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Issuance & RatIngs MonItoRj a n n e y c o R p o R at e c R e d I tno v e M b e R 6, 2015

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Issuance & RatIngs •

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INfoRmatIoN & DIsclaImeRs

Jody Lurie corporate credit analyst 215 665 6191 [email protected]

see page 4 for important information regarding certifications, our ratings system as well as other disclaimers.

The Issuance & Ratings Monitor is a Friday publication recapping the prior five trading days’ changes in the corporate bond space.

Week of october 30 – November 5

• Public corporate new issuance came in at $53.5B versus $50.3B last week, as more firms flooded the primary market after announcing 3Q results.

• Investment grade credit spreads were 24 basis points and high yield 71 basis points wide of year-end 2014, narrowing from the wides of last month.

Date Issuer Cpn MaturitySpread

+TsySize

($MM)Moody's S&P

5-Nov Alexandria Real Estate Eq 4.300% Jan-2026 +210 bps 300.0 Baa2 BBB-5-Nov Citigroup VAR PERPETUAL - 1,500.0 Baa2 A-5-Nov Halliburton 3.800% Nov-2025 +160 bps 2,000.0 A2 A5-Nov Halliburton 3.375% Nov-2022 +140 bps 1,250.0 A2 A5-Nov Halliburton 2.700% Nov-2020 +110 bps 1,250.0 A2 A5-Nov Halliburton 5.000% Nov-2045 +200 bps 2,000.0 A2 A5-Nov Halliburton 4.850% Nov-2035 +185 bps 1,000.0 A2 A5-Nov ICBC NY 2.905% Nov-2020 +125 bps 700.0 A1 A5-Nov ICBC NY 2.157% Nov-2018 +100 bps 300.0 A1 A5-Nov Shell Int'l 1.250% Nov-2017 +52 bps 1,000.0 Aa1 AA-5-Nov Shell Int'l FRN Nov-2018 - 500.0 Aa1 AA-5-Nov Shell Int'l FRN May-2017 - 1,000.0 Aa1 AA-5-Nov Shell Int'l 1.625% Nov-2018 +60 bps 1,250.0 Aa1 AA-5-Nov Shell Int'l 2.250% Nov-2020 +73 bps 1,250.0 Aa1 AA-5-Nov Westar Energy 4.250% Dec-2045 +125 bps 300.0 A2 BBB+4-Nov AvalonBay Communities 3.500% Nov-2025 +130 bps 300.0 Baa1 A-4-Nov CMS Energy 3.600% Nov-2025 +140 bps 250.0 Baa2 BBB4-Nov Ford Motor Credit 3.200% Jan-2021 +158 bps 1,300.0 Baa3 BBB-4-Nov Ford Motor Credit 4.134% Aug-2025 +173 bps 700.0 Baa3 BBB-4-Nov IBM 2.875% Nov-2022 +95 bps 900.0 Aa3 AA-4-Nov Swedish Export Credit FRN Nov-2017 - 500.0 Aa1 A-4-Nov Trans-Canada Ppln 1.625% Nov-2017 +83 bps 1,000.0 A3 A-3-Nov Arizona Public Svc 4.350% Nov-2045 +135 bps 250.0 A2 A-3-Nov Citigroup 4.050% Nov-2035 - 50.0 Baa1 A-3-Nov Credit Agricole VAR Aug-2016 - 100.0 A2 A3-Nov Huntington Nat'l Bank 2.200% Nov-2018 +115 bps 850.0 A3 BBB+3-Nov McCormick & 3.250% Nov-2025 +113 bps 250.0 A2 A-

New Issues: Investment Grade

j a n n e y f i x e d i n c o m e s t r at e g yno v e m b e r 6, 2015


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3-Nov Public Svc Electric 4.150% Nov-2045 +115 bps 250.0 Aa3 A2-Nov Consumers Energy 4.100% Nov-2045 +115 bps 250.0 A1 A2-Nov Mid-America Apartments 4.000% Nov-2025 +195 bps 400.0 Baa2 BBB2-Nov Pacific Gas & Electric 3.500% Jun-2025 +115 bps 200.0 A3 BBB2-Nov Pacific Gas & Electric 4.250% Mar-2046 +140 bps 450.0 A3 BBB2-Nov Southwest Airlines 2.650% Nov-2020 +113 bps 500.0 Baa1 BBB2-Nov United Air 2015-1 A PTT 3.700% Dec-2022 - 100.0 A2 A2-Nov United Air 2015-1 AA PTT 3.450% Dec-2027 - 333.7 Aa3 NR2-Nov Unum Gp 3.875% Nov-2025 +177 bps 275.0 Baa2 BBB30-Oct Bank of America ZERO Nov-2045 - 5.0 Baa1 A-30-Oct TD Bank VAR Oct-2020 - 5.0 Aa1 AA-Source: Janney FISR; FINRA TRACE; Moody’s; S&P; Fitch; ex-144a/REG S/sovereign debt; “*” in chart denotes under review

New Issues: High Yield

Date Issuer Cpn MaturitySpread

+TsySize

($MM)Moody's S&P

4-Nov Central Garden & Pet 6.125% Nov-2023 +403 bps 400.0 B2 BB-4-Nov CNH Industrial 4.375% Nov-2020 +291 bps 600.0 Ba1 BB2-Nov Ally Fin'l 3.250% Nov-2018 +223 bps 750.0 Ba3 BB+2-Nov Goodyear Tire & Rubber 5.125% Nov-2023 +311 bps 1,000.0 Ba3 BB2-Nov T-Mobile USA 6.500% Jan-2026 +432 bps 2,000.0 Ba3 BBSource: Janney FISR; FINRA TRACE; Moody’s; S&P; Fitch; ex-144a/REG S/sovereign debt; “*” in chart denotes under review

Ratings Changes: Investment Grade—Moody’s, S&P, and FitchCompany Name

Date Rtg Type

AgencyCurrRtg

PriorRtg

Industry Type

Astoria Financial 3-Nov LT Issuer Default Fitch BBB-*+ BBB- BanksBaker Hughes 3-Nov LT Foreign Issuer S&P A A*- Oilfield SvcsBaker Hughes 3-Nov Outlook S&P NEG Oilfield SvcsBank of America 2-Nov LT Foreign Issuer S&P A-*- A- BanksBNY Mellon 2-Nov LT Foreign Issuer S&P A+*- A+ BanksBank of Nova Scotia 2-Nov Issuer Moody's Aa2*- Aa2 BanksBrixmor Op Pntrshp 5-Nov Outlook S&P POS Shppng Cntr REITBunge 4-Nov LT Foreign Issuer S&P BBB BBB- Ag ProductsCitigroup 2-Nov LT Foreign Issuer S&P A-*- A- BanksDiscovery Comms 3-Nov LT Issuer Default Fitch BBB- BBB Local TV & Radio Discovery Comms 3-Nov Snr Unsec Debt Moody's Baa2*- Baa2 Local TV & Radio Discovery Comms 3-Nov LT Foreign Issuer S&P BBB- BBB Local TV & Radio First Niagara Bank 2-Nov LT Issuer Default Fitch BBB-*+ BBB- BanksFirst Niagara Bank 30-Oct LT Bank Deposits Moody's Baa1*+ Baa1 BanksFirst Niagara Bank 30-Oct Outlook S&P POS BanksGoldman Sachs 2-Nov LT Foreign Issuer S&P A-*- A- BanksHalliburton 3-Nov LT Foreign Issuer S&P A A*- Oilfield SvcsHalliburton 3-Nov Outlook S&P NEG Oilfield SvcsHewlett-Packard 30-Oct LT Foreign Issuer S&P BBB BBB+*- ComputersHP Inc 3-Nov LT Issuer Default Fitch BBB+ A-*- ComputersJPMorgan Chase 2-Nov LT Foreign Issuer S&P A*- A Banks



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Source: Janney FISR; FINRA TRACE; Moody’s; S&P; Fitch; ex-144a/REG S/sovereign debt; “*” in chart denotes under review

• Outflows from investment grade funds for the week ending November 6 totaled $358MM, per Lipper, versus the prior week’s $236MM of inflows. Inflows into high yield funds totaled $2.0B versus the prior week’s $2.0B of inflows.

Source: Janney FISR; FINRA TRACE; Moody’s; S&P; Fitch; ex-144a/REG S/sovereign debt; “*” in chart denotes under review

Ratings Changes: High Yield—Moody’s, S&P, and Fitch

Company Name

Date Rtg Type

AgencyCurrRtg

PriorRtg

Industry Type

Avon Products 5-Nov Outlook Fitch NEG Cosmetics MfgAvon Products 5-Nov LT Issuer Default Fitch B+ BB- Cosmetics MfgCentral Garden & Pet 4-Nov Outlook Moody's POS Garden Products MfgEagle Rock Energy Ptnrs 2-Nov LT Foreign Issuer S&P B+ B-*+ Oil & Gas E&PEXCO Resources 3-Nov LT Foreign Issuer S&P SD CCC+ Oil & Gas E&PForbes Energy Svcs 4-Nov LT Foreign Issuer S&P CCC+ B Drilling Levi Strauss 5-Nov LT Issuer Default Fitch BB BB- Apparel DesignLevi Strauss 5-Nov Outlook Fitch POS Apparel DesignMagnum Hunter Rsrcs 30-Oct LT Corp Family Moody's Caa3 Caa2 Oil & Gas E&PMagnum Hunter Rsrcs 30-Oct Outlook Moody's NEG Oil & Gas E&PMDC Hldgs 5-Nov LT Corp Family Moody's Ba2 Ba1*- HomebuildersMGM Resorts Int'l 30-Oct LT Corp Family Moody's B2*+ B2 CasinosPenn Nat'l Gaming 5-Nov LT Corp Family Moody's Ba3 Ba1 CasinosSEACOR Hldgs 4-Nov LT Foreign Issuer S&P B+ BB- Oil & Gas E&PSEACOR Hldgs 4-Nov Outlook S&P NEG Oil & Gas E&PVanguard Natural Rsrcs 3-Nov LT Foreign Issuer S&P B+ B+*+ Oil & Gas E&PWeatherford Int'l 3-Nov LT Foreign Issuer S&P BB+ BBB- Oilfield Svcs

Kellogg 5-Nov LT Foreign Issuer S&P BBB BBB+ Snack Food MfgKeyBank NA 2-Nov Outlook Fitch NEG BanksKeyBank NA 30-Oct Issuer Moody's A3*- A3 BanksKeyBank NA 30-Oct Outlook S&P NEG BanksKeyCorp 2-Nov Outlook Fitch NEG BanksKeyCorp 30-Oct Issuer Moody's Baa1*- Baa1 BanksKeyCorp 30-Oct Outlook S&P NEG BanksLear 2-Nov LT Foreign Issuer S&P BBB- BB+ Seating MfgLockheed Martin 2-Nov LT Foreign Issuer S&P BBB+ A-*- Defense PrimesMississippi Power 5-Nov Issuer Moody's Baa3 Baa2 Power GenerationMississippi Power 5-Nov Outlook Moody's NEG Power GenerationMorgan Stanley 2-Nov LT Foreign Issuer S&P A-*- A- BanksMorgan Stanley 2-Nov LT Local Issuer S&P A-*- A- BanksNabors Industries 3-Nov Outlook Fitch NEG DrillingNabors Industries 5-Nov LT Foreign Issuer S&P BBB- BBB DrillingSouthwest Airlines 30-Oct LT Issuer Default Fitch BBB+ BBB AirlinesState Street 2-Nov LT Foreign Issuer S&P A+*- A+ BanksTalisman Energy 30-Oct Outlook S&P NEG Oil & Gas E&PViacom 5-Nov LT Foreign Issuer S&P BBB*- BBB Cable NetworksWells Fargo 2-Nov LT Foreign Issuer S&P A+*- A+ Banks



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Analyst Certification

I, Jody Lurie, the Primarily Responsible Analyst for this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about any and all of the subject sectors, industries, securities, and issuers. No part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.

Janney Montgomery scott LLC (“Janney”) Debt Research Disclosure Legend

Janney may seek compensation for investment banking services for any company listed in this report in the next 3 months. the research analyst is compensated based on, in part, Janney’s profitability, which includes its investment banking revenues. additional information available upon request.

Definition of Issuer/Company outlooks

Janney FIS employs a rating system which considers the company, but not any specific debt or equity securities of the company and is not making a recommendation with regard to any specific debt securities of the company. Outlooks reflect our opinion about how credit factors of the company may affect its credit rating(s).

Positive: Janney FIS believes there are factors which point towards improving issuer or sector credit quality which may result in potential credit ratings upgrades

Stable: Janney FIS believes there are factors which point towards stable issuer or sector credit quality which are unlikely to result in either potential credit ratings upgrades or downgrades.

Cautious: Janney FIS believes there are factors which introduce the potential for declines in issuer or sector credit quality that may result in potential credit ratings downgrades.

Negative: Janney FIS believes there are factors which point towards weakening in issuer credit quality that will likely result in credit ratings downgrades.

Definition of sector/Industry Ratings

Overweight: Janney FIS expects the target asset class or sector to outperform the comparable benchmark (below) in its asset class in terms of total return.

Marketweight: Janney FIS expects the target asset class or sector to perform in line with the comparable benchmark (below) in its asset class in terms of total return.

Underweight: Janney FIS expects the target asset class or sector to underperform the comparable benchmark (below) in its asset class in terms of total return.

Janney FIs outlooks Distribution as of 11/06/2015

Benchmarks

Asset Classes: Janney FIS ratings for domestic fixed income asset classes including Treasuries, Agencies, Mortgages, Investment Grade Credit, High Yield Credit, and Municipals employ the “Barclay’s U.S. Aggregate Bond Market Index” as a benchmark. Treasuries: Janney FIS ratings employ the “Barclay’s U.S. Treasury Index” as a benchmark. Agencies: Janney FIS ratings employ the “Barclay’s U.S. Agency Index” as a benchmark. Mortgages: Janney FIS ratings employ the “Barclay’s U.S. MBS Index” as a benchmark. Investment Grade Credit: Janney FIS ratings employ the “Barclay’s U.S. Credit Index” as a benchmark. High Yield Credit: Janney FIS ratings for employ “Barclay’s U.S. Corporate High Yield Index” as a benchmark. Municipals: Janney FIS ratings employ the “Barclay’s Municipal Bond Index” as a benchmark.

Disclaimer

Janney or its affiliates may from time to time have a proprietary position in the various debt obligations of the issuers mentioned in this publication.

Unless otherwise noted, market data is from Bloomberg, Barclays, and Janney Fixed Income Strategy & Research (Janney FIS).

This report is the intellectual property of Janney Montgomery Scott LLC (Janney) and may not be reproduced, distributed, or published by any person for any purpose without Janney’s express prior written consent.

This report has been prepared by Janney and is to be used for informational purposes only. In no event should it be construed as a solicitation or offer to purchase or sell a security. The information presented herein is taken from sources believed to be reliable, but is not guaranteed by Janney as to accuracy or completeness. Any issue named or rates mentioned are used for illustrative purposes only, and may not represent the specific features or securities available at a given time. Preliminary Official Statements, Final Official Statements, or Prospectuses for any new issues mentioned herein are available upon request. The value of and income from investments may vary because of changes in interest rates, foreign exchange rates, securities prices, market indexes, as well as operational or financial conditions of issuers or other factors. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. We have no obligation to tell you when opinions or information contained in Janney FIS publications change.

Janney Fixed Income Strategy does not provide individually tailored investment advice and this document has been prepared without regard to the circumstances and objectives of those who receive it. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. For investment advice specific to your individual situation, or for additional information on this or other topics, please contact your Janney Financial Consultant and/or your tax or legal advisor.

IB serv./Past 12 mos.outlook count Percent count PercentPositive 9 20.5 0 0Stable 27 61.4 0 0Cautious 7 15.9 0 0Negative 1 2.3 0 0

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