U.S. Markets open in 4 hrs 14 mins
  • S&P Futures

    3,442.75
    +20.00 (+0.58%)
     
  • Dow Futures

    28,232.00
    +132.00 (+0.47%)
     
  • Nasdaq Futures

    11,729.00
    +78.75 (+0.68%)
     
  • Russell 2000 Futures

    1,623.70
    +12.40 (+0.77%)
     
  • Crude Oil

    40.68
    -0.15 (-0.37%)
     
  • Gold

    1,905.40
    -6.30 (-0.33%)
     
  • Silver

    24.57
    -0.13 (-0.54%)
     
  • EUR/USD

    1.1794
    +0.0021 (+0.1769%)
     
  • 10-Yr Bond

    0.7610
    0.0000 (0.00%)
     
  • Vix

    28.57
    +1.16 (+4.23%)
     
  • GBP/USD

    1.2976
    +0.0035 (+0.2699%)
     
  • USD/JPY

    105.4990
    +0.0690 (+0.0654%)
     
  • BTC-USD

    11,737.74
    +680.73 (+6.16%)
     
  • CMC Crypto 200

    238.09
    +4.42 (+1.89%)
     
  • FTSE 100

    5,898.15
    +13.50 (+0.23%)
     
  • Nikkei 225

    23,567.04
    -104.09 (-0.44%)
     

Moody's - China fine-tunes property market policies as sales grow at double-digit rates

·23 mins read

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>/nwsys/www/images/PBC_1243255</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="date" content="2020-08-27T03:35:23+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:13px;font-family:Times;color:#0d0c0c;} .ft03{font-size:13px;font-family:Times;color:#000000;} .ft04{font-size:13px;font-family:Times;color:#1b62b7;} .ft05{font-size:13px;line-height:30px;font-family:Times;color:#000000;} .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/PBC_1243255001.png" alt="background image"/> <p style="position:absolute;top:155px;left:108px;white-space:nowrap" class="ft00"><b>Research Announcement:&#160;</b></p> <p style="position:absolute;top:155px;left:364px;white-space:nowrap" class="ft01"><b>Moody's - China fine-tunes property market</b></p> <p style="position:absolute;top:180px;left:108px;white-space:nowrap" class="ft01"><b>policies as sales grow at double-digit rates</b></p> <p style="position:absolute;top:216px;left:108px;white-space:nowrap" class="ft02">Hong Kong, August 27, 2020 --</p> <p style="position:absolute;top:246px;left:108px;white-space:nowrap" class="ft05">»&#160;Measures include tighter purchase and resale requirements, and higher down payment ratios<br/>»&#160;Chinese government will selectively control credit growth to avoid overheating the property sector</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft02">Moody’s Investors Service says in a new report that local Chinese governments have fine-tuned</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft02">measures to control property price growth in Tier 1 and Tier 2 cities, a trend it expects to continue in</p> <p style="position:absolute;top:351px;left:108px;white-space:nowrap" class="ft06">an aim to maintain stability.<br/>“Contracted sales value growth (on a three-month moving average basis) accelerated to a strong</p> <p style="position:absolute;top:401px;left:108px;white-space:nowrap" class="ft02">15.1% in July from 9.4% in June, driven by increases in both sales volumes and property prices,</p> <p style="position:absolute;top:421px;left:108px;white-space:nowrap" class="ft02">indicating the sector has shaken off the impact of the coronavirus and continues its growth path,”</p> <p style="position:absolute;top:440px;left:108px;white-space:nowrap" class="ft06">says Danny Chan, a Moody’s Assistant Vice President and Analyst.<br/>Moody’s-rated developers continued to outperform the market, with contracted sales value growth</p> <p style="position:absolute;top:490px;left:108px;white-space:nowrap" class="ft02">(on a three-month moving average basis) reaching 19% in July for the 30 developers it tracks from</p> <p style="position:absolute;top:509px;left:108px;white-space:nowrap" class="ft06">11% in June.<br/>“We expect governments will keep a close eye on developments and selectively control credit</p> <p style="position:absolute;top:559px;left:108px;white-space:nowrap" class="ft02">growth as needed, with both the central government and the People’s Bank of China recently having</p> <p style="position:absolute;top:579px;left:108px;white-space:nowrap" class="ft02">reaffirmed their commitment to maintaining stability in the property market amid growing property</p> <p style="position:absolute;top:598px;left:108px;white-space:nowrap" class="ft06">prices,” adds Chan.<br/>Offshore bond issuance meanwhile slowed to $3.0 billion in the month to 24 August from highs of</p> <p style="position:absolute;top:648px;left:108px;white-space:nowrap" class="ft02">$5.9 billion in July and $4.9 billion in June. While liquidity in the offshore market has been largely</p> <p style="position:absolute;top:667px;left:108px;white-space:nowrap" class="ft02">supportive over the past 2-3 months, it will likely continue to favour issuers with good credit quality</p> <p style="position:absolute;top:687px;left:108px;white-space:nowrap" class="ft06">for the remainder of the year given lingering uncertainty in the global financial markets.<br/>Moody’s July Asian Liquidity Stress sub-indicator for rated high-yield Chinese developers stayed</p> <p style="position:absolute;top:737px;left:108px;white-space:nowrap" class="ft02">stable at 19.7% in June, supported by the gradual recovery in property sales and the issuance</p> <p style="position:absolute;top:756px;left:108px;white-space:nowrap" class="ft02">of bonds for refinancing in both onshore and offshore markets. Refinancing needs remain high,</p> <p style="position:absolute;top:776px;left:108px;white-space:nowrap" class="ft02">with around $62.4 billion of onshore bonds and around $45.9 billion of offshore bonds maturing or</p> <p style="position:absolute;top:795px;left:108px;white-space:nowrap" class="ft06">becoming puttable over the next 12 months.<br/>Subscribers can access the August edition of Moody's monthly China Property Focus at:&#160;</p> <p style="position:absolute;top:826px;left:727px;white-space:nowrap" class="ft04">http://</p> <p style="position:absolute;top:845px;left:108px;white-space:nowrap" class="ft04">www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1241951</p> <p style="position:absolute;top:875px;left:108px;white-space:nowrap" class="ft02">NOTE TO JOURNALISTS ONLY: For more information, please call one of our global</p> <p style="position:absolute;top:895px;left:108px;white-space:nowrap" class="ft02">press information hotlines: New York <PhoneNo>+1-212-553-0376</PhoneNo>, London <PhoneNo>+44-20-7772-5456</PhoneNo>, Tokyo</p> <p style="position:absolute;top:914px;left:108px;white-space:nowrap" class="ft02"><PhoneNo>+813-5408-4110</PhoneNo>, Hong Kong <PhoneNo>+852-3758-1350</PhoneNo>, Sydney <PhoneNo>+61-2-9270-8141</PhoneNo>, Mexico City</p> <p style="position:absolute;top:934px;left:108px;white-space:nowrap" class="ft02"><PhoneNo>001-888-779-5833</PhoneNo>, São Paulo <PhoneNo>0800-891-2518</PhoneNo>, or Buenos Aires <PhoneNo>0800-666-3506</PhoneNo>. You can also email</p> <p style="position:absolute;top:953px;left:108px;white-space:nowrap" class="ft06">us at mediarelations@moodys.com or visit our web site at www.moodys.com.<br/>This publication does not announce a credit rating action. For any credit ratings referenced in this</p> <p style="position:absolute;top:1003px;left:108px;white-space:nowrap" class="ft02">publication, please see the ratings tab on the issuer/entity page on&#160;</p> <p style="position:absolute;top:1003px;left:574px;white-space:nowrap" class="ft04">www.moodys.com</p> <p style="position:absolute;top:1003px;left:701px;white-space:nowrap" class="ft02">&#160;for the most</p> <p style="position:absolute;top:1023px;left:108px;white-space:nowrap" class="ft02">updated credit rating action information and rating history.</p> </div> <!-- Page 2 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;} .ft07{font-size:13px;line-height:23px;font-family:Times;color:#0d0c0c;} --> </style> <div id="page2-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1243255002.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">Danny Chan</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft02">AVP-Analyst</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft02">Corporate Finance Group</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft02">Moody's Investors Service Hong Kong Ltd.</p> <p style="position:absolute;top:192px;left:108px;white-space:nowrap" class="ft02">JOURNALISTS: 852 3758 1350</p> <p style="position:absolute;top:211px;left:108px;white-space:nowrap" class="ft06">Client Service: 852 3551 3077<br/>Franco Leung, CFA</p> <p style="position:absolute;top:261px;left:108px;white-space:nowrap" class="ft02">Associate Managing Director</p> <p style="position:absolute;top:280px;left:108px;white-space:nowrap" class="ft02">Corporate Finance Group</p> <p style="position:absolute;top:300px;left:108px;white-space:nowrap" class="ft02">Moody's Investors Service Hong Kong Ltd.</p> <p style="position:absolute;top:319px;left:108px;white-space:nowrap" class="ft02">JOURNALISTS: 852 3758 1350</p> <p style="position:absolute;top:339px;left:108px;white-space:nowrap" class="ft06">Client Service: 852 3551 3077<br/>Releasing Office:</p> <p style="position:absolute;top:389px;left:108px;white-space:nowrap" class="ft02">Moody's Investors Service Hong Kong Ltd.</p> <p style="position:absolute;top:408px;left:108px;white-space:nowrap" class="ft02">24/F One Pacific Place</p> <p style="position:absolute;top:428px;left:108px;white-space:nowrap" class="ft02">88 Queensway</p> <p style="position:absolute;top:447px;left:108px;white-space:nowrap" class="ft02">Hong Kong</p> <p style="position:absolute;top:467px;left:108px;white-space:nowrap" class="ft02">China (Hong Kong S.A.R.)</p> <p style="position:absolute;top:486px;left:108px;white-space:nowrap" class="ft02">JOURNALISTS: 852 3758 1350</p> <p style="position:absolute;top:506px;left:108px;white-space:nowrap" class="ft02">Client Service: 852 3551 3077</p> <p style="position:absolute;top:595px;left:108px;white-space:nowrap" class="ft02">© 2020 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their</p> <p style="position:absolute;top:615px;left:108px;white-space:nowrap" class="ft07">licensors and affiliates (collectively, “MOODY’S”). All rights reserved.<br/>CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT</p> <p style="position:absolute;top:657px;left:108px;white-space:nowrap" class="ft02">RATINGS AFFILIATES ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE</p> <p style="position:absolute;top:677px;left:108px;white-space:nowrap" class="ft02">CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES,</p> <p style="position:absolute;top:696px;left:108px;white-space:nowrap" class="ft02">AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S</p> <p style="position:absolute;top:716px;left:108px;white-space:nowrap" class="ft02">(COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S</p> <p style="position:absolute;top:735px;left:108px;white-space:nowrap" class="ft02">INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT</p> <p style="position:absolute;top:755px;left:108px;white-space:nowrap" class="ft02">MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY</p> <p style="position:absolute;top:774px;left:108px;white-space:nowrap" class="ft02">ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S</p> <p style="position:absolute;top:794px;left:108px;white-space:nowrap" class="ft02">RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES</p> <p style="position:absolute;top:813px;left:108px;white-space:nowrap" class="ft02">OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S INVESTORS</p> <p style="position:absolute;top:833px;left:108px;white-space:nowrap" class="ft02">SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK,</p> <p style="position:absolute;top:852px;left:108px;white-space:nowrap" class="ft02">INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE</p> <p style="position:absolute;top:872px;left:108px;white-space:nowrap" class="ft02">VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER</p> <p style="position:absolute;top:891px;left:108px;white-space:nowrap" class="ft02">OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT</p> <p style="position:absolute;top:911px;left:108px;white-space:nowrap" class="ft02">OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE</p> <p style="position:absolute;top:930px;left:108px;white-space:nowrap" class="ft02">MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY</p> <p style="position:absolute;top:950px;left:108px;white-space:nowrap" class="ft02">PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT</p> <p style="position:absolute;top:969px;left:108px;white-space:nowrap" class="ft02">RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE</p> <p style="position:absolute;top:989px;left:108px;white-space:nowrap" class="ft02">OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS,</p> <p style="position:absolute;top:1008px;left:108px;white-space:nowrap" class="ft02">ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE</p> <p style="position:absolute;top:1028px;left:108px;white-space:nowrap" class="ft02">RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S</p> <p style="position:absolute;top:1047px;left:108px;white-space:nowrap" class="ft02">CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT</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/PBC_1243255003.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR.</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft02">MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND</p> <p style="position:absolute;top:153px;left:108px;white-space:nowrap" class="ft02">PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH</p> <p style="position:absolute;top:172px;left:108px;white-space:nowrap" class="ft02">INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH</p> <p style="position:absolute;top:192px;left:108px;white-space:nowrap" class="ft07">SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.<br/>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02">ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft02">AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS,</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft02">ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft02">DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft02">PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft02">BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH</p> <p style="position:absolute;top:351px;left:108px;white-space:nowrap" class="ft02">INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER</p> <p style="position:absolute;top:371px;left:108px;white-space:nowrap" class="ft02">TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED</p> <p style="position:absolute;top:390px;left:108px;white-space:nowrap" class="ft02">FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM</p> <p style="position:absolute;top:410px;left:108px;white-space:nowrap" class="ft02">OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S</p> <p style="position:absolute;top:429px;left:108px;white-space:nowrap" class="ft07">PRIOR WRITTEN CONSENT.<br/>MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE</p> <p style="position:absolute;top:472px;left:108px;white-space:nowrap" class="ft02">NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED</p> <p style="position:absolute;top:491px;left:108px;white-space:nowrap" class="ft02">FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT</p> <p style="position:absolute;top:511px;left:108px;white-space:nowrap" class="ft07">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:553px;left:108px;white-space:nowrap" class="ft02">accurate and reliable. Because of the possibility of human or mechanical error as well as other</p> <p style="position:absolute;top:573px;left:108px;white-space:nowrap" class="ft02">factors, however, all information contained herein is provided “AS IS” without warranty of any kind.</p> <p style="position:absolute;top:592px;left:108px;white-space:nowrap" class="ft02">MOODY'S adopts all necessary measures so that the information it uses in assigning a credit</p> <p style="position:absolute;top:612px;left:108px;white-space:nowrap" class="ft02">rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when</p> <p style="position:absolute;top:631px;left:108px;white-space:nowrap" class="ft02">appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot</p> <p style="position:absolute;top:651px;left:108px;white-space:nowrap" class="ft02">in every instance independently verify or validate information received in the rating process or in</p> <p style="position:absolute;top:670px;left:108px;white-space:nowrap" class="ft07">preparing its Publications.<br/>To the extent permitted by law, MOODY’S and its directors, officers, employees, agents,</p> <p style="position:absolute;top:713px;left:108px;white-space:nowrap" class="ft02">representatives, licensors and suppliers disclaim liability to any person or entity for any indirect,</p> <p style="position:absolute;top:732px;left:108px;white-space:nowrap" class="ft02">special, consequential, or incidental losses or damages whatsoever arising from or in connection</p> <p style="position:absolute;top:752px;left:108px;white-space:nowrap" class="ft02">with the information contained herein or the use of or inability to use any such information, even if</p> <p style="position:absolute;top:771px;left:108px;white-space:nowrap" class="ft02">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers</p> <p style="position:absolute;top:791px;left:108px;white-space:nowrap" class="ft02">is advised in advance of the possibility of such losses or damages, including but not limited to:</p> <p style="position:absolute;top:810px;left:108px;white-space:nowrap" class="ft02">(a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant</p> <p style="position:absolute;top:830px;left:108px;white-space:nowrap" class="ft07">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:872px;left:108px;white-space:nowrap" class="ft02">representatives, licensors and suppliers disclaim liability for any direct or compensatory losses</p> <p style="position:absolute;top:892px;left:108px;white-space:nowrap" class="ft02">or damages caused to any person or entity, including but not limited to by any negligence (but</p> <p style="position:absolute;top:911px;left:108px;white-space:nowrap" class="ft02">excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt,</p> <p style="position:absolute;top:931px;left:108px;white-space:nowrap" class="ft02">by law cannot be excluded) on the part of, or any contingency within or beyond the control of,</p> <p style="position:absolute;top:950px;left:108px;white-space:nowrap" class="ft02">MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers,</p> <p style="position:absolute;top:970px;left:108px;white-space:nowrap" class="ft02">arising from or in connection with the information contained herein or the use of or inability to use</p> <p style="position:absolute;top:989px;left:108px;white-space:nowrap" class="ft07">any such information.<br/>NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS,</p> <p style="position:absolute;top:1032px;left:108px;white-space:nowrap" class="ft02">COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF</p> </div> <!-- Page 4 --> <style type="text/css"> <!-- p {margin: 0; padding: 0;}--> </style> <div id="page4-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1243255004.png" alt="background image"/> <p style="position:absolute;top:114px;left:108px;white-space:nowrap" class="ft02">ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE</p> <p style="position:absolute;top:133px;left:108px;white-space:nowrap" class="ft07">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:176px;left:108px;white-space:nowrap" class="ft02">Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and</p> <p style="position:absolute;top:195px;left:108px;white-space:nowrap" class="ft02">municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s</p> <p style="position:absolute;top:215px;left:108px;white-space:nowrap" class="ft02">Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s</p> <p style="position:absolute;top:234px;left:108px;white-space:nowrap" class="ft02">Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from</p> <p style="position:absolute;top:254px;left:108px;white-space:nowrap" class="ft02">$1,000 to approximately $2,700,000. MCO and Moody’s Investors Service also maintain policies</p> <p style="position:absolute;top:273px;left:108px;white-space:nowrap" class="ft02">and procedures to address the independence of Moody’s Investors Service credit ratings and credit</p> <p style="position:absolute;top:293px;left:108px;white-space:nowrap" class="ft02">rating processes. Information regarding certain affiliations that may exist between directors of MCO</p> <p style="position:absolute;top:312px;left:108px;white-space:nowrap" class="ft02">and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and</p> <p style="position:absolute;top:332px;left:108px;white-space:nowrap" class="ft02">have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted</p> <p style="position:absolute;top:351px;left:108px;white-space:nowrap" class="ft02">annually at&#160;</p> <p style="position:absolute;top:351px;left:188px;white-space:nowrap" class="ft04">www.moodys.com</p> <p style="position:absolute;top:351px;left:315px;white-space:nowrap" class="ft02">&#160;under the heading “Investor Relations — Corporate Governance —</p> <p style="position:absolute;top:371px;left:108px;white-space:nowrap" class="ft07">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:413px;left:108px;white-space:nowrap" class="ft02">Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited</p> <p style="position:absolute;top:433px;left:108px;white-space:nowrap" class="ft02">ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136</p> <p style="position:absolute;top:452px;left:108px;white-space:nowrap" class="ft02">972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale</p> <p style="position:absolute;top:472px;left:108px;white-space:nowrap" class="ft02">clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access</p> <p style="position:absolute;top:491px;left:108px;white-space:nowrap" class="ft02">this document from within Australia, you represent to MOODY’S that you are, or are accessing</p> <p style="position:absolute;top:511px;left:108px;white-space:nowrap" class="ft02">the document as a representative of, a “wholesale client” and that neither you nor the entity you</p> <p style="position:absolute;top:530px;left:108px;white-space:nowrap" class="ft02">represent will directly or indirectly disseminate this document or its contents to “retail clients” within</p> <p style="position:absolute;top:550px;left:108px;white-space:nowrap" class="ft02">the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as</p> <p style="position:absolute;top:569px;left:108px;white-space:nowrap" class="ft02">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:589px;left:108px;white-space:nowrap" class="ft07">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:631px;left:108px;white-space:nowrap" class="ft02">subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc.,</p> <p style="position:absolute;top:651px;left:108px;white-space:nowrap" class="ft02">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:670px;left:108px;white-space:nowrap" class="ft02">agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization</p> <p style="position:absolute;top:690px;left:108px;white-space:nowrap" class="ft02">(“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-</p> <p style="position:absolute;top:709px;left:108px;white-space:nowrap" class="ft02">NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated</p> <p style="position:absolute;top:729px;left:108px;white-space:nowrap" class="ft02">obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit</p> <p style="position:absolute;top:748px;left:108px;white-space:nowrap" class="ft02">rating agencies registered with the Japan Financial Services Agency and their registration numbers</p> <p style="position:absolute;top:768px;left:108px;white-space:nowrap" class="ft07">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:810px;left:108px;white-space:nowrap" class="ft02">corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated</p> <p style="position:absolute;top:830px;left:108px;white-space:nowrap" class="ft02">by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to</p> <p style="position:absolute;top:849px;left:108px;white-space:nowrap" class="ft02">MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging</p> <p style="position:absolute;top:869px;left:108px;white-space:nowrap" class="ft07">from JPY125,000 to approximately JPY250,000,000.<br/>MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory</p> <p style="position:absolute;top:911px;left:108px;white-space:nowrap" class="ft02">requirements.</p> </div> </body> </html>