap" class="ft04">(ii) (EBITDA - capex) coverage of interest consistently exceeding 2x, and (iii) free-cash-flow-to-debt</p> <p style="position:absolute;top:838px;left:108px;white-space:nowrap" class="ft06">ratio exceeding 5%.<br/>Factors that could lead to a rating downgrade include: (i) debt-to-EBITDA ratio above 8x, (ii)</p> <p style="position:absolute;top:887px;left:108px;white-space:nowrap" class="ft06">(EBITDA - capex) coverage of interest below 1.2x, or (iii) free-cash-flow-to-debt ratio below 2%.<br/>Moody's has assigned the following rating (and loss given default (LGD) assessment):<br/>$1.5 billion senior secured term loan maturing in April 2025 at B2 (LGD3).<br/>When the transaction closes, Moody’s will withdraw the rating from Hub’s existing senior secured</p> <p style="position:absolute;top:998px;left:108px;white-space:nowrap" class="ft06">term loan maturing in April 2025.<br/>The rating outlook for Hub is unchanged at stable.</p> </div> <!-- Page 2 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft07{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_1000004120002.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft04">The principal methodology used in this rating was Insurance Brokers and Service</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft04">Companies published in June 2018 and available at&#160;</p> <p style="position:absolute;top:133px;left:473px;white-space:nowrap" class="ft07">https://www.moodys.com/</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft07">researchdocumentcontentpage.aspx?docid=PBC_1121967</p> <p style="position:absolute;top:153px;left:520px;white-space:nowrap" class="ft04">&#160;. Alternatively, please see the Rating</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft06">Methodologies page on www.moodys.com for a copy of this methodology.<br/>Based in Chicago, Hub ranks among the top ten of North American insurance brokers, providing</p> <p style="position:absolute;top:222px;left:108px;white-space:nowrap" class="ft04">property and casualty, life and health, employee benefits, investment and risk management products</p> <p style="position:absolute;top:241px;left:108px;white-space:nowrap" class="ft04">and services through offices located in the US, Canada and Puerto Rico. The company generated</p> <p style="position:absolute;top:261px;left:108px;white-space:nowrap" class="ft05">total adjusted revenue of $2.6 billion in the 12 months through September 2020.<br/>REGULATORY DISCLOSURES<br/>For further specification of Moody’s key rating assumptions and sensitivity analysis, see</p> <p style="position:absolute;top:342px;left:108px;white-space:nowrap" class="ft04">the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure</p> <p style="position:absolute;top:362px;left:108px;white-space:nowrap" class="ft04">form. Moody’s Rating Symbols and Definitions can be found at:&#160;</p> <p style="position:absolute;top:362px;left:551px;white-space:nowrap" class="ft07">https://www.moodys.com/</p> <p style="position:absolute;top:381px;left:108px;white-space:nowrap" class="ft07">researchdocumentcontentpage.aspx?docid=PBC_79004</p> <p style="position:absolute;top:381px;left:503px;white-space:nowrap" class="ft04">.</p> <p style="position:absolute;top:412px;left:108px;white-space:nowrap" class="ft04">For ratings issued on a program, series, category/class of debt or security this announcement</p> <p style="position:absolute;top:431px;left:108px;white-space:nowrap" class="ft04">provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or</p> <p style="position:absolute;top:451px;left:108px;white-space:nowrap" class="ft04">note of the same series, category/class of debt, security or pursuant to a program for which the</p> <p style="position:absolute;top:470px;left:108px;white-space:nowrap" class="ft04">ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.</p> <p style="position:absolute;top:490px;left:108px;white-space:nowrap" class="ft04">For ratings issued on a support provider, this announcement provides certain regulatory disclosures</p> <p style="position:absolute;top:509px;left:108px;white-space:nowrap" class="ft04">in relation to the credit rating action on the support provider and in relation to each particular credit</p> <p style="position:absolute;top:529px;left:108px;white-space:nowrap" class="ft04">rating action for securities that derive their credit ratings from the support provider's credit rating.</p> <p style="position:absolute;top:548px;left:108px;white-space:nowrap" class="ft04">For provisional ratings, this announcement provides certain regulatory disclosures in relation to the</p> <p style="position:absolute;top:568px;left:108px;white-space:nowrap" class="ft04">provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent</p> <p style="position:absolute;top:587px;left:108px;white-space:nowrap" class="ft04">to the final issuance of the debt, in each case where the transaction structure and terms have not</p> <p style="position:absolute;top:607px;left:108px;white-space:nowrap" class="ft04">changed prior to the assignment of the definitive rating in a manner that would have affected the</p> <p style="position:absolute;top:626px;left:108px;white-space:nowrap" class="ft04">rating. For further information please see the ratings tab on the issuer/entity page for the respective</p> <p style="position:absolute;top:646px;left:108px;white-space:nowrap" class="ft06">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:696px;left:108px;white-space:nowrap" class="ft04">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:715px;left:108px;white-space:nowrap" class="ft04">associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach</p> <p style="position:absolute;top:735px;left:108px;white-space:nowrap" class="ft04">exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated</p> <p style="position:absolute;top:754px;left:108px;white-space:nowrap" class="ft06">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:804px;left:108px;white-space:nowrap" class="ft06">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:854px;left:108px;white-space:nowrap" class="ft06">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:903px;left:108px;white-space:nowrap" class="ft06">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:953px;left:108px;white-space:nowrap" class="ft04">credit analysis can be found at&#160;</p> <p style="position:absolute;top:953px;left:325px;white-space:nowrap" class="ft07">https://www.moodys.com/researchdocumentcontentpage.aspx?</p> <p style="position:absolute;top:973px;left:108px;white-space:nowrap" class="ft07">docid=PBC_1243406</p> <p style="position:absolute;top:973px;left:257px;white-space:nowrap" class="ft04">.</p> <p style="position:absolute;top:1003px;left:108px;white-space:nowrap" class="ft04">The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s</p> <p style="position:absolute;top:1023px;left:108px;white-space:nowrap" class="ft04">affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt</p> <p style="position:absolute;top:1042px;left:108px;white-space:nowrap" class="ft04">am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No</p> </div> <!-- Page 3 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft08{font-size:13px;font-family:Times;color:#0d0c0c;} .ft09{font-size:13px;line-height:22px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page3-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004120003.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft04">1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft06">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:183px;left:108px;white-space:nowrap" class="ft04">affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada</p> <p style="position:absolute;top:202px;left:108px;white-space:nowrap" class="ft04">Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK.</p> <p style="position:absolute;top:222px;left:108px;white-space:nowrap" class="ft04">Further information on the UK endorsement status and on the Moody’s office that issued the credit</p> <p style="position:absolute;top:241px;left:108px;white-space:nowrap" class="ft06">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:291px;left:108px;white-space:nowrap" class="ft06">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:341px;left:108px;white-space:nowrap" class="ft06">disclosures for each credit rating.<br/>Michael Dion, CFA</p> <p style="position:absolute;top:391px;left:108px;white-space:nowrap" class="ft04">VP-Senior Analyst</p> <p style="position:absolute;top:410px;left:108px;white-space:nowrap" class="ft04">Financial Institutions Group</p> <p style="position:absolute;top:430px;left:108px;white-space:nowrap" class="ft04">Moody's Investors Service, Inc.</p> <p style="position:absolute;top:449px;left:108px;white-space:nowrap" class="ft04">250 Greenwich Street</p> <p style="position:absolute;top:469px;left:108px;white-space:nowrap" class="ft04">New York, NY 10007</p> <p style="position:absolute;top:488px;left:108px;white-space:nowrap" class="ft04">U.S.A.</p> <p style="position:absolute;top:508px;left:108px;white-space:nowrap" class="ft04">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:527px;left:108px;white-space:nowrap" class="ft06">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo><br/>Sarah Hibler</p> <p style="position:absolute;top:577px;left:108px;white-space:nowrap" class="ft04">Associate Managing Director</p> <p style="position:absolute;top:597px;left:108px;white-space:nowrap" class="ft04">Financial Institutions Group</p> <p style="position:absolute;top:616px;left:108px;white-space:nowrap" class="ft04">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:636px;left:108px;white-space:nowrap" class="ft06">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo><br/>Releasing Office:</p> <p style="position:absolute;top:685px;left:108px;white-space:nowrap" class="ft04">Moody's Investors Service, Inc.</p> <p style="position:absolute;top:705px;left:108px;white-space:nowrap" class="ft04">250 Greenwich Street</p> <p style="position:absolute;top:724px;left:108px;white-space:nowrap" class="ft04">New York, NY 10007</p> <p style="position:absolute;top:744px;left:108px;white-space:nowrap" class="ft04">U.S.A.</p> <p style="position:absolute;top:763px;left:108px;white-space:nowrap" class="ft04">JOURNALISTS: 1 <PhoneNo>212 553 0376</PhoneNo></p> <p style="position:absolute;top:783px;left:108px;white-space:nowrap" class="ft04">Client Service: 1 <PhoneNo>212 553 1653</PhoneNo></p> <p style="position:absolute;top:879px;left:108px;white-space:nowrap" class="ft04">© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their</p> <p style="position:absolute;top:899px;left:108px;white-space:nowrap" class="ft09">licensors and affiliates (collectively, “MOODY’S”). 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AND/OR ITS AFFILIATES.</b></p> <p style="position:absolute;top:289px;left:108px;white-space:nowrap" class="ft08"><b>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO</b></p> <p style="position:absolute;top:308px;left:108px;white-space:nowrap" class="ft08"><b>NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S</b></p> <p style="position:absolute;top:328px;left:108px;white-space:nowrap" class="ft08"><b>CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND</b></p> <p style="position:absolute;top:347px;left:108px;white-space:nowrap" class="ft08"><b>DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR</b></p> <p style="position:absolute;top:367px;left:108px;white-space:nowrap" class="ft08"><b>SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND</b></p> <p style="position:absolute;top:386px;left:108px;white-space:nowrap" class="ft08"><b>PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY</b></p> <p style="position:absolute;top:406px;left:108px;white-space:nowrap" class="ft08"><b>PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND</b></p> <p style="position:absolute;top:425px;left:108px;white-space:nowrap" class="ft08"><b>OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND</b></p> <p style="position:absolute;top:445px;left:108px;white-space:nowrap" class="ft08"><b>UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY</b></p> <p style="position:absolute;top:464px;left:108px;white-space:nowrap" class="ft08"><b>AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE,</b></p> <p style="position:absolute;top:484px;left:108px;white-space:nowrap" class="ft010"><b>HOLDING, OR SALE.<br/></b>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS</p> <p style="position:absolute;top:527px;left:108px;white-space:nowrap" class="ft04">ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS</p> <p style="position:absolute;top:546px;left:108px;white-space:nowrap" class="ft04">AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS,</p> <p style="position:absolute;top:566px;left:108px;white-space:nowrap" class="ft04">ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT</p> <p style="position:absolute;top:585px;left:108px;white-space:nowrap" class="ft04">DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER</p> <p style="position:absolute;top:605px;left:108px;white-space:nowrap" class="ft011">PROFESSIONAL ADVISER.<br/>ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT</p> <p style="position:absolute;top:647px;left:108px;white-space:nowrap" class="ft04">LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR</p> <p style="position:absolute;top:667px;left:108px;white-space:nowrap" class="ft04">OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED,</p> <p style="position:absolute;top:686px;left:108px;white-space:nowrap" class="ft04">DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR</p> <p style="position:absolute;top:706px;left:108px;white-space:nowrap" class="ft04">ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY</p> <p style="position:absolute;top:725px;left:108px;white-space:nowrap" class="ft011">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:768px;left:108px;white-space:nowrap" class="ft04">NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED</p> <p style="position:absolute;top:787px;left:108px;white-space:nowrap" class="ft04">FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT</p> <p style="position:absolute;top:807px;left:108px;white-space:nowrap" class="ft011">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:849px;left:108px;white-space:nowrap" class="ft04">accurate and reliable. Because of the possibility of human or mechanical error as well as other</p> <p style="position:absolute;top:869px;left:108px;white-space:nowrap" class="ft04">factors, however, all information contained herein is provided “AS IS” without warranty of any kind.</p> <p style="position:absolute;top:888px;left:108px;white-space:nowrap" class="ft04">MOODY'S adopts all necessary measures so that the information it uses in assigning a credit</p> <p style="position:absolute;top:908px;left:108px;white-space:nowrap" class="ft04">rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when</p> <p style="position:absolute;top:927px;left:108px;white-space:nowrap" class="ft04">appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot</p> <p style="position:absolute;top:947px;left:108px;white-space:nowrap" class="ft04">in every instance independently verify or validate information received in the rating process or in</p> <p style="position:absolute;top:966px;left:108px;white-space:nowrap" class="ft011">preparing its Publications.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:1009px;left:108px;white-space:nowrap" class="ft04">representatives, licensors and suppliers disclaim liability to any person or entity for any indirect,</p> <p style="position:absolute;top:1028px;left:108px;white-space:nowrap" class="ft04">special, consequential, or incidental losses or damages whatsoever arising from or in connection</p> <p style="position:absolute;top:1048px;left:108px;white-space:nowrap" class="ft04">with the information contained herein or the use of or inability to use any such information, even if</p> </div> <!-- Page 5 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page5-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PR_1000004120005.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft04">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft04">is advised in advance of the possibility of such losses or damages, including but not limited to:</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft04">(a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft011">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:215px;left:108px;white-space:nowrap" class="ft04">representatives, licensors and suppliers disclaim liability for any direct or compensatory losses</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft04">or damages caused to any person or entity, including but not limited to by any negligence (but</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft04">excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt,</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft04">by law cannot be excluded) on the part of, or any contingency within or beyond the control of,</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft04">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft04">arising from or in connection with the information contained herein or the use of or inability to use</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft011">any such information.<br/>NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS,</p> <p style="position:absolute;top:374px;left:108px;white-space:nowrap" class="ft04">COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF</p> <p style="position:absolute;top:394px;left:108px;white-space:nowrap" class="ft04">ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE</p> <p style="position:absolute;top:413px;left:108px;white-space:nowrap" class="ft011">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:456px;left:108px;white-space:nowrap" class="ft04">Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and</p> <p style="position:absolute;top:475px;left:108px;white-space:nowrap" class="ft04">municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s</p> <p style="position:absolute;top:495px;left:108px;white-space:nowrap" class="ft04">Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s</p> <p style="position:absolute;top:514px;left:108px;white-space:nowrap" class="ft04">Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from</p> <p style="position:absolute;top:534px;left:108px;white-space:nowrap" class="ft04">$1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies</p> <p style="position:absolute;top:553px;left:108px;white-space:nowrap" class="ft04">and procedures to address the independence of Moody’s Investors Service credit ratings and credit</p> <p style="position:absolute;top:573px;left:108px;white-space:nowrap" class="ft04">rating processes. Information regarding certain affiliations that may exist between directors of MCO</p> <p style="position:absolute;top:592px;left:108px;white-space:nowrap" class="ft04">and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and</p> <p style="position:absolute;top:612px;left:108px;white-space:nowrap" class="ft04">have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted</p> <p style="position:absolute;top:631px;left:108px;white-space:nowrap" class="ft04">annually at&#160;</p> <p style="position:absolute;top:631px;left:188px;white-space:nowrap" class="ft07">www.moodys.com</p> <p style="position:absolute;top:631px;left:315px;white-space:nowrap" class="ft04">&#160;under the heading “Investor Relations — Corporate Governance —</p> <p style="position:absolute;top:651px;left:108px;white-space:nowrap" class="ft011">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:693px;left:108px;white-space:nowrap" class="ft04">Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited</p> <p style="position:absolute;top:713px;left:108px;white-space:nowrap" class="ft04">ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136</p> <p style="position:absolute;top:732px;left:108px;white-space:nowrap" class="ft04">972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale</p> <p style="position:absolute;top:752px;left:108px;white-space:nowrap" class="ft04">clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access</p> <p style="position:absolute;top:771px;left:108px;white-space:nowrap" class="ft04">this document from within Australia, you represent to MOODY’S that you are, or are accessing</p> <p style="position:absolute;top:791px;left:108px;white-space:nowrap" class="ft04">the document as a representative of, a “wholesale client” and that neither you nor the entity you</p> <p style="position:absolute;top:810px;left:108px;white-space:nowrap" class="ft04">represent will directly or indirectly disseminate this document or its contents to “retail clients” within</p> <p style="position:absolute;top:830px;left:108px;white-space:nowrap" class="ft04">the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as</p> <p style="position:absolute;top:849px;left:108px;white-space:nowrap" class="ft04">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:869px;left:108px;white-space:nowrap" class="ft011">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:911px;left:108px;white-space:nowrap" class="ft04">subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc.,</p> <p style="position:absolute;top:931px;left:108px;white-space:nowrap" class="ft04">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:950px;left:108px;white-space:nowrap" class="ft04">agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization</p> <p style="position:absolute;top:970px;left:108px;white-space:nowrap" class="ft04">(“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-</p> <p style="position:absolute;top:989px;left:108px;white-space:nowrap" class="ft04">NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated</p> <p style="position:absolute;top:1009px;left:108px;white-space:nowrap" class="ft04">obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit</p> <p style="position:absolute;top:1028px;left:108px;white-space:nowrap" class="ft04">rating agencies registered with the Japan Financial Services Agency and their registration numbers</p> <p style="position:absolute;top:1048px;left:108px;white-space:nowrap" class="ft04">are FSA Commissioner (Ratings) No. 2 and 3 respectively.</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_1000004120006.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft04">MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft04">corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft04">by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft04">MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging</p> <p style="position:absolute;top:192px;left:108px;white-space:nowrap" class="ft011">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:234px;left:108px;white-space:nowrap" class="ft04">requirements.</p> </div> </body> </html>

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