CORPORATE RATINGS METHODOLOGY Transparency. Comparability. . OUR METHODOLOGY Our Rating Process and Surveillance We assign a rating only when we believe we have adequate information to form a credible opinion, and only after we have conducted applicable quantitative, qualitative, and legal analyses. CORPORATE CRITERIA FRAMEWORK Country Risk • • • • Economic Institutional and Governance Legal Financial System C IC R A Standard & Poor’s Ratings Services’ corporate analytical methodology organizes the analytical process according to a common framework and divides the analysis into several steps so that we may consider all salient factors. The first step is analyzing a company’s business risk profile, followed by an evaluation of its financial risk profile. We combine our assessments to determine an issuer’s anchor. We then take several subsequent analytical steps using forward-looking analysis and analytic judgment to determine the ultimate rating conclusion with the goal of transparency and rating comparability. Underpinning the entire framework is financial analysis comprising reviews of historical financial statements, analytic adjustments, and cash flow forecasts. BUSINESS RISK PROFILE Industry Risk • Industry-specific growth trends • Market structure & competition • Industry cyclicality Competitive Position • • • • Competitive advantages Scale, scope, & diversity Operating efficiency Profitability FINANCIAL RISK PROFILE Cash Flow/Leverage COMBINING THE BUSINESS AND FINANCIAL RISK PROFILES TO DETERMIN Financial risk profile First, we assemble a team of analysts to review information pertinent to the rating. Members of the team then meet with an issuer’s management to review key factors that we think might affect the rating.

Following this review and discussion, the primary analyst determines the rating recommendation and presents that to an internal rating committee made up of other analysts. After discussion, the committee votes on the recommendation. The issuer is notified of the rating and the major considerations supporting it.

We provide for an appeal process if the issuer provides material new information. Once our assessment is complete and we have assigned a rating, we announce the rating in a report on our websites, except in the case of private or confidential ratings. Business risk profile 1 (minimal) 2 (modest) 3 (intermediate) 4 (significan 1 (excellent) aaa/aa+ aa a+/a a- 2 (strong) aa/aa- a+/a a-/bbb+ bbb 3 (satisfactory) a/a- bbb+ bbb/bbb- bbb-/bb+ 4 (fair) bbb/bbb- bbb- bb+ bb 5 (weak) bb+ bb+ bb bb- 6 (vulnerable) bb- bb- bb-/b+ b+ Ratings are monitored, and surveillance is ongoing except for pointin-time ratings. This process may result in our making changes in ratings, which are also disseminated through our websites. DESCRIPTION OF RATINGS Issuer Rating Description Issue Rating Rating Desc AAA Extremely Strong AAA A-1+ Oblig AA Very Strong AA A-1 Oblig A Strong A A-2 Oblig BBB Adequate BBB A-3 BB Less Vulnerable BB Oblig but v B More Vulnerable B B CCC Currently Vulnerable CCC Oblli ing u CC Currently Highly Vulnerable CC C Oblig men — Bankruptcy filing (or similar) C SD Selec SD Selective Default — D Defa D Default D Confidentiality Some information an issuer provides to us may be sensitive and is provided solely for the purpose of arriving at a rating.

We maintain confidentiality over all confidential information received and will not disclose it to third parties, as described in our terms and conditions provided to all issuer clients. We also will not share such information with our equity information services business unit. Please visit our dedicated ratings portal page for Corporate criteria-related content: www.spratings.com/CorpCriteria LONG TERM SHORT TERM . MODIFIERS DEBT INSTRUMENT ANALYSIS Diversification/ portfolio effect Terms & conditions Capital structure Financial policy ANCHOR Management/ governance Comparable ratings analysis CREDIT RATINGS •  e provide the market with a wide range of W ratings products, such as credit ratings on issuers of debt as well as ratings on individual debt issues. e 5 6 (aggressive) (highly leveraged) bbb bb bb b+ bb- b b+ b/b- b b- cription gor’s capacity is extremely strong gor’s capacity is strong gor’s capacity is satisfactory gor’s capacity is adequate, vulnerable to adverse circumstances igor’s capacity is subject to major ongouncertainties gor’s capacity is vulnerable to nonpaynt ctive Default ault • A credit rating is our opinion of the general  creditworthiness of a particular issuer, debt issue, or other financial obligation, based on relevant risk factors. bbb-/bb+ bb+ ISSUER CREDIT RATING Group or government influence NE THE ANCHOR nt) Asset collateral STANDALONE CREDIT PROFILE Liquidity ISSUE RATING •  credit rating does not constitute a A recommendation to purchase, sell, or hold a particular security. • A rating does not constitute a comment  on the suitability of an investment for a particular investor. Other security Subordination RECOVERY RATING Priority liabilities Asset values RATING OUTLOOK • Assigned to long-term ratings • Assesses the potential long-term credit direction •  ime horizon varies; typically six months to two years T •  ot necessarily a precursor to other rating actions N or a CreditWatch listing •  utlook options: positive, negative, stable, developing O CREDITWATCH LISTING •  ssesses the potential short-term credit direction A (event- or industry fundamentals-driven) •  ime horizon varies; generally resolved within 90 T days, unless pending developments prolong review •  e may request additional information for a W possible rating action •  reditWatch options: positive, negative, developing C RECOVERY RATINGS, RANGES & ISSUE RATINGS FOR SPECULATIVE-GRADE ISSUERS Recovery Rating Description of Recovery Recovery Range1 Issue Rating Notches3 1+ Highest expectation, full recovery 100%2 +3 1 Very high recovery 90 – 100% +2 2 Substantial recovery 70 – 90% +1 3 Meaningful recovery 50 – 70% 0 4 Average recovery 30 – 50% 0 5 Modest recovery 10 – 30% -1 6 Negligible recovery 0 – 10% -2 Recovery of principal plus accrued but unpaid interest at the time of default. Very high confidence of full recovery resulting from significant overcollateralization or strong structural features. 3Indicates issue rating “notches” relative to our issuer credit rating. 1 2 . FOR MORE INFORMATION The Americas China +1 212 438 2400 ratings_request@standardandpoors.com +8610 6569 2909 marketing.hk@standardandpoors.com Europe Hong Kong +44 20 7176 7176 clientsupporteurope@standardandpoors.com +852 2533 3500 marketing.hk@standardandpoors.com Japan Singapore +81 3 4550 8711 clientservices_japan@standardandpoors.com +65 62 396 316 clientservices_sse@standardandpoors.com Australia Korea +61 3 9631 2160 clientservices_pacific@standardandpoors.com +82 2 2022 2302 clientservices_korea@standardandpoors.com No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION.

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