Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB....
Transcript of Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB....
![Page 1: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/1.jpg)
Wall Street Update
May 17, 2016
Gabe GrosbergDirectorRegulated Utilities
Copyright © 2016 by S&P Global. All rights reserved.
![Page 2: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/2.jpg)
Utilities Ratings Performance & Trends
Private and Confidential 2
![Page 3: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/3.jpg)
U.S. Regulated Utilities
0
10
20
30
40
50
60
70
AA- A+ A A- BBB+ BBB BBB- BB+ BB
Ratings Distribution as of April 25, 2016
Private and Confidential 3
![Page 4: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/4.jpg)
Data as of 04/25/2016
U.S. Regulated Utilities – Outlook and CreditWatch
Positive & CW Pos 14%
Negative & CW Neg 14%
Developing & CW Dev 2%Stable70%
Private and Confidential 4
![Page 5: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/5.jpg)
U.S. Regulated Utilities - 2015/2016 Upgrades / Positive Outlooks
Company Current Rating Action Date of Action
Avangrid Inc. BBB+ Upgrade April 2016
UIL Holdings Corporation BBB+ Upgrade April 2016
IPALCO Enterprises, Inc. BBB- Upgrade April 2016
Berkshire Hathaway Energy Company A Upgrade February 2016
SourceGas LLC BBB Upgrade February 2016
PNM Resources, Inc. BBB+ Upgrade December 2015
Green Mountain Power Corporation A- Upgrade December 2015
PG&E Corporation BBB Positive Outlook October 2015
Middlesex Water Co. A Upgrade August 2015
AGL Resources Inc. BBB+ Positive Outlook August 2015
NiSource Inc. BBB+ Upgrade June 2015
PPL Corporation A- Upgrade June 2015
American Water Works Company, Inc. A Upgrade May 2015
Eversource Energy A Upgrade April 2015
Duke Energy Corporation A- Upgrade April 2015
Entergy Corporation BBB Positive Outlook March 2015
Private and Confidential 5
![Page 6: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/6.jpg)
U.S. Regulated Utilities - 2015/2016 Downgrades / Negative or Developing Outlooks
Company Name Current Rating Action Outlook Action Date
FirstEnergy Corp. BBB- Negative Outlook April 2016
Cleco Corporation BBB- Downgrade April 2016
Tucson Electric Power Company BBB+ Negative Outlook February 2016
The Empire District Electric Company BBB Negative Outlook February 2016
Central Hudson Gas & Electric Corp. A Negative Outlook February 2016
Dominion Resources, Inc. BBB+ Downgrade February 2016
CenterPoint Energy, Inc. A- Negative Outlook January 2016
SEMCO Energy, Inc. BBB Negative Outlook December 2015
Consolidated Edison, Inc. A- Negative Outlook November 2015
Duke Energy Corporation A- Negative Outlook October 2015
Keyspan Gas East Corporation A- Downgrade October 2015
TECO Energy, Inc. BBB+ Negative Outlook September 2015
Southern Company A- Negative Outlook August 2015
Southern Company A- Downgrade August 2015
Private and Confidential 6
![Page 7: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/7.jpg)
S&P’s Corporate Ratings Criteria
Private and Confidential 7
![Page 8: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/8.jpg)
The Corporate Ratings Criteria Framework
Private and Confidential 8
![Page 9: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/9.jpg)
U.S. Regulated Utilities Financial and Business Risk Profile
Private and Confidential 9
Financial Risk Profile
Minimal
Modest
Intermediate
Significant
Aggressive
Business Risk Profile
Excellent
Strong
Satisfactory
![Page 10: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/10.jpg)
Combining the Business and Financial Risk Profiles
Financial Risk Profile
Business Risk Profile
Minimal Modest Intermediate Significant Aggressive Highly Leveraged
Excellent aaa/aa+ aa a+/a a- bbb bbb-/bb+
Strong aa/aa- a+/a a-/bbb+ bbb bb+ bb
Satisfactory a/a- bbb+ bbb/bbb- bbb-/bb+ bb b+
Fair bbb/bbb- bbb- bb+ bb bb- b
Weak bb+ bb+ bb bb- b+ b/b-
Vulnerable bb- bb- bb-/b+ b+ B b-
Private and Confidential 10
![Page 11: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/11.jpg)
U.S. Regulated Utilities
Financial Risk Profile
Business Risk Profile
Minimal Modest Intermediate Significant Aggressive Highly Leveraged
Excellent 0% 2% 19% 51% 3% 0%
Strong 1% 0% 1% 19% 1% 0%
Satisfactory 0% 0% 1% 1% 0% 0%
Fair 0% 0% 0% 0% 0% 0%
Weak 0% 0% 0% 0% 0% 0%
Vulnerable 0% 0% 0% 0% 0% 0%
Private and Confidential 11
![Page 12: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/12.jpg)
Combining the Business and Financial Risk Profiles
Financial Risk Profile
Business Risk Profile
Minimal Modest Intermediate Significant Aggressive Highly Leveraged
Excellent aaa/aa+ aa a+/a a- bbb bbb-/bb+
Strong aa/aa- a+/a a-/bbb+ bbb bb+ bb
Satisfactory a/a- bbb+ bbb/bbb- bbb-/bb+ bb b+
Fair bbb/bbb- bbb- bb+ bb bb- b
Weak bb+ bb+ bb bb- b+ b/b-
Vulnerable bb- bb- bb-/b+ b+ B b-
Private and Confidential 12
![Page 13: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/13.jpg)
Key Credit Trends in 2016
Private and Confidential 13
![Page 14: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/14.jpg)
Bonus Depreciation
Private and Confidential 14
![Page 15: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/15.jpg)
• In December 2015, Congress passed PATH Act authorizing bonus depreciation through 2019.
• Act allows investor-owned U.S. utilities to continue to depreciate capital investments at accelerated rates.
• Also extends Investment Tax Credits for wind and solar projects.
5 Year Extension of Bonus Depreciation
Bonus Depreciation Rates, 2015 - 2019
2015 2016 2017 2018 2019
50% 50% 50% 40% 30%
Private and Confidential 15
![Page 16: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/16.jpg)
• Bonus depreciation and low interest rates have led to a divergence in EBITDA and FFO• Based on our analysis, S&P anticipates that the extension of bonus depreciation will
increase the average utility’s FFO/debt by 300 basis points in 2016 – 2017
Effect of Bonus Depreciation
100%
120%
140%
160%
180%
200%
220%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Rela
tive
Gro
wth
FFO And EBITDA For U.S. Regulated Utilities
FFO
EBITDA
Private and Confidential 16
![Page 17: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/17.jpg)
Capital Expenditures
Private and Confidential 17
![Page 18: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/18.jpg)
Increasing Growth in Capital Spending
$0
$20
$40
$60
$80
$100
$120
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capital Spending - US Regulated Utilites ($-Billion)
10% CAGR
Private and Confidential 18
Source: S&P Capital IQ
![Page 19: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/19.jpg)
Mergers and Acquisitions
Private and Confidential 19
![Page 20: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/20.jpg)
2016 Is on Track to Surpass Recent Years
0
10
20
30
40
50
60
2013 2014 2015 2016 (Q1)
Transaction Value of Major Announced U.S. Utilities M&As, USD Billions
Private and Confidential 20
Source: S&P Capital IQ
![Page 21: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/21.jpg)
Target Acquirer Year Announced Value (Billions) Implied EV/EBITDA (x) S&P Rating Reaction to Purchaser
ITC Holdings Corp. Fortis Inc. 2016 11.5 16.4 Outlook Revised to Negative
The Empire District Electric Company Liberty Utilities (Central) Co. 2016 2.4 10.9 Outlook Revised to Negative
Questar Corporation Dominion Resources, Inc. 2016 6.1 9.67 Outlook Revised to Negative
Oncor Electric Delivery Company, LLC Hunt Consolidated, Inc. 2015 18.9 12.0 N/A
SourceGas Holdings LLC Black Hills Utility Holdings, Inc. 2015 1.7 N/A Rating Affirmed
UIL Holdings Corporation Avangrid, Inc. 2015 4.8 11.84 N/A
Piedmont Natural Gas Co. Inc. Duke Energy Corporation 2015 6.6 14.82 Outlook Revised to Negative
TECO Energy, Inc. Emera Incorporated 2015 10.4 11.6 Outlook Revised to Negative
AGL Resources Inc. Southern Company 2015 12.0 9.77 Outlook Revised to Negative
Hawaiian Electric Industries Inc. NextEra Energy, Inc. 2014 4.6 8.46 Ratings Affirmed
Cleco Corporation Macquarie Infrastructure Partners Inc.. 2014 4.7 10.36 N/A
Integrys Holding, Inc. WEC Energy Group, Inc. 2014 9.1 10.09 Outlook Revised to Negative
Pepco Holdings, Inc. Exelon Corp. 2014 12.6 10.33 Ratings Affirmed
Philadelphia Gas Works UIL Holdings Corporation 2014 3.0 19.13 N/A
NV Energy, Inc. Berkshire Hathaway Energy Company 2013 10.7 8.87 N/AUNS Energy Corporation Fortis Inc. 2013 4.3 9.26 Outlook Revised to Negative
Notable Utility M&A Transactions, 2013 - Present
Private and Confidential 21
Source: S&P Capital IQ
![Page 22: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/22.jpg)
Key drivers of rising M&A:
• Slowing economic growth
• Conservation and distributed generation
• Low interest rate environment
• Rising value of utilities
Drivers of Consolidation in the U.S. Utility Sector
Private and Confidential 22
![Page 23: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/23.jpg)
U.S. Housing Starts
Private and Confidential 23
Source: S&P Capital IQ
1.9 mm
0.91 mm
0.00
500,000.00
1.00mm
1.50mm
2.00mm
2.50mm
3.00mm
United States - Total Private Housing Starts S&P Forecast 12 Year Average 9 Year Average
![Page 24: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/24.jpg)
Year-Over-Year Annual U.S. GDP Growth
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Real GDP Growth S&P Forecast Linear (Real GDP Growth)
Private and Confidential 24
Source: S&P Capital IQ
![Page 25: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/25.jpg)
U.S. GDP Growth vs. Growth in Electricity Sales
1.29% 0.60%
-5.00%
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
201520142013201220112010200920082007200620052004200320022001200019991998199719961995
US Real GDP Growth (YoY%) Megawatt Hours of Electricity Sold (YoY%)
Fifteen Year Average Sales Increase (YoY%) Five Year Average Sales Increase (YoY%)
Private and Confidential 25
Source: S&P Capital IQ and U.S. Energy Information Administration
![Page 26: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/26.jpg)
Solar Generation Year-Over-Year Growth
1,212 1,818
4,327
9,036
17,691
26,473
36.0%
50.0%
138.0%
108.8%
102.8%
49.6%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
-
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012 2013 2014 2015
Meg
awat
thou
rs (1
,000
's)
U.S. Solar Generation
Solar YoY % Change
Private and Confidential 26
Source: U.S. Energy Information Administration
![Page 27: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/27.jpg)
Total U.S. Megawatt Hours Sold (millions)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Private and Confidential 27
Source: U.S. Energy Information Administration
![Page 28: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/28.jpg)
Rising Value of Utilities
Private and Confidential 28
Source: S&P Capital IQ
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
S&P 500 Electric Utilities Index, Total Return Market-Cap Weighted Index of Listed MLPs
![Page 29: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/29.jpg)
Utility Transactions - Enterprise Value to EBITDA
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
$0
$10
$20
$30
$40
$50
$60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Transaction Value ($ billion) Weighted Average Implied EV/EBITDA
Private and Confidential 29
Source: S&P Capital IQ
![Page 30: Wall Street Update Gabe Grosberg Regulated Utilities · The Empire District Electric Company; BBB. Negative Outlook February 2016 Central Hudson Gas & Electric Corp. A. Negative Outlook](https://reader034.fdocuments.in/reader034/viewer/2022042303/5ecef9c4eae4ba739d1f4c78/html5/thumbnails/30.jpg)
Copyright © 2016 by Standard & Poor’s Financial Services LLC. All rights reserved.
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. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
AustraliaStandard & Poor's (Australia) Pty. Ltd. holds Australian financial services license number 337565 under the Corporations Act 2001. Standard & Poor’s credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).
STANDARD & POOR’S, S&P, CREDITPRO and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC.Private and Confidential 30