S&P Global Ratings Definitions

1 S&P Global Ratings DefinitionsTable Of ContentsI. GENERAL-PURPOSE CREDIT RATINGSA. Issue Credit RatingsB. Issuer Credit RatingsII. CREDITWATCH, RATING OUTLOOK , LOCAL CURRENCY ANDFOREIGN CURRENCY RATINGSA. CreditWatchB. Rating OutlooksC. Local Currency and Foreign Currency RatingsIII. SPECIAL-PURPOSE RATINGSA. Dual RatingsB. Fund Credit Quality RatingsC. Fund Volatility RatingsD. Insurance Financial Enhancement RatingsE. Insurer Financial Strength RatingsF. Municipal Short-Term Note RatingsG. Principal Stability Fund RatingsH. Mid-Market Evaluation 18, 2016 11695715 | 301595411 Table Of Contents (cont.)I. Recovery RatingsJ. SPUR (Standard & Poor's Underlying Rating)K. Swap Risk RatingsL. Counterparty Instrument RatingsIV. QUALIFIERSA. Active QualifiersB. Inactive QualifiersV. NATIONAL AND REGIONAL SCALE RATINGSA.

2 National And Regional Scale RatingsB. General National And Regional Scale RatingsC. National Scale Insurer Financial Strength RatingsD. Canada National Scale RatingsE. Nordic Regional Scale Short-Term RatingsF. Standard & Poor's Maalot (Israel) National Scale RatingsG. Taiwan Ratings National Scale RatingsH. Japan SME National Scale RatingsVI. OTHER CREDIT RELATED OPINIONSA. Credit EstimatesB. Credit AssessmentsVII. OTHER IDENTIFIERSA. Active IdentifiersB. Inactive IdentifiersVIII. RELATED CRITERIA AND RESEARCHIX. CONTACT 18, 2016 21695715 | 301595411S&P Global Ratings Definitions (Editor's Note:We republished this article on Aug. 18, 2016, to revise the definition of 'unsolicited' Ratings , paragraph 112.)S&P Global Ratings DisclaimersThe analyses, including Ratings , of S&P Global Ratings and its affiliates (together, S&P Global Ratings ) arestatements of opinion as of the date they are expressed and not statements of fact or recommendations topurchase, hold, or sell any securities or make any investment decisions.

3 S&P Global Ratings assumes noobligation to update any information following publication. Users of Ratings or other analyses should not rely onthem in making any investment decision. S&P Global Ratings ' opinions and analyses do not address the suitabilityof any security. S&P Global Ratings does not act as a fiduciary or an investment advisor except where registeredas such. While S&P Global Ratings has obtained information from sources it believes to be reliable, it does notperform an audit and undertakes no duty of due diligence or independent verification of any information itreceives. Ratings and other opinions may be changed, suspended, or withdrawn at any document contains S&P Global Ratings ' credit rating Definitions . The Definitions are classified into two types;general-purpose credit Ratings and special-purpose Ratings .

4 S&P Global Ratings ' credit Ratings scales use letters,numbers, and/or words to summarize the opinion. The rating definition provides the meaning of the letters, numbersand/or words. Additionally, some Ratings are expressed with qualifiers, suffixes and/or identifiers attached. Definitionsof this supplementary information are I describes the general-purpose credit rating, both issue and issuer credit Ratings , and the long-term andshort-term credit Ratings . Section II provides information on CreditWatch, rating outlooks and local currency andforeign currency Ratings . Special-purpose Ratings are detailed in section III. Qualifiers are covered in section V details national and regional scale Ratings . Other credit related opinions are described in section VI. SectionVII details seven identifiers.

5 Section IX includes a list of contacts for further Global Ratings provides other services not covered in this Ratings Definitions document. Information about otherproducts and services is located on the S&P Global Ratings website at GENERAL-PURPOSE CREDIT following sets of rating Definitions are for long-term and short-term credit Ratings for both issuer and issue types of credit Ratings cover the broadest set of credit risk factors and are not limited in scope. Some refer tothese as the "traditional" credit Issue Credit S&P Global Ratings issue credit rating is a forward-looking opinion about the creditworthiness of an obligor withrespect to a specific financial obligation, a specific class of financial obligations, or a specific financial 18, 2016 31695715 | 301595411(including Ratings on medium-term note programs and commercial paper programs).

6 It takes into consideration thecreditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into accountthe currency in which the obligation is denominated. The opinion reflects S&P Global Ratings ' view of the obligor'scapacity and willingness to meet its financial commitments as they come due, and may assess terms, such as collateralsecurity and subordination, which could affect ultimate payment in the event of credit Ratings can be either long-term or short-term. Short-term Ratings are generally assigned to thoseobligations considered short-term in the relevant market. In the , for example, that means obligations with anoriginal maturity of no more than 365 days including commercial paper. Short-term Ratings are also used to indicatethe creditworthiness of an obligor with respect to put features on long-term obligations.

7 Medium-term notes areassigned long-term Long-Term Issue Credit credit Ratings are based, in varying degrees, on S&P Global Ratings ' analysis of the following considerations: The likelihood of payment--the capacity and willingness of the obligor to meet its financial commitment on afinancial obligation in accordance with the terms of the obligation; The nature and provisions of the financial obligation, and the promise we impute; and The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' Ratings are an assessment of default risk, but may incorporate an assessment of relative seniority or ultimaterecovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect the lowerpriority in bankruptcy, as noted above.

8 (Such differentiation may apply when an entity has both senior andsubordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)Table 1 Long-Term Issue Credit Ratings *CategoryDefinitionAAAAn obligation rated 'AAA' has the highest rating assigned by S&P Global Ratings . The obligor's capacity to meet its financialcommitment on the obligation is extremely obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet itsfinancial commitment on the obligation is very obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economicconditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on theobligation is still obligation rated 'BBB' exhibits adequate protection parameters.

9 However, adverse economic conditions or changingcircumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the ; B; CCC;CC; and CObligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics . 'BB' indicates theleast degree of speculation and 'C' the highest. While such obligations will likely have some quality and protectivecharacteristics, these may be outweighed by large uncertainties or major exposures to adverse obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoinguncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequatecapacity to meet its financial commitment on the obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacityto meet its financial commitment on the obligation.

10 Adverse business, financial, or economic conditions will likely impair theobligor's capacity or willingness to meet its financial commitment on the 18, 2016 41695715 | 301595411S&P Global Ratings DefinitionsTable 1 Long-Term Issue Credit Ratings * (cont.)CategoryDefinitionCCCAn obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, andeconomic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business,financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on obligation rated 'CC' is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yetoccurred, but S&P Global Ratings expects default to be a virtual certainty, regardless of the anticipated time to obligation rated 'C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relativeseniority or lower ultimate recovery compared to obligations that are rated obligation rated 'D' is in default or in breach of an imputed promise.