The Economic Outlook for the Nordics: Impact of COVID-19 - June 15, 2020
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The Economic Outlook for the Nordics:
Impact of COVID-19
June 15, 2020
Nordics Webinar Series
Episode 1 Episode 2
Monday, 15 June Thursday, 18 June
10:00 BST | 11:00 CEST 14:00 BST | 15:00 CEST
The Economic Outlook for Embedding Liquidity and
the Nordics - Impact of Interest Rate Risk Stress
COVID-19 Testing into Your
Organisation
Today’s Speakers
Juan Licari, PhD Barbara Teixeira Araujo Petr Zemcik PhD
Managing Director Economist Senior Director
Economics & Business Analytics
Outlook Nordics 3
Agenda
1. The pandemic evolution and perspectives on the road to
recovery
2. Actions taken by policymakers to avoid a deeper recession
3. Macroeconomic forecasting and interest rates
4. Risks to the baseline view: What else can go wrong?
Outlook Nordics 4
The pandemic evolution and
1 perspectives on the road to
recoveryEpidemiological Update: Nordics
COVID-19 New & Cumulative Cases, Cumulative Deaths
Finland Denmark
100000 Daily cases (L) Cumulative cases (L)
500 100000
Daily cases (L) Cumulative cases (L)
800
10000 Cumulative deaths ( R) 400 10000 Cumulative deaths ( R)
600
1000 300 1000
100 200 100 400
10 100 10 200
1 0 1 0
1 Mar 20 Mar 8 Apr 27 Apr 16 May 4 Jun 1 Mar 20 Mar 8 Apr 27 Apr 16 May 4 Jun
Norway Sweden
100000 Daily cases (L) Cumulative cases (L)
300 100000 Daily cases (L) Cumulative cases (L)
6000
Cumulative deaths ( R) 250 Cumulative deaths ( R)
10000 10000
200 4000
1000 1000
150
100
100 100
2000
10 50 10
1 0
1 Mar 20 Mar 8 Apr 27 Apr 16 May 4 Jun 1 0
1 Mar 20 Mar 8 Apr 27 Apr 16 May 4 Jun
Sources: World Health Organization
Outlook Nordics 6Disparities Across Countries
Real GDP, % change qtr ago
Sweden
Finland 19Q4
Norway
Netherlands
20Q1
Denmark
Germany
Austria
Euro Zone
Italy
France
-6 -5 -4 -3 -2 -1 0 1 2
Sources: Eurostat, Moody’s Analytics
Outlook Nordics 7Average Impact on Economic Activity
Deviation from normal level of activity, ppts, by industry, 2020 (average SWE, NOR, FIN, DKK)
Apr May Jun Jul Aug Sep-Dec
0
-5
-10
-15 Arts Accom. Transp. Wholesale
Manufact. Real Est. Energy Constr.
-20 Educ. Finance Public admin. Prof.
Other service Water Supply Agric. Admin.
Households ICT Mining Total
-25
Finland Sweden Denmark Norway
-30
Sources: Moody’s Analytics
Outlook Nordics 8Virus Will Hurt Global Economies
Ppt contribution to global GDP growth from 1% deceleration in GDP growth of specified country
0.0
-0.2
-0.4
EMEA
-0.6
EM LatAm
EM Asia
-0.8 Developed
Direct
-1.0
U.S. EU China Japan
Sources: Moody’s Analytics
Outlook Nordics 9International Trade Will Collapse This Year
Exports in volume, % change
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0 Norway Sweden
-8.0 Denmark Finland
-10.0 Estonia
-12.0
2019 2020F 2021F 2022F
Sources: Moody’s Analytics
Outlook Nordics 10Confidence Falls off Cliff’s Edge
Euro zone confidence indicators, balance of opinions
130
120
110
100
90
80
70
European Union Sweden Finland Denmark
60
50
Jan-08 Oct-09 Jul-11 Apr-13 Jan-15 Oct-16 Jul-18 Apr-20
Sources: European Commission, Moody’s Analytics
Outlook Nordics 11Output Declines in Q2
Annualized GDP growth, %
2020Q1 2020Q2 2020Q3 2020Q4 2020 2021
Global June -11.6 -25.8 23.7 6.3 -4.8 4.5
April -10.9 -22.1 19.9 4.5 -4.9 2.8
February 1.4 3.6 3.1 2.6 2.4 2.9
Euro Zone June -14.2 -42.6 62.6 2.3 -7.3 4.5
April -14.8 -40.0 59.3 1.6 -7.0 4.5
February 1.7 1.6 1.7 1.4 1.3 1.5
Germany June -8.6 -36.0 50.8 1.4 -5.2 4.0
April -10.5 -36.4 50.4 -1.5 -5.9 3.4
February 1.5 1.5 1.9 1.5 1.1 1.3
Sweden June 0.5 -27.6 17.1 0.5 -3.7 1.0
April -4.3 -29.5 26.9 1.9 -4.1 1.6
February 1.6 1.5 1.3 1.9 1.4 1.8
Norway June -6.0 -40.1 53.4 0.6 -4.4 4.2
April -5.6 -40.1 56.0 0.0 -4.1 4.0
February 2.6 3.2 3.1 1.4 3.0 1.7
Finland June -3.4 -50.2 55.7 5.3 -7.7 3.0
April -8.7 -33.6 40.8 -0.3 -5.6 2.7
February 2.9 1.4 -0.4 1.3 1.3 1.7
Denmark June -8.0 -35.2 34.3 -0.6 -5.6 2.2
April -9.6 -35.2 44.2 -0.5 -4.9 2.8
February 1.3 1.0 1.2 1.0 1.3 1.0
Netherlands June -6.7 -38.9 34.9 0.0 -6.3 2.4
April -9.3 -33.8 43.2 -0.1 -4.9 3.3
February 0.8 2.2 2.0 2.0 1.4 2.2
Sources: Moody’s Analytics
Outlook Nordics 12Actions taken by
2 policymakers to avoid a
deeper recessionPolicymakers Aggressively Respond: Nordics Countries
Country Fiscal policy Monetary policy
- Increased spending on the health system and at risk sectors, VAT - No rate cuts expected, as it would bring the Riksbank's policy rate
deferrals, zero-interest loans, and loan guarantees. below zero.
- The upper limit of the package: SEK 800 bn (€ 73 bn, 16% of GDP), - QE package that will buy up to SEK 300 bn (€ 73 bn, 6% of GDP) in
Sweden
- MA’s estimate: in the middle of the range of around SEK 300 bn (€ government, municipal, and mortgage-backed securities
73 bn, 6% of GDP) in 2020. - Offering up to SEK 500 bn (€ 46 bn, 10% of GDP) in loans to private
banks for lending to nonfinancial corporations.
- DKK 60 bn (€ 8 bn, 2.5% of GDP) worth of stimulus to shore up the - The Denmarks Nationalbank increased its policy rate by 15 bps to -
health system, and support workers and firms through tax deferrals 0.6% on March 20th to maintain the exchange rate peg to the euro.
Denmark and benefit payments. - The Danmarks Nationalbank introduced several liquidity facility
- MA expects, the measures should add another DKK 90 bn (€ 12 bn, instruments to increase loans to banks
3.8% of GDP) in government spending during 2020. - MA’s baseline will hold the rate steady in the near term.
- Announced fiscal stimulus amount to NOK 160bn (€ 14.8 bn, 5.5% - Norges Bank reduced the key policy rate by a cumulative 150 bps to
of nominal GDP). 0%. MA does not forecast a further reduction this year.
- Combined measures: spending on health system, expanded sick - Introduction of liquidity facilities to banks; easing of countercyclical
Norway benefits, compensate losses in cultural/sports sectors, support self- capital buffer
employed , credit guarantees, SMLEs, airlines, allow - There is evidence that Norges Bank is intervening in currency
reallocations/deferrals/suspensions of tax payments reduce social markets to support the Norwegian krone and further interventions
security contributions. are possible.
- Implemented four supplementary budget proposals, including ECB:
delays in corporate tax payments, spending on healthcare, - PEPP package worth 1.35 trillion, to last until June 2021 and with
expansion of UI benefits to the self employed, subsidies for small proceeds set to be reinvested
business - Additiontal QE package worth € 120 bn to be used by December
Finland - Net borrowing could reach €18.8 billion in 2020, or 8% of GDP. - Lowered TLTRO III rate to -0.75%
- The state pension fund will also buy € 1bn in commercial paper - Eased capital requirements
and the state financing company. Finland’s Export Credit Agency:
- Guarantee loans to SMEs by € 10 billion
Outlook Nordics 14Who Has Fiscal Space?
Sovereign borrowing capacity given current yields, proj. output growth and primary bal.
450
Norway Circle size=Real GDP, USD
400 Sweden Y-axis: Fiscal space
350 Denmark China
Finland X-axis: Debt-to-GDP ratio
300 As of 2020Q1 (excludes announced
250 U.S. COVID-19 policies)
200 Russia Spain
150
100 France
Germany Italy
50 U.K. Greece Japan
0 Argentina
Turkey
-50
0 50 100 150 200 250
Source: Moody’s Analytics
Outlook Nordics 153 Macroeconomic forecasting
and interest ratesEuribor Model - Components
Euribor
Monetary policy
equilibrium Euribor spread Euribor
rate
spread
Deposit rate U.S. Libor spread
Excess Financial crisis Monetary policy
reserves dummy rate
Sovereign crisis
dummy
Outlook Nordics 17Eurozone Interest Rates Remain Low
3.0 interest rates, EUR/USD FX rate and Inflation
Key
2.5 ECB policy rate ECB deposit rate 10Y Bund yield CPI (y/y %)
2.0
Interest rates and CPI
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
17Q1 17Q3 18Q1 18Q3 19Q1 19Q3 20Q1 20Q3 21Q1 21Q3
Sources: ECB, Eurostat
Outlook Nordics 18The Pandemic Start Shifted the Euribor Forecast
Equilibrium spread, % Actual spread, %
1.5 1.5
Before After Actual spread
1.0 1.0 Before After
0.5 0.5
0.0 0.0
-0.5 -0.5
-1.0 -1.0
2007Q1 2012Q1 2017Q1 2022Q1 2027Q1 2032Q1 2007Q1 2012Q1 2017Q1 2022Q1 2027Q1 2032Q1
Main refinancing rate Euribor
5.0 6.0
Before After 5.0 Before After
4.0
4.0
3.0
3.0
2.0
2.0
1.0 1.0
0.0 0.0
-1.0 -1.0
2007Q1 2012Q1 2017Q1 2022Q1 2027Q1 2032Q1 2007Q1 2012Q1 2017Q1 2022Q1 2027Q1 2032Q1
Sources: ECB, Moody’s Analytics
Outlook Nordics 19Spread: Money Market Rates – Policy Rate
Spreads, % Level, %
1.5 7.0
Sweden Norway Denmark Eurozone 6.0 Sweden Norway
1.0 Denmark Eurozone
5.0
0.5 4.0
3.0
0.0 2.0
1.0
-0.5
0.0
-1.0 -1.0
2007Q1 2012Q1 2017Q1 2022Q1 2007Q1 2012Q1 2017Q1 2022Q1
Sources: Central banks, Moody’s Analytics
Outlook Nordics 20Yields Drifting Sideways
10-year Sovereign Bond Yields, %
3.0
Germany Italy Sweden
2.5
Finland Norway Denmark
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
21-Jan-20 21-Feb-20 21-Mar-20 21-Apr-20 21-May-20
Sources: Bloomberg, Moody’s Analytics
March 2020 21Impact on the Yield Curve
Credit default swaps: Indexes - iTraxx Sovereign Western Europe, Month average, (bp, NSA)
400
360
Baseline S3: downside
300
300
240
180 200
120
100
60
0
0
2010 2013 2016 2019 2022 2025
2010 2013 2016 2019 2022 2025
110 40
June 2023
90 30
Baseline Stress
June 2020 20
70
Baseline Stress 10
50
0
30 -10
5Y 6Y 7Y 8Y 9Y 10Y 5Y 6Y 7Y 8Y 9Y 10Y
Sources: Intercontinental Exchange, Credit Market Analysis, Moody’s Analysis
224
Risks to the baseline view:
What else can go wrong?More Infections, Worse Downturn
Confirmed infections per mil inhabitants. For countries with unemployment rate data available for Apr 2020
12 Change in unemployment rate, Apr 2020 to 2019Q4
U.S.
10
y=0.0009x-0.116
8 Japan R²=0.29
Taiwan Canada
South Korea
6
Hungary
4 Hong
Kong Finland Peru
Denmark
2 Poland Russia Sweden Chile
Brazil Switzerland
Germany Netherlands Infections per million inhabitants
0
0 1,000 2,000 3,000 4,000 5,000 6,000
Sources: WHO, Government sources, Moody’s Analytics
Outlook Nordics 24Epidemiological Assumptions
COVID-19: Upside COVID-19 COVID-19: Downside
S1 Scenario Baseline Forecast S3 Scenario
• 5-10 mil confirmed global infections • 10-15 mil confirmed global • 15-20 mil confirmed global
• New infections peak in April infections infections
• 1.0% case fatality rate • New infections peak in May • New infections peak in June
• 8% hospitalization rate • 1.5% case fatality rate • 4.5% case fatality rate
• Infections abate by June • 10% hospitalization rate • 20% hospitalization rate
• Infections abate by July • Infections abate by September
Outlook Nordics 25Global Oil Glut
Mil barrels per day
12 110
Global balance (L)
Global demand (R) 105
8
Global supply (R)
100
4
95
0
90
-4 85
17Q1 18Q1 19Q1 20Q1
Sources: International Energy Agency, Moody’s Analytics
Outlook Nordics 26Oil Prices Subdued
USD per barrel, Brent
85
Baseline Upside Downside
75
65
55
45
35
25
15
16 17 18 19 20F 21F 22F 23F 24F 25F 26F 27F
Source: Moody’s Analytics
Outlook Nordics 27Financial stress can exceed previous peaks in a stress
Risky rate less risk-free rate, %, Debt Crisis Scenario
14.0 1.5
10Y bond spread, Germany
12.0 10y bond spread, Italy 1.0
10.0 Money market spread (R)
8.0 0.5
6.0 0.0
4.0
-0.5
2.0
0.0 -1.0
2008 2013 2018 2023 2028
Sources: Moody’s Analytics
Outlook Nordics 28Lost Decade in a Stress Scenario
Debt Crisis Scenario
GDP, Index, 2019q4=100 Unemployment rate, %
120 16
Norway Finland
115 14
Denmark Sweden
110 12
10
105
8
100
6
95 4 Norway Finland
90 2 Denmark Sweden
85 0
2019q4 2021 2023 2025 2027 2029 2020 2022 2024 2026 2028 2030
Stock price index, 2019q4=100
10Y bond yield, %
140
3
Norway Norway Finland
120 2
Finland Denmark Sweden
2
100 Denmark 1
80 Sweden 1
0
60
-1
40 -1
-2
20
2019q4 2021 2023 2025 2027 2029
-2
2020 2022 2024 2026 2028 2030
Sources: ECB, Moody’s Analytics
Outlook Nordics 29GDP Growth Under Various Risks
2020 for Baseline, S1, S3; 2024 for Debt Crisis; % change yr ago
Baseline S1 S3 Debt Crisis
0.00
-1.50
-3.00
-4.50
-6.00
-7.50
-9.00
Finland Sweden Denmark Norway
Sources: European Commission, Moody’s Analytics
Outlook Nordics 30Key Takeaways
1. 2020 output reduction in Nordics will be substantial despite declining rate of
infections but the increase in unemployment is smaller than elsewhere.
2. Strong fiscal position allows the Nordic countries to support their economies.
3. Actions of central banks help to reduce the level of short and long term
interest rates.
4. Risks to the expected recovery include subsequent breakouts of the COVID-
19, rising debt, trade wars, and oil prices for oil exporters such as Norway.
Q&A
Email us at help@economy.com
Outlook Nordics 31Nordics Webinar Series
Episode 1 Episode 2
Monday, 15June Thursday, 18 June
10:00 BST | 11:00 CEST 14:00 BST | 15:00 CEST
Embedding Liquidity and
The Economic Outlook for Interest Rate Risk Stress
the Nordics - Impact of Testing into Your
COVID-19 OrganisationContact Us: Economics & Business Analytics Offices
West Chester, EBA-HQ London Prague Singapore
+1.610.235.5299 +44.20.7772.5454 +420.22.422.2929 +65.6511.4400
121 North Walnut Street, Suite 500 One Canada Square Washingtonova 17 6 Shenton Way
West Chester PA 19380 Canary Wharf 110 00 Prague 1 #14-08 OUE Downtown 2
USA London E14 5FA Czech Republic Singapore 068809
United Kingdom
New York, Corporate-HQ Sydney Shanghai
+1.212.553.1653 Toronto +61.2.9270.8111 +86.21.6101.0172
7 World Trade Center, 14th Floor 416.681.2133 Level 10 Unit 2306, Citigroup Tower
250 Greenwich Street 200 Wellington Street West, 15th Floor 1 O'Connell Street 33 Huayuanshiqiao Road
New York, NY 10007 Toronto ON M5V 3C7 Sydney, NSW, 2000 Pudong New Area, 200120
USA Canada Australia China
help@economy.com moodysanalytics.com© 2020 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc.
rights reserved. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from
$1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from
OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading
PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL
FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S
MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL
OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act
LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a
PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to
MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt
RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES.
NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is
INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating
UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ
UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE. are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not
qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN
INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and
commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED,
REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED
FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or
mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all
necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable
including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or
validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any
person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information
contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives,
licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective
profits or (b) any loss or
damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned
by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any
direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful
misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the
control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the
information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY
PARTICULAR PURPOSE OF ANY CREDIT RATING OR
OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR
MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt
June 2020 34You can also read
