European Corporate Rating Scores Update: July 1, 2014
Primary Credit Analyst: Guy Deslondes, Milan (39) 02-72111-213; [email protected]
Secondary Contacts: Tobias Mock, CFA, Frankfurt (49) 69-33-999-126; [email protected] Peter Tuving, Stockholm (46) 8-440-5913; [email protected]
Table Of Contents
Analysis Of EMEA Corporate Ratings And Related Scores
Distribution Of Modifiers For EMEA Corporates
Breakdown Of European Corporate Rating Scores By Industry
Related Criteria And Research
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Standard & Poor's Ratings Services is updating the rating component scores for its public corporate credit ratings in Europe, the Middle East, and Africa (EMEA). This article follows a similar report published on Jan. 22, 2014, after the publication of our "Corporate Methodology," on Nov. 19, 2013, on RatingsDirect. It lists the scores for 720 public ratings in EMEA that are in the scope of the new corporate rating methodology and provides charts that show the distribution of all rating component scores. We believe that the list and charts enhance benchmarking across industries and rating levels for all market participants.
We disclose these scores in line with the information we provide in our rating research publications, such as research updates and full analyses. By releasing all scores for public corporate ratings in EMEA, Standard & Poor's confirms its commitment to deliver greater transparency and insight into the ratings process and simplify access for all market participants. We are using a single report, organized alphabetically by industry sector, which we intend to update regularly (Watch the related CreditMatters TV segments titled "S&P Enhances Transparency On European Corporate Ratings" and "S&P Renforce La Transparence Sur Les Notations D'Entreprises Européennes" dated Jan. 31, 2014.).
The scores reflect the building blocks of the corporate ratings framework (see chart 1). Modifiers and group rating methodology/government-related entity components are indicated only where they have an effect, either positive or negative, on the rating.
This list reflects corporate credit ratings and scores as of July 1, 2014; it will not be systematically updated for future rating actions or score revisions. Furthermore, the list only discloses scores for the main rated entity of larger corporate groups in order to keep it concise; this could be the case, for instance, when ratings on subsidiaries or holding companies are linked to those on their related parent companies.
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Analysis Of EMEA Corporate Ratings And Related Scores
The charts below provide a detailed breakdown of corporate ratings and related scores for all EMEA corporate entities that fall under the scope of our new corporate criteria. For statistical completeness, the chart distributions include confidential and private ratings, which are otherwise excluded from the comprehensive list of rating scores.
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Distribution Of Modifiers For EMEA Corporates
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Breakdown Of European Corporate Rating Scores By Industry
Breakdown Of European Corporate Rating Scores*
As Of July 3, 2014 Financial Business Risk Profile Risk Profile
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§)
AEROSPACE & DEFENSE BAE Systems PLC 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk
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Breakdown Of European Corporate Rating Scores* (cont.) European Aeronautic 3. 2. Strong 2. Strong 1. Minimal aa- Financial Policy: Yes A Defence and Space Co. Intermediate Negative (-1 notch) N.V. Risk Comparable Ratings Analysis: Negative (-1 notch) Finmeccanica SpA 3. 4. Fair 4. Fair 4. Significant bb Comparable Ratings Yes BB+ Intermediate Analysis: Positive (+1 Risk notch) Israel Aerospace 3. 5. Weak 5. Weak 4. Significant bb- Yes BBB- Industries Ltd. Intermediate Risk Photonis Technologies 3. 3. 3. 6. Highly b+ B+ SAS Intermediate Satisfactory Satisfactory Leveraged Risk Rolls-Royce PLC 3. 3. 3. 1. Minimal a A Intermediate Satisfactory Satisfactory Risk Thales S.A. 3. 3. 3. 2. Modest bbb+ Yes BBB+ Intermediate Satisfactory Satisfactory Risk Ural Optical & 4. 5. Weak 5. Weak 6. Highly b Capital Structure: Yes B- Mechanical Plant JSC Moderately Leveraged Negative (-1 notch) High Risk Average scores for 3.1 3.4 3.4 3.4 aerospace & defense
AGRIBUSINESS & COMMODITY FOODS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Albain Midco Norway 3. 5. Weak 5. Weak 6. Highly b B AS Intermediate Leveraged Risk Barry Callebaut AG 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Kerry Group PLC 3. 3. 3. 3. bbb Comparable Ratings BBB+ Intermediate Satisfactory Satisfactory Intermediate Analysis: Positive (+1 Risk notch) Roquette Freres 3. 3. 3. 1. Minimal a- A- Intermediate Satisfactory Satisfactory Risk Suedzucker AG 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Tate & Lyle PLC 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Average scores for 3.0 3.3 3.3 3.3 agribusiness & commodity foods
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Breakdown Of European Corporate Rating Scores* (cont.)
AUTO OEMs
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) AB Volvo 4. 3. 3. 3. bbb- Comparable Ratings BBB Moderately Satisfactory Satisfactory Intermediate Analysis: Positive (+1 High Risk notch) Aston Martin Holdings 4. 5. Weak 5. Weak 6. Highly b- Comparable Ratings B (UK) Ltd. Moderately Leveraged Analysis: Positive (+1 High Risk notch) BMW AG 4. 1. Excellent 2. Strong 1. Minimal aa- Comparable Ratings A+ Moderately Analysis: Negative (-1 High Risk notch) Daimler AG 4. 3. 3. 1. Minimal a- A- Moderately Satisfactory Satisfactory High Risk Fiat SpA 4. 4. Fair 4. Fair 5. bb- BB- Moderately Aggressive High Risk Jaguar Land Rover 4. 4. Fair 4. Fair 3. bb+ Yes BB Automotive PLC Moderately Intermediate High Risk Peugeot S.A. 4. 5. Weak 5. Weak 5. b+ B+ Moderately Aggressive High Risk Piaggio & C. SpA 4. 4. Fair 4. Fair 5. bb- BB- Moderately Aggressive High Risk Renault S.A. 4. 4. Fair 4. Fair 3. bb+ BB+ Moderately Intermediate High Risk Scania (publ.) AB 4. 2. Strong 3. 1. Minimal a- Yes A- Moderately Satisfactory High Risk Volkswagen AG 4. 1. Excellent 2. Strong 2. Modest a Comparable Ratings A- Moderately Analysis: Negative (-1 High Risk notch) Average scores for 4.0 3.3 3.5 3.2 auto OEM
AUTO SUPPLIERS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Autoliv Inc. 4. 3. 3. 1. Minimal a- A- Moderately Satisfactory Satisfactory High Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Compagnie Generale 4. 1. Excellent 2. Strong 3. bbb+ BBB+ des Etablissements Moderately Intermediate Michelin S.C.A. High Risk Continental AG 4. 2. Strong 3. 3. bbb BBB Moderately Satisfactory Intermediate High Risk Falcon (BC) Germany 4. 4. Fair 4. Fair 6. Highly b B Holding 3 GmbH Moderately Leveraged High Risk Gestamp Automocion 4. 4. Fair 4. Fair 4. Significant bb BB S.A. Moderately High Risk GKN Holdings PLC 4. 3. 3. 3. bbb- Financial Policy: BB+ Moderately Satisfactory Satisfactory Intermediate Negative (-1 notch) High Risk Knorr-Bremse AG 4. 2. Strong 3. 1. Minimal a- A- Moderately Satisfactory High Risk Robert Bosch GmbH 4. 2. Strong 3. 1. Minimal a Financial Policy: AA- Moderately Satisfactory Positive (+1 notch) High Risk Comparable Ratings Analysis: Positive (+1 notch) Schaeffler AG 4. 2. Strong 3. 5. bb Comparable Ratings BB- Moderately Satisfactory Aggressive Analysis: Negative (-1 High Risk notch) Stabilus SA 4. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Moderately Aggressive Analysis: Negative (-1 High Risk notch) Valeo S.A. 4. 3. 3. 3. bbb BBB Moderately Satisfactory Satisfactory Intermediate High Risk Average scores for 4.0 2.7 3.2 3.2 auto suppliers
BRANDED NONDURABLES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Agrokor d.d. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Anadolu Efes Biracilik 3. 3. 3. 3. bbb- No BBB- ve Malt Sanayii AS Intermediate Satisfactory Satisfactory Intermediate Risk Anheuser-Busch InBev 2. Low Risk 1. Excellent 1. Excellent 3. a Yes A S.A./N.V. Intermediate Bakkavor Finance 2 2. Low Risk 5. Weak 5. Weak 6. Highly b- B- PLC Leveraged Boparan Holdings Ltd. 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Leveraged Analysis: Positive (+1 notch)
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Breakdown Of European Corporate Rating Scores* (cont.) British American 2. Low Risk 2. Strong 2. Strong 3. a- A- Tobacco Plc Intermediate Campofrio Food Group 2. Low Risk 5. Weak 5. Weak 5. b+ Yes BB- S.A. Aggressive Charger OpCo BV 2. Low Risk 3. 3. 5. bb BB Satisfactory Satisfactory Aggressive Coca-Cola HBC AG 2. Low Risk 3. 3. 3. bbb Yes bbb+ Satisfactory Satisfactory Intermediate D.E MASTER 2. Low Risk 3. 3. 6. Highly b+ Yes B+ BLENDERS 1753 N.V Satisfactory Satisfactory Leveraged Danone 2. Low Risk 2. Strong 2. Strong 3. a- A- Intermediate Diageo PLC 2. Low Risk 1. Excellent 1. Excellent 4. Significant a- A- FAGE International S.A 2. Low Risk 5. Weak 5. Weak 5. b+ Comparable Ratings Yes B Aggressive Analysis: Negative (-1 notch) Heineken N.V. 2. Low Risk 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Henkel AG & Co. KGaA 2. Low Risk 2. Strong 2. Strong 1. Minimal aa- Financial Policy: A Negative (-1 notch) Comparable Ratings Analysis: Negative (-1 notch) Iglo Foods Holdings 2. Low Risk 3. 3. 6. Highly b+ B+ Ltd. Satisfactory Satisfactory Leveraged Imperial Tobacco Group 2. Low Risk 2. Strong 2. Strong 4. Significant bbb BBB PLC Kering S.A. 2. Low Risk 2. Strong 2. Strong 3. bbb+ Financial Policy: BBB Intermediate Negative (-1 notch) Lion / Seneca France 2 2. Low Risk 4. Fair 4. Fair 6. Highly b B SAS Leveraged Lion/Gem Luxembourg 2. Low Risk 5. Weak 5. Weak 6. Highly b- B- 3 S.a.r.l. Leveraged Luxottica Group SpA 2. Low Risk 2. Strong 2. Strong 2. Modest a Comparable Ratings Yes A- Analysis: Negative (-1 notch) LVMH Moet Hennessy 2. Low Risk 1. Excellent 1. Excellent 2. Modest aa Financial Policy: Yes A+ Louis Vuitton S.A. Negative (-1 notch) Comparable Ratings Analysis: Negative (-1 notch) Marcolin SpA 2. Low Risk 6. Vulnerable 6. 6. Highly b- B- Vulnerable Leveraged Nestle S.A. 2. Low Risk 1. Excellent 1. Excellent 2. Modest aa AA Oak Leaf BV 2. Low Risk 3. 3. 6. Highly b+ Yes B+ Satisfactory Satisfactory Leveraged Ontex IV S.A. 2. Low Risk 4. Fair 4. Fair 6. Highly b B Leveraged Pernod Ricard S.A. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Analysis: Negative (-1 notch) Philip Morris 2. Low Risk 2. Strong 2. Strong 2. Modest a A International Inc.
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Breakdown Of European Corporate Rating Scores* (cont.) Premier Foods PLC 2. Low Risk 4. Fair 4. Fair 6. Highly b B Leveraged R&R Ice Cream PLC 2. Low Risk 4. Fair 4. Fair 6. Highly b B Leveraged Reckitt Benckiser Group 2. Low Risk 1. Excellent 1. Excellent 2. Modest aa Financial Policy: A+ PLC Negative (-1 notch) Comparable Ratings Analysis: Negative (-1 notch) Refresco Gerber BV 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Leveraged Analysis: Positive (+1 notch) Remy Cointreau S.A. 2. Low Risk 4. Fair 4. Fair 2. Modest bbb- BBB- SABMiller PLC 2. Low Risk 2. Strong 2. Strong 3. a- Comparable Ratings BBB+ Intermediate Analysis: Negative (-1 notch) Safilo Group SpA 2. Low Risk 5. Weak 5. Weak 4. Significant bb- Financial Policy: B+ Negative (-1 notch) Svenska Cellulosa 2. Low Risk 2. Strong 2. Strong 3. a- A- Aktiebolaget SCA Intermediate Swedish Match AB 2. Low Risk 3. 3. 3. bbb BBB Satisfactory Satisfactory Intermediate Unilever PLC 2. Low Risk 1. Excellent 1. Excellent 3. a+ A+ Intermediate United Biscuits Holdco 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Ltd. Leveraged Analysis: Positive (+1 notch) WEPA Hygieneprodukte 2. Low Risk 4. Fair 4. Fair 5. bb- BB- GmbH Aggressive Z beta Sarl 2. Low Risk 5. Weak 5. Weak 6. Highly b B Leveraged Average scores for 2.0 3.0 3.0 4.2 branded nondurables
BUILDING MATERIALS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Braas Monier Building 3. 5. Weak 5. Weak 6. Highly b B Group S.A Intermediate Leveraged Risk Buzzi Unicem SpA 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Compagnie de 3. 2. Strong 2. Strong 4. Significant bbb BBB Saint-Gobain Intermediate Risk CRH PLC 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Geberit AG 3. 3. 3. 1. Minimal a A Intermediate Satisfactory Satisfactory Risk Holcim Ltd 3. 2. Strong 2. Strong 4. Significant bbb BBB Intermediate Risk Italcementi SpA 3. 3. 3. 5. bb Comparable Ratings Yes BB+ Intermediate Satisfactory Satisfactory Aggressive Analysis: Positive (+1 Risk notch) Kerneos Tech Group 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ SAS Intermediate Leveraged Analysis: Positive (+1 Risk notch) Lafarge S.A. 3. 2. Strong 2. Strong 5. bb+ BB+ Intermediate Aggressive Risk Legrand S.A. 3. 2. Strong 2. Strong 2. Modest a Financial Policy: A- Intermediate Negative (-1 notch) Risk Paroc Group Oy 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Rexel S.A. 3. 3. 3. 4. Significant bb+ Comparable Ratings BB Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Risk notch) Sanitec Oyj 3. 4. Fair 4. Fair 4. Significant bb Comparable Ratings BB- Intermediate Analysis: Negative (-1 Risk notch) Titan Cement Co. S.A. 3. 4. Fair 4. Fair 5. bb- Management & BB Intermediate Aggressive Governance: Strong (+1 Risk notch) Ultima Lux S.a.r.l. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Wuerth GmbH & Co. 3. 2. Strong 2. Strong 2. Modest a Capital Structure: A KG, Adolf Intermediate Positive (+1 notch) Risk Management & Governance: Fair (-1 notch) Xella International S.A. 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk Average scores for 3.0 3.1 3.1 4.3 building materials
BUSINESS AND CONSUMER SERVICES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Adecco S.A. 3. 3. 3. 2. Modest bbb+ BBB+ Intermediate Satisfactory Satisfactory Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Befesa Zinc S.A.U. 3. 4. Fair 4. Fair 5. bb- Comparable Ratings Yes B Intermediate Aggressive Analysis: Negative (-1 Risk notch) Bilbao (Luxembourg) 3. 4. Fair 4. Fair 6. Highly b B S.A. Intermediate Leveraged Risk Brenntag AG 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Intermediate Analysis: Negative (-1 Risk notch) Cegedim S.A. 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk Cerved Group SpA 3. 3. 3. 6. Highly b+ Comparable Ratings B Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Risk notch) Compass Group PLC 3. 2. Strong 2. Strong 2. Modest a A Intermediate Risk Cucina Acquisition (UK) 3. 5. Weak 5. Weak 6. Highly b- B- Ltd. Intermediate Leveraged Risk Edenred S.A. 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk Elior S.C.A 3. 3. 3. 5. bb BB Intermediate Satisfactory Satisfactory Aggressive Risk Emerald 2 Limited 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Equiniti Cleanco Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Experian Finance PLC 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk FieldLink N.V. 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk G4S PLC 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Intermediate Analysis: Negative (-1 Risk notch) Galaxy Finco Ltd. 3. 4. Fair 4. Fair 6. Highly b B (Domestic & General) Intermediate Leveraged Risk Holdelis SAS 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk HSS Financing Plc 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk Hydra Dutch Holdings 2 3. 4. Fair 4. Fair 6. Highly b B B.V. Intermediate Leveraged Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Hyperion Insurance 3. 4. Fair 4. Fair 6. Highly b B Group Ltd. Intermediate Leveraged Risk ISS A/S 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Intermediate Analysis: Negative (-1 Risk notch) IVS Group SA 3. 4. Fair 4. Fair 5. bb- BB- Intermediate Aggressive Risk La Financiere Atalian 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ SA Intermediate Leveraged Analysis: Positive (+1 Risk notch) Manutencoop Facility 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Management SpA Intermediate Leveraged Analysis: Positive (+1 Risk notch) Parts Holdings (France) 3. 5. Weak 5. Weak 5. b+ B+ SAS Intermediate Aggressive Risk PHOENIX 3. 3. 3. 4. Significant bb+ Comparable Ratings BB Pharmahandel GmbH & Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Co. KG Risk notch) Prosegur Compania De 3. 3. 3. 3. bbb BBB Seguridad S.A. Intermediate Satisfactory Satisfactory Intermediate Risk RAC Finance (Holdings) 3. 3. 3. 6. Highly b+ B+ Ltd. Intermediate Satisfactory Satisfactory Leveraged Risk Redtop Acquisitions Ltd 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Rentokil Initial PLC 3. 3. 3. 3. bbb- BBB- Intermediate Satisfactory Satisfactory Intermediate Risk Rhino Bondco SpA 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Saga plc 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Intermediate Leveraged Analysis: Positive (+1 Risk notch) Securitas AB 3. 2. Strong 2. Strong 4. Significant bbb BBB Intermediate Risk Selecta Group BV 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Intermediate Leveraged Analysis: Positive (+1 Risk notch) Sodexo 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk Spie Bondco 3 S.C.A. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Stork Technical Services 3. 5. Weak 5. Weak 6. Highly b- B- Holding B.V. Intermediate Leveraged Risk
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Breakdown Of European Corporate Rating Scores* (cont.) TeamSystem Holding 3. 4. Fair 4. Fair 6. Highly b Financial Policy: FS-6 B- SpA Intermediate Leveraged (minus) (-1 notch) Risk Techem GmbH 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk TMF Group Holding 3. 4. Fair 4. Fair 6. Highly b B B.V. Intermediate Leveraged Risk Trionista TopCo GmbH 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk UK Power Networks 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Services Holdings Ltd. Intermediate Risk Verisure Holding AB 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Average scores for 3.0 3.5 3.5 5.1 business & consumer services
CAPITAL GOODS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) ABB Ltd. 3. 2. Strong 2. Strong 2. Modest a A Intermediate Risk Alfa Laval AB 3. 2. Strong 2. Strong 3. a- Comparable Ratings BBB+ Intermediate Intermediate Analysis: Negative (-1 Risk notch) Alstom S.A. 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Ashtead Group PLC 3. 4. Fair 4. Fair 4. Significant bb BB Intermediate Risk Assa Abloy AB 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk Atlas Copco AB 3. 2. Strong 2. Strong 2. Modest a A Intermediate Risk Bilfinger SE 3. 3. 3. 2. Modest bbb+ BBB+ Intermediate Satisfactory Satisfactory Risk Borets International Ltd. 4. 4. Fair 4. Fair 4. Significant bb BB Moderately High Risk Bravida Holding AB 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk
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Breakdown Of European Corporate Rating Scores* (cont.) DH Services 3. 5. Weak 5. Weak 6. Highly b B Luxembourg S.a.r.l Intermediate Leveraged Risk Dometic Group AB 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Doncasters Group Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Faenza Acquisition 2. Low Risk 4. Fair 4. Fair 6. Highly b B GmbH Leveraged HellermannTyton Group 3. 4. Fair 4. Fair 4. Significant bb BB PLC Intermediate Risk Heraeus Holding GmbH 3. 3. 3. 2. Modest bbb+ BBB+ Intermediate Satisfactory Satisfactory Risk HMS Hydraulic 4. 5. Weak 5. Weak 5. b+ Comparable Ratings B Machines & Systems Moderately Aggressive Analysis: Negative (-1 Group PLC High Risk notch) KION Material Handling 3. 4. Fair 4. Fair 4. Significant bb Comparable Ratings BB- GmbH Intermediate Analysis: Negative (-1 Risk notch) Koninklijke Philips N.V. 2. Low Risk 3. 3. 2. Modest bbb+ Diversification/portfolio A- Satisfactory Satisfactory effect: Moderate (+1 notch) KraussMaffei Group 3. 5. Weak 5. Weak 6. Highly b Yes B GmbH Intermediate Leveraged Risk KUKA AG 3. 5. Weak 5. Weak 4. Significant bb- BB- Intermediate Risk Loxam SAS 3. 4. Fair 4. Fair 4. Significant bb Comparable Ratings BB- Intermediate Analysis: Negative (-1 Risk notch) Metso Corp. 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Minimax Viking GmbH 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Munters AB 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk Nexans S.A. 3. 4. Fair 4. Fair 5. bb- BB- Intermediate Aggressive Risk OAO TMK 4. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Moderately Aggressive Analysis: Negative (-1 High Risk notch) OJSC European Bearing 4. 5. Weak 5. Weak 1. Minimal bb+ Financial Policy: BB- Corporation Moderately Negative (-2 notches) High Risk Peri GmbH 3. 4. Fair 4. Fair 3. bb+ Comparable Ratings BBB- Intermediate Intermediate Analysis: Positive (+1 Risk notch)
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Breakdown Of European Corporate Rating Scores* (cont.) Sandvik AB 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Schneider Electric S.A. 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk SGL Carbon SE 3. 5. Weak 5. Weak 6. Highly b Financial Policy: B+ Intermediate Leveraged Positive (+1 notch) Risk Siemens AG 3. 2. Strong 2. Strong 2. Modest a Diversification/portfolio A+ Intermediate effect: Moderate (+1 Risk notch) SKF, AB 3. 3. 3. 3. bbb Comparable Ratings BBB+ Intermediate Satisfactory Satisfactory Intermediate Analysis: Positive (+1 Risk notch) Smiths Group PLC 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk Technip 3. 3. 3. 2. Modest bbb+ BBB+ Intermediate Satisfactory Satisfactory Risk The Weir Group PLC 3. 3. 3. 3. bbb Comparable Ratings BBB+ Intermediate Satisfactory Satisfactory Intermediate Analysis: Positive (+1 Risk notch) Average scores for 3.1 3.6 3.6 3.9 capital goods
COMMODITY CHEMICALS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Carmeuse Holding S.A. 4. 3. 3. 4. Significant bb+ Comparable Ratings BB Moderately Satisfactory Satisfactory Analysis: Negative (-1 High Risk notch) Ciech S.A. 4. 5. Weak 5. Weak 5. b+ Financial Policy: B Moderately Aggressive Negative (-1 notch) High Risk EuroChem Mineral and 5. High Risk 3. 4. Fair 4. Significant bb BB Chemical Co. OJSC Satisfactory Industries Qatar QSC 4. 2. Strong 3. 1. Minimal a- Yes AA- Moderately Satisfactory High Risk Ineos Group Holdings 4. 4. Fair 4. Fair 5. bb- Financial Policy: B+ S.A. Moderately Aggressive Negative (-1 notch) High Risk K+S Aktiengesellschaft 4. 3. 3. 3. bbb- Financial Policy: BBB Moderately Satisfactory Satisfactory Intermediate Positive (+1 notch) High Risk Kerling PLC 4. 5. Weak 5. Weak 6. Highly b- B- Moderately Leveraged High Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Nitrogenmuvek Zrt. 4. 5. Weak 5. Weak 5. b+ Liquidity: Strong (+1 BB- Moderately Aggressive notch) High Risk Nizhnekamskneftekhim 5. High Risk 4. Fair 5. Weak 3. bb Financial Policy: Yes BB- OAO Intermediate Negative (-1 notch) Novacap International 3. 5. Weak 5. Weak 6. Highly b B SAS Intermediate Leveraged Risk OCP S.A. 4. 2. Strong 3. 4. Significant bbb- Yes BBB- Moderately Satisfactory High Risk Orion Engineered 3. 4. Fair 4. Fair 6. Highly b B Carbons Bondco GmbH Intermediate Leveraged Risk PhosAgro OJSC 5. High Risk 3. 4. Fair 2. Modest bbb- BBB- Satisfactory Saudi Basic Industries 4. 1. Excellent 2. Strong 2. Modest a Yes A+ Corp. Moderately High Risk Solvay S.A. 3. 3. 3. 3. bbb Comparable Ratings BBB+ Intermediate Satisfactory Satisfactory Intermediate Analysis: Positive (+1 Risk notch) Styrolution Group 4. 5. Weak 5. Weak 4. Significant bb- Financial Policy: B+ GmbH Moderately Negative (-1 notch) High Risk Uralkali OJSC 5. High Risk 2. Strong 4. Fair 2. Modest bbb- BBB- Yara International ASA 4. 3. 3. 2. Modest bbb+ Financial Policy: BBB Moderately Satisfactory Satisfactory Negative (-1 notch) High Risk Average scores for 4.1 3.4 3.9 3.7 commodity chemicals
CONSUMER DURABLES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) AB Electrolux 3. 3. 3. 2. Modest bbb+ BBB+ Intermediate Satisfactory Satisfactory Risk Arcelik A.S. 3. 3. 3. 4. Significant bbb- Liquidity: Less than BB+ Intermediate Satisfactory Satisfactory adequate (-1 notch) Risk Britax Group Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk BSH Bosch und Siemens 3. 2. Strong 2. Strong 2. Modest a A Hausgeraete GmbH Intermediate Risk Frigoglass SAIC 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Intermediate Leveraged Analysis: Positive (+1 Risk notch)
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Breakdown Of European Corporate Rating Scores* (cont.) Lion/Gloria Holdco 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Average scores for 3.0 3.5 3.5 4.3 consumer durables
CONTAINERS & PACKAGING
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Albea Beauty Holdings 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ S.A. Intermediate Leveraged Analysis: Positive (+1 Risk notch) Ardagh Packaging 3. 3. 3. 6. Highly b+ Financial Policy: B Group Ltd. Intermediate Satisfactory Satisfactory Leveraged Negative (-1 notch) Risk Clondalkin Industries 3. 4. Fair 4. Fair 6. Highly b B B.V. Intermediate Leveraged Risk Financiere Daunou 5 3. 4. Fair 4. Fair 6. Highly b B S.a.r.l. Intermediate Leveraged Risk GCL Holdings S.C.A. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Gerresheimer AG 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Innovia Group (Holding 3. 4. Fair 4. Fair 6. Highly b B 3) Ltd. Intermediate Leveraged Risk Kleopatra Holdings 2 3. 4. Fair 4. Fair 6. Highly b B S.C.A. Intermediate Leveraged Risk Rexam Plc 3. 3. 3. 3. bbb Financial Policy: BBB- Intermediate Satisfactory Satisfactory Intermediate Negative (-1 notch) Risk Turkiye Sise ve Cam 3. 4. Fair 4. Fair 3. bb+ Liquidity: Less than Yes BB+ Fabrikalari A.S. Intermediate Intermediate adequate (-1 notch) Risk Comparable Ratings Analysis: Positive (+1 notch) Average scores for 3 3.7 3.7 5.2 containers & packaging
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Breakdown Of European Corporate Rating Scores* (cont.)
ENGINEERING & CONSTRUCTION
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Abengoa S.A. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Astaldi SpA 4. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Moderately Leveraged Analysis: Positive (+1 High Risk notch) Grupo Isolux Corsan 3. 4. Fair 4. Fair 6. Highly b B Finance B.V. Intermediate Leveraged Risk Petrofac Ltd. 4. 2. Strong 3. 2. Modest bbb+ BBB+ Moderately Satisfactory High Risk Salini S.p.A. 4. 4. Fair 4. Fair 4. Significant bb BB Moderately High Risk Strabag SE 4. 3. 3. 3. bbb- BBB- Moderately Satisfactory Satisfactory Intermediate High Risk Average score for 3.7 3.5 3.7 4.5 engineering and construction
ENVIRONMENTAL SERVICES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) ALBA Group plc & Co. 3. 5. Weak 5. Weak 5. b+ Comparable Ratings B KG Intermediate Aggressive Analysis: Negative (-1 Risk notch) Veolia Environnement 1. Very Low 3. 2. Strong 4. Significant bbb Diversification/portfolio BBB S.A. Risk Satisfactory effect: Moderate (+1 notch) Comparable Ratings Analysis: Negative (-1 notch) Average scores for 2.0 4.0 3.5 4.5 environmental services
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Breakdown Of European Corporate Rating Scores* (cont.)
FOREST & PAPER PRODUCTS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) ENCE Energia y 4. 4. Fair 4. Fair 4. Significant bb BB Celulosa S.A. Moderately High Risk Holmen AB 4. 3. 3. 3. bbb- Financial Policy: BBB Moderately Satisfactory Satisfactory Intermediate Positive (+1 notch) High Risk Lecta S.A. 4. 5. Weak 5. Weak 6. Highly b B Moderately Leveraged High Risk Metsa Board Corp. 4. 5. Weak 5. Weak 5. b+ Comparable Ratings Yes B+ Moderately Aggressive Analysis: Negative (-1 High Risk notch) Mondi Consumer 4. 3. 3. 3. bbb- Yes BBB- Packaging International Moderately Satisfactory Satisfactory Intermediate AG High Risk Mondi Group 4. 3. 3. 3. bbb- BBB- Moderately Satisfactory Satisfactory Intermediate High Risk Portucel S.A. 4. 4. Fair 4. Fair 3. bb+ Yes BB Moderately Intermediate High Risk Sappi Ltd. 4. 4. Fair 4. Fair 5. bb- BB- Moderately Aggressive High Risk Smurfit Kappa Group 4. 3. 3. 4. Significant bb+ BB+ PLC Moderately Satisfactory Satisfactory High Risk Stora Enso Oyj 4. 4. Fair 4. Fair 4. Significant bb BB Moderately High Risk UPM-Kymmene Corp. 4. 3. 3. 4. Significant bb+ Comparable Ratings BB Moderately Satisfactory Satisfactory Analysis: Negative (-1 High Risk notch) Average scores for 4.0 3.7 3.7 4.0 forest & paper products
HEALTH CARE EQUIPMENT
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Boston Luxembourg II 2. Low Risk 3. 3. 6. Highly b+ B+ S.a.r.l. Satisfactory Satisfactory Leveraged
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Breakdown Of European Corporate Rating Scores* (cont.) Average scores for 2.0 3.0 3.0 6.0 healthcare equipment
HEALTH CARE SERVICES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Care UK Health & Social 3. 5. Weak 5. Weak 6. Highly b B Care Investments Ltd. Intermediate Leveraged Risk Cerba European Lab 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ SAS Intermediate Leveraged Analysis: Positive (+1 Risk notch) Elli Investments Ltd. 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B- Intermediate Leveraged Analysis: Negative (-1 Risk notch) Fresenius Medical Care 3. 3. 3. 4. Significant bb+ Yes BB+ AG & Co. KGaA Intermediate Satisfactory Satisfactory Risk Fresenius SE & Co. 3. 2. Strong 2. Strong 4. Significant bbb Financial Policy: BB+ KGaA Intermediate Negative (-2 notches) Risk Holding 3. 4. Fair 4. Fair 6. Highly b B Medi-Partenaires SAS Intermediate Leveraged Risk Labco S.A. 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Intermediate Leveraged Analysis: Positive (+1 Risk notch) Priory Group No.3 PLC 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk Turnstone BidCo 1 Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Unilabs Holding AB 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Voyage BidCo Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Average scores for 3.0 3.7 3.7 5.6 healthcare services
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Breakdown Of European Corporate Rating Scores* (cont.)
HOMEBUILDERS & DEVELOPERS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Aldar Properties PJSC 3. 5. Weak 5. Weak 4. Significant bb- Yes BB+ Intermediate Risk Breboro Holdings Co. 5. High Risk 6. Vulnerable 6. 6. Highly b- B- Ltd. Group Vulnerable Leveraged CJSC SSMO 5. High Risk 4. Fair 5. Weak 5. b+ B+ LenSpetsSMU Aggressive Damac Real Estate 4. 5. Weak 5. Weak 3. bb BB Development Limited Moderately Intermediate High Risk Dar Al Arkan Real 4. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Estate Development Co. Moderately Aggressive Analysis: Negative (-1 High Risk notch) Emaar Properties PJSC 3. 4. Fair 4. Fair 2. Modest bbb- Yes BBB- Intermediate Risk Financiere Gaillon 8 4. 4. Fair 4. Fair 6. Highly b B Moderately Leveraged High Risk Pioneer Group CJSC 5. High Risk 6. Vulnerable 6. 6. Highly b- B- Vulnerable Leveraged RSG International Ltd. 5. High Risk 5. Weak 5. Weak 6. Highly b Capital Structure: B- Leveraged Negative (-1 notch) Taylor Wimpey PLC 4. 4. Fair 4. Fair 3. bb+ BB+ Moderately Intermediate High Risk Tourism Development 4. 6. Vulnerable 6. 6. Highly b- Yes AA and Investment Co. Moderately Vulnerable Leveraged P.J.S.C. High Risk Average scores for 4.2 4.8 4.9 4.7 homebuilders & developers
LEISURE & SPORTS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Accor S.A. 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Amadeus IT Holding 3. 3. 3. 2. Modest bbb+ Financial Policy: BBB S.A. Intermediate Satisfactory Satisfactory Negative (-1 notch) Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Carlson Wagonlit B.V. 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk Cirsa Gaming Corp. S.A. 4. 5. Weak 5. Weak 5. b+ B+ Moderately Aggressive High Risk Deutsche Raststatten 3. 2. Strong 2. Strong 6. Highly bb Financial Policy: FS-6 BB- Gruppe IV GmbH Intermediate Leveraged (minus) (-1 notch) Risk Enterprise Inns PLC 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Gala Coral Group Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Gamenet S.p.A. 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk Geo Travel Finance 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ SCA Luxembourg Intermediate Leveraged Analysis: Positive (+1 Risk notch) InterContinental Hotels 3. 2. Strong 2. Strong 3. bbb+ Financial Policy: BBB Group PLC Intermediate Intermediate Negative (-1 notch) Risk Intralot S.A. 3. 4. Fair 4. Fair 4. Significant bb Financial Policy: B+ Intermediate Negative (-1 notch) Risk Comparable Ratings Analysis: Negative (-1 notch) Ladbrokes PLC 3. 4. Fair 4. Fair 4. Significant bb BB Intermediate Risk Merlin Entertainments 3. 3. 3. 5. bb BB PLC Intermediate Satisfactory Satisfactory Aggressive Risk Moto Hospitality Ltd. 3. 4. Fair 4. Fair 6. Highly b Financial Policy: B- Intermediate Leveraged Negative (-1 notch) Risk Odeon & UCI Cinemas 3. 5. Weak 5. Weak 6. Highly b- B- Group Ltd. Intermediate Leveraged Risk PAESA Entertainment 3. 5. Weak 5. Weak 6. Highly b Financial Policy: FS-6 B- Holding S.L. Intermediate Leveraged (minus) (-1 notch) Risk Parques Reunidos 3. 5. Weak 5. Weak 6. Highly b- B- Servicios Centrales, Intermediate Leveraged S.A.U. Risk Safari Holding 3. 5. Weak 5. Weak 5. b+ Comparable Ratings B Verwaltungs GmbH Intermediate Aggressive Analysis: Negative (-1 Risk notch) Sisal Holding Istituto di 3. 4. Fair 4. Fair 6. Highly b B Pagamento S.p.a. Intermediate Leveraged Risk SNAI SpA 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Soho House Group Ltd. 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B- Intermediate Leveraged Analysis: Negative (-1 Risk notch) Stonegate Pub 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Company Ltd Intermediate Leveraged Analysis: Positive (+1 Risk notch) Thomas Cook Group 3. 5. Weak 5. Weak 6. Highly b B PLC Intermediate Leveraged Risk Travelex Holdings Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk TUI AG 3. 5. Weak 5. Weak 5. b+ Comparable Ratings B Intermediate Aggressive Analysis: Negative (-1 Risk notch) Vougeot BidCo PLC 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk William Hill PLC 3. 3. 3. 3. bbb- Financial Policy: BB+ Intermediate Satisfactory Satisfactory Intermediate Negative (-1 notch) Risk Average scores for 3.0 4.1 4.1 5.2 leisure & sports
MEDIA & ENTERTAINMENT
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) All3Media Ltd. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Alpha Topco Ltd. 3. 3. 3. 6. Highly b+ Comparable Ratings B Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Risk notch) Scout24 (Asa NewCo 3. 4. Fair 4. Fair 6. Highly b B GmbH) Intermediate Leveraged Risk Bertelsmann SE & Co. 3. 3. 3. 2. Modest bbb+ BBB+ KGaA Intermediate Satisfactory Satisfactory Risk British Sky Broadcasting 3. 3. 3. 1. Minimal a- Financial Policy: BBB+ Group PLC Intermediate Satisfactory Satisfactory Negative (-1 notch) Risk Central European Media 3. 5. Weak 5. Weak 6. Highly b- Capital Structure: B- Enterprises Ltd. Intermediate Leveraged Negative (-1 notch) Risk CTC Media Inc. 4. 5. Weak 5. Weak 2. Modest bb+ Financial Policy: BB- Moderately Negative (-1 notch) High Risk Comparable Ratings Analysis: Negative (-1 notch)
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Breakdown Of European Corporate Rating Scores* (cont.) Cyfrowy Polsat S.A. 3. 3. 3. 4. Significant bb+ Comparable Ratings BB Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Risk notch) Daily Mail & General 3. 3. 3. 3. bbb- BBB- Trust PLC Intermediate Satisfactory Satisfactory Intermediate Risk EDU UK Bondco PLC 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Gallery Media Holding 4. 5. Weak 5. Weak 6. Highly b Comparable Ratings B- Ltd. (BVI) Moderately Leveraged Analysis: Negative (-1 High Risk notch) Gruppo Editoriale 3. 5. Weak 5. Weak 4. Significant bb- BB- L'Espresso SpA Intermediate Risk ITV PLC 3. 3. 3. 2. Modest bbb+ Financial Policy: BBB- Intermediate Satisfactory Satisfactory Negative (-1 notch) Risk Comparable Ratings Analysis: Negative (-1 notch) JCDecaux S.A. 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk MergerMarket Group 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk NH Hoteles S.A. 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Pearson PLC 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk Polish Television 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings Yes B- Holding B.V. Intermediate Leveraged Analysis: Negative (-1 Risk notch) Publicis Groupe S.A. 3. 3. 3. 1. Minimal a- Financial Policy: BBB+ Intermediate Satisfactory Satisfactory Negative (-1 notch) Risk Reed Elsevier PLC 3. 2. Strong 2. Strong 3. a- Financial Policy: BBB+ Intermediate Intermediate Negative (-1 notch) Risk RTL Group S.A. 3. 3. 3. 1. Minimal a- Yes BBB+ Intermediate Satisfactory Satisfactory Risk Springer SBM One 3. 3. 3. 6. Highly b+ Comparable Ratings B GmbH Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Risk notch) Springer 3. 3. 3. 6. Highly b+ Comparable Ratings B Science+Business Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Media S.A. Risk notch) Television Francaise 1 3. 4. Fair 4. Fair 2. Modest bbb- Financial Policy: BBB+ S.A. Intermediate Positive (+1 notch) Risk Comparable Ratings Analysis: Positive (+1 notch)
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Breakdown Of European Corporate Rating Scores* (cont.) TVN S.A. 3. 4. Fair 4. Fair 5. bb- Comparable Ratings Yes B+ Intermediate Aggressive Analysis: Negative (-1 Risk notch) UBM PLC 3. 3. 3. 3. bbb Financial Policy: BBB- Intermediate Satisfactory Satisfactory Intermediate Negative (-1 notch) Risk Wolters Kluwer N.V. 3. 2. Strong 2. Strong 3. a- Financial Policy: BBB+ Intermediate Intermediate Negative (-1 notch) Risk WPP PLC 3. 2. Strong 2. Strong 3. bbb+ Financial Policy: BBB Intermediate Intermediate Negative (-1 notch) Risk Average scores for 3.1 3.5 3.5 4.0 media & entertainment
METALS & MINING DOWNSTREAM
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Anglo American PLC 4. 1. Excellent 2. Strong 4. Significant bbb BBB Moderately High Risk Aperam S.A. 4. 5. Weak 5. Weak 5. b+ B+ Moderately Aggressive High Risk ArcelorMittal 4. 3. 3. 5. bb Comparable Ratings BB+ Moderately Satisfactory Satisfactory Aggressive Analysis: Positive (+1 High Risk notch) Constellium N.V. 4. 4. Fair 4. Fair 5. bb- BB- Moderately Aggressive High Risk Eco-Bat Technologies 4. 5. Weak 5. Weak 4. Significant bb- Financial Policy: B Ltd. Moderately Negative (-2 notches) High Risk Eregli Demir ve Celik 4. 4. Fair 4. Fair 5. bb- Liquidity: Less than B+ Fabrikalari T.A.S. Moderately Aggressive adequate (-1 notch) High Risk Evraz Group S.A. 5. High Risk 3. 4. Fair 5. bb- Comparable Ratings Yes B+ Satisfactory Aggressive Analysis: Negative (-1 notch) Kloeckner & Co. S.E. 4. 5. Weak 5. Weak 5. b+ Liquidity: Strong (+1 B+ Moderately Aggressive notch) Comparable High Risk Ratings Analysis: Negative (-1 notch) NLMK OJSC 5. High Risk 2. Strong 4. Fair 3. bb+ BB+ Intermediate Norsk Hydro ASA 4. 3. 3. 3. bbb- Yes BBB Moderately Satisfactory Satisfactory Intermediate High Risk OAO Severstal 5. High Risk 2. Strong 4. Fair 3. bb+ BB+ Intermediate
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Breakdown Of European Corporate Rating Scores* (cont.) Ovako Group AB 4. 5. Weak 5. Weak 6. Highly b B Moderately Leveraged High Risk Schmolz + Bickenbach 4. 5. Weak 5. Weak 5. b+ Comparable Ratings B AG Moderately Aggressive Analysis: Negative (-1 High Risk notch) SSAB AB 4. 4. Fair 4. Fair 5. bb- BB- Moderately Aggressive High Risk ThyssenKrupp AG 4. 3. 3. 6. Highly b+ Diversification/portfolio BB Moderately Satisfactory Satisfactory Leveraged effect: Moderate (+1 High Risk notch) Comparable Ratings Analysis: Positive (+1 notch) Average scores for 4.2 3.6 4.0 4.6 metals & mining downstream
METALS & MINING UPSTREAM
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Alrosa 5. High Risk 4. Fair 5. Weak 4. Significant bb- Comparable Ratings Yes BB- Analysis: Negative (-1 notch) AngloGold Ashanti Ltd. 4. 4. Fair 4. Fair 4. Significant bb BB+ Moderately High Risk Consolidated Minerals 4. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings B+ Ltd. (Jersey) Moderately Analysis: Negative (-1 High Risk notch) Eurasian Natural 5. High Risk 3. 4. Fair 5. bb- Liquidity: Less than Yes B Resources Corporation Satisfactory Aggressive adequate (-1 notch) PLC Management & Governance: Weak (-1 notch) First Quantum Minerals 4. 4. Fair 4. Fair 5. bb- Financial Policy: B+ Ltd Moderately Aggressive Negative (-1 notch) High Risk Gold Fields Ltd. 4. 4. Fair 4. Fair 4. Significant bb Comparable Ratings BB+ Moderately Analysis: Positive (+1 High Risk notch) JSC Holding Company 5. High Risk 3. 4. Fair 4. Significant bb Capital Structure: BB Metalloinvest Satisfactory Positive (+1 notch) Financial Policy: Negative (-1 notch) MMC Norilsk Nickel 5. High Risk 2. Strong 4. Fair 3. bb+ Comparable Ratings BBB- OJSC Intermediate Analysis: Positive (+1 notch) OAO Koks 5. High Risk 5. Weak 5. Weak 6. Highly b- B- Leveraged Polyus Gold 5. High Risk 3. 4. Fair 3. bb+ BB+ International Ltd. Satisfactory Intermediate
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Breakdown Of European Corporate Rating Scores* (cont.) Rio Tinto Plc 4. 1. Excellent 2. Strong 3. a- A- Moderately Intermediate High Risk S&B Minerals Finance 4. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ S.C.A. Moderately Aggressive Analysis: Negative (-1 High Risk notch) Average scores for 4.5 3.5 4.1 4.2 metals & mining upstream MIDSTREAM ENERGY
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) GasTerra B.V. 2. Low Risk 2. Strong 2. Strong 1. Minimal aa Yes AA KazTransGas 4. 4. Fair 4. Fair 3. bb+ Financial Policy: Yes BB+ Moderately Intermediate Negative (-1 notch) High Risk Average scores for 3.0 3.0 3.0 2.0 midstream energy
NUCLEAR
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) AREVA 3. 3. 3. 6. Highly b+ Liquidity: Strong (+1 Yes BBB- Intermediate Satisfactory Satisfactory Leveraged notch) Risk Urenco Ltd. 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB+ Intermediate Analysis: Positive (+1 Risk notch) Average scores for 3.0 2.5 2.5 5.0 nuclear
OIL & GAS DRILLING, EQUIPMENT & SERVICES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) C.A.T. oil AG 4. 5. Weak 5. Weak 2. Modest bb+ Comparable Ratings BB Moderately Analysis: Negative (-1 High Risk notch) CGG 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Eurasia Drilling Co. 4. 4. Fair 4. Fair 2. Modest bbb- Comparable Ratings BB+ Moderately Analysis: Negative (-1 High Risk notch) Expro Holdings U.K. 3 3. 5. Weak 5. Weak 6. Highly b- B- Ltd. Intermediate Leveraged Risk IG Seismic Services PLC 4. 5. Weak 5. Weak 6. Highly b Yes B Moderately Leveraged High Risk KCA DEUTAG Alpha 3. 5. Weak 5. Weak 6. Highly b B Ltd. Intermediate Leveraged Risk MB Petroleum Service 3. 5. Weak 5. Weak 6. Highly b- Yes B LLC Intermediate Leveraged Risk Millennium Offshore 3. 5. Weak 5. Weak 5. b+ Comparable Ratings B Services Superholdings Intermediate Aggressive Analysis: Negative (-1 LLC Risk notch) Nico Middle East Ltd. 3. 4. Fair 4. Fair 6. Highly b Yes B Intermediate Leveraged Risk Ocean Rig UDW Inc. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Petroleum Geo-Services 3. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings BB ASA Intermediate Analysis: Positive (+1 Risk notch) Seadrill Partners LLC 3. 4. Fair 4. Fair 4. Significant bb Financial Policy: BB- Intermediate Negative (-1 notch) Risk Shelf Drilling Holdings 3. 5. Weak 5. Weak 5. b+ B+ Ltd. Intermediate Aggressive Risk Songa Offshore SE 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Stena AB 3. 4. Fair 4. Fair 6. Highly b Diversification/portfolio BB Intermediate Leveraged effect: Moderate (+1 Risk notch) Management & Governance: Strong (+1 notch) Comparable Ratings Analysis: Positive (+1 notch) Vallourec 3. 3. 3. 3. bbb Comparable Ratings BBB+ Intermediate Satisfactory Satisfactory Intermediate Analysis: Positive (+1 Risk notch) Welltec A/S 3. 4. Fair 4. Fair 5. bb- BB- Intermediate Aggressive Risk Average scores for oil 3.2 4.5 4.5 4.9 & gas drilling, equipment & services
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.)
OIL & GAS INTEGRATED, EXPLORATION & PRODUCTION
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) A.P.Moller - Maersk 4. 2. Strong 3. 3. bbb Diversification/portfolio BBB+ A/S Moderately Satisfactory Intermediate effect: Moderate (+1 High Risk notch) Afren PLC 4. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings B+ Moderately Analysis: Negative (-1 High Risk notch) BG Energy Holdings 3. 2. Strong 2. Strong 3. a- Yes A- Ltd. Intermediate Intermediate Risk BP PLC 3. 1. Excellent 1. Excellent 3. a+ Management & Yes A Intermediate Intermediate Governance: Fair (-1 Risk notch) EBN B.V. 3. 1. Excellent 1. Excellent 1. Minimal aa+ Yes AA+ Intermediate Risk Eni SpA 3. 2. Strong 2. Strong 2. Modest a Yes A Intermediate Risk EnQuest PLC 3. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings B+ Intermediate Analysis: Negative (-1 Risk notch) Gazprom Neft JSC 4. 2. Strong 3. 3. bbb Financial Policy: Yes BBB- Moderately Satisfactory Intermediate Negative (-1 notch) High Risk Gazprom OAO 4. 2. Strong 3. 3. bbb Financial Policy: Yes BBB- Moderately Satisfactory Intermediate Negative (-1 notch) High Risk International Petroleum 3. 3. 3. 6. Highly b+ Comparable Ratings Yes AA Investment Company Intermediate Satisfactory Satisfactory Leveraged Analysis: Positive (+1 (IPIC) Risk notch) KazMunaiGas 4. 5. Weak 5. Weak 2. Modest bb+ Yes BBB- Exploration Production Moderately JSC High Risk KazMunayGas NC JSC 4. 4. Fair 4. Fair 5. bb- Financial Policy: Yes BBB- Moderately Aggressive Negative (-1 notch) High Risk Lukoil OAO 4. 2. Strong 3. 2. Modest bbb+ Financial Policy: BBB- Moderately Satisfactory Negative (-1 notch) High Risk MB Holding Company 3. 5. Weak 5. Weak 6. Highly b B LLC. Intermediate Leveraged Risk MOL Hungarian Oil and 3. 4. Fair 4. Fair 4. Significant bb Yes BB Gas PLC Intermediate Risk Nostrum Oil & Gas 4. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings B+ Moderately Analysis: Negative (-1 High Risk notch)
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) OAO NOVATEK 4. 3. 3. 3. bbb- BBB- Moderately Satisfactory Satisfactory Intermediate High Risk Oil and Gas Company 4. 5. Weak 5. Weak 5. b+ Financial Policy: B Russneft OJSC Moderately Aggressive Negative (-1 notch) High Risk Oil Company Rosneft 4. 2. Strong 3. 5. bb Financial Policy: Yes BBB- OJSC Moderately Satisfactory Aggressive Negative (-1 notch) High Risk Comparable Ratings Analysis: Positive (+1 notch) Polish Oil & Gas 3. 4. Fair 4. Fair 3. bb+ Yes BBB- Company SA (PGNiG) Intermediate Intermediate Risk Repsol S.A. 3. 3. 3. 3. bbb- BBB- Intermediate Satisfactory Satisfactory Intermediate Risk Royal Dutch Shell plc 3. 1. Excellent 1. Excellent 2. Modest aa Yes AA Intermediate Risk Samruk-Kazyna 4. 4. Fair 4. Fair 6. Highly b Diversification/portfolio Yes BBB+ Moderately Leveraged effect: Moderate (+1 High Risk notch) Sasol Ltd. 3. 3. 3. 3. bbb Yes BBB Intermediate Satisfactory Satisfactory Intermediate Risk State Oil Company of 4. 4. Fair 4. Fair 4. Significant bb Financial Policy: Yes BB+ Azerbaijan Republic Moderately Negative (-1 notch) High Risk Comparable Ratings Analysis: Positive (+1 notch) Statoil ASA 3. 2. Strong 2. Strong 2. Modest a Comparable Ratings Yes AA- Intermediate Analysis: Positive (+1 Risk notch) Total S.A. 3. 1. Excellent 1. Excellent 2. Modest aa Comparable Ratings AA- Intermediate Analysis: Negative (-1 Risk notch) Tullow Oil PLC 3. 4. Fair 4. Fair 5. bb- Financial Policy: BB Intermediate Aggressive Positive (+1 notch) Risk Average scores for oil 3.5 3.1 3.3 3.5 & gas integrated, exploration & production
PHARMACEUTICALS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Almirall, SA 2. Low Risk 4. Fair 4. Fair 3. bb+ Financial Policy: BB Intermediate Negative (-1 notch) AstraZeneca PLC 2. Low Risk 2. Strong 2. Strong 1. Minimal aa Financial Policy: AA- Negative (-1 notch)
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Bayer AG 2. Low Risk 2. Strong 2. Strong 3. a- Diversification/portfolio A- Intermediate effect: Moderate (+1 notch) Financial Policy: Negative (-1 notch) Chimpharm JSC 4. 6. Vulnerable 6. 6. Highly b- Financial Policy: B- Moderately Vulnerable Leveraged Negative (-1 notch) High Risk GlaxoSmithKline PLC 2. Low Risk 1. Excellent 1. Excellent 3. a+ A+ Intermediate Grifols S.A. 2. Low Risk 3. 3. 4. Significant bb+ Financial Policy: BB Satisfactory Satisfactory Negative (-1 notch) Merck KGaA 2. Low Risk 2. Strong 2. Strong 2. Modest a Diversification/portfolio A effect: Moderate (+1 notch) Financial Policy: Negative (-1 notch) Novartis AG 2. Low Risk 1. Excellent 1. Excellent 1. Minimal aa+ Financial Policy: AA- Negative (-2 notches) Novasep Holding S.A.S. 2. Low Risk 5. Weak 5. Weak 6. Highly b Financial Policy: B- Leveraged Negative (-1 notch) Novo Nordisk A/S 2. Low Risk 2. Strong 2. Strong 1. Minimal aa- AA- Roche Holding AG 2. Low Risk 1. Excellent 1. Excellent 1. Minimal aa+ Financial Policy: AA Negative (-1 notch) Rottapharm SpA 2. Low Risk 4. Fair 4. Fair 4. Significant bb Comparable Ratings BB- Analysis: Negative (-1 notch) Sanofi 2. Low Risk 1. Excellent 1. Excellent 1. Minimal aa+ Financial Policy: AA Negative (-1 notch) Average scores for 2.2 2.6 2.6 2.8 pharmaceuticals
RAILROAD & PACKAGE EXPRESS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) CEVA Holding LLC 2. Low Risk 5. Weak 5. Weak 6. Highly b Management & Yes B- Leveraged Governance: Weak (-1 notch) Far-Eastern Shipping 4. 4. Fair 4. Fair 6. Highly b Comparable Ratings Yes B+ Co. PLC Moderately Leveraged Analysis: Positive (+1 High Risk notch) Logwin AG 2. Low Risk 6. Vulnerable 6. 3. bb- Comparable Ratings B+ Vulnerable Intermediate Analysis: Negative (-1 notch) PostNL N.V. 2. Low Risk 3. 3. 4. Significant bb+ Capital Structure: BBB- Satisfactory Satisfactory Positive (+1 notch) TNT Express N.V. 2. Low Risk 3. 3. 2. Modest bbb+ Yes BBB+ Satisfactory Satisfactory UCL Rail B.V. 4. 4. Fair 4. Fair 3. bb+ Yes BB+ Moderately Intermediate High Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Average scores for 2.7 4.2 4.2 4.0 railroad & package express
REAL ESTATE INVESTMENT TRUSTS (REITs)
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Atrium European Real 3. 3. 3. 3. bbb- BBB- Estate Ltd. Intermediate Satisfactory Satisfactory Intermediate Risk Befimmo S.A. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb BBB Citycon Oyj 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Analysis: Negative (-1 notch) Cofinimmo S.A./N.V. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Analysis: Negative (-1 notch) Corio N.V. 2. Low Risk 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Derwent London PLC 2. Low Risk 2. Strong 2. Strong 4. Significant bbb BBB Deutsche Annington 2. Low Risk 2. Strong 2. Strong 4. Significant bbb BBB Immobilien SE Dubai Investments Park 3. 4. Fair 4. Fair 1. Minimal bbb- Yes BB+ Development Company Intermediate LLC Risk Emaar Malls Group LLC 3. 4. Fair 4. Fair 2. Modest bbb- Yes BBB- Intermediate Risk Fonciere des Regions 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Analysis: Negative (-1 notch) Gecina 2. Low Risk 2. Strong 2. Strong 3. bbb+ Comparable Ratings BBB Intermediate Analysis: Negative (-1 notch) Global Switch Holdings 2. Low Risk 3. 3. 2. Modest bbb+ Comparable Ratings BBB Ltd. Satisfactory Satisfactory Analysis: Negative (-1 notch) Goodman European 2. Low Risk 3. 3. 3. bbb BBB Logistics Fund, FCP-FIS Satisfactory Satisfactory Intermediate Grainger PLC 3. 3. 3. 5. bb BB Intermediate Satisfactory Satisfactory Aggressive Risk Grand City Properties 2. Low Risk 4. Fair 4. Fair 3. bb+ BB+ S.A. Intermediate Icade S.A. 2. Low Risk 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Klepierre S.A. 2. Low Risk 2. Strong 2. Strong 3. a- A- Intermediate
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Majid Al Futtaim 3. 3. 3. 3. bbb BBB Holding LLC Intermediate Satisfactory Satisfactory Intermediate Risk Mercialys 2. Low Risk 3. 3. 3. bbb BBB Satisfactory Satisfactory Intermediate O1 Properties Ltd. 4. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Moderately Aggressive Analysis: Negative (-1 High Risk notch) Prologis European 2. Low Risk 3. 3. 3. bbb BBB Properties Fund II, FCP Satisfactory Satisfactory Intermediate Societe Fonciere 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Lyonnaise S.A. Analysis: Negative (-1 notch) Unibail-Rodamco 2. Low Risk 1. Excellent 1. Excellent 3. a A Intermediate Average scores for 2.3 2.6 2.6 3.3 real estate investment trusts
REGULATED UTILITIES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) A2A SpA 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Intermediate Risk Acea SpA 3. 3. 3. 4. Significant bbb- Yes BBB- Intermediate Satisfactory Satisfactory Risk Alliander N.V. 1. Very Low 1. Excellent 1. Excellent 2. Modest aa Comparable Ratings Yes AA- Risk Analysis: Negative (-1 notch) Azerenerji JSC 4. 5. Weak 5. Weak 6. Highly b Capital Structure: Yes BBB- Moderately Leveraged Negative (-1 notch) High Risk Comparable Ratings Analysis: Positive (+1 notch) Bord Gais Eireann 1. Very Low 3. 2. Strong 4. Significant bbb Comparable Ratings Yes BBB+ Risk Satisfactory Analysis: Positive (+1 notch) Delta N.V. 2. Low Risk 3. 3. 3. bbb Comparable Ratings Yes BBB+ Satisfactory Satisfactory Intermediate Analysis: Positive (+1 notch) Dubai Electricity and 2. Low Risk 3. 3. 3. bbb- Yes BBB Water Authority Satisfactory Satisfactory Intermediate E.ON SE 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk EDP - Energias de 3. 2. Strong 2. Strong 5. bb+ BB+ Portugal, S.A. Intermediate Aggressive Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Electricite de France 2. Low Risk 1. Excellent 1. Excellent 3. a Yes A+ S.A. Intermediate Electricity North West 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Financial Policy: BBB+ Ltd. Risk Negative (-1 notch) Electricity Supply Board 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB+ Analysis: Positive (+1 notch) Elia System Operator 1. Very Low 2. Strong 1. Excellent 4. Significant a- A- S.A./N.V. Risk Enagas S.A. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Yes BBB EnBW Energie 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes A- Baden-Wuerttemberg Intermediate Analysis: Positive (+1 AG Risk notch) Eneco Holding N.V. 2. Low Risk 2. Strong 2. Strong 3. a- Yes A- Intermediate Enel SpA 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Intermediate Risk Energie AG 3. 2. Strong 2. Strong 3. bbb+ Yes A- Oberoesterreich Intermediate Intermediate Risk Energie Steiermark AG 3. 2. Strong 2. Strong 3. a- Yes A Intermediate Intermediate Risk Energinet.dk SOV 1. Very Low 2. Strong 1. Excellent 4. Significant a- Comparable Ratings Yes AA Risk Analysis: Positive (+1 notch) Enexis Holding N.V. 1. Very Low 1. Excellent 1. Excellent 2. Modest aa Comparable Ratings Yes AA- Risk Analysis: Negative (-1 notch) ESKOM Holdings SOC 2. Low Risk 5. Weak 5. Weak 6. Highly b- Yes BBB- Ltd. Leveraged EVN AG 2. Low Risk 3. 3. 3. bbb Yes BBB+ Satisfactory Satisfactory Intermediate Federal Grid Co. Of the 4. 3. 3. 4. Significant bb+ Yes BBB- Unified Energy System Moderately Satisfactory Satisfactory High Risk Fingrid Oyj 1. Very Low 2. Strong 1. Excellent 3. a Yes AA- Risk Intermediate Fortum Varme Holding 1. Very Low 3. 2. Strong 4. Significant bbb Yes BBB+ samagt med Stockholms Risk Satisfactory stad, AB Gas Natural SDG, S.A. 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Intermediate Risk Gelsenwasser AG 2. Low Risk 2. Strong 2. Strong 3. a- A- Intermediate Hera SpA 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Intermediate Risk Hrvatska 2. Low Risk 4. Fair 4. Fair 5. bb- Liquidity: Less than Yes BB- Elektroprivreda d.d. Aggressive adequate (-1 notch) Iberdrola S.A. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Yes BBB
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Interregional 4. 4. Fair 4. Fair 5. bb- Yes BB Distributive Grid Co. of Moderately Aggressive Center, JSC High Risk Israel Electric Corp. Ltd. 1. Very Low 5. Weak 4. Fair 6. Highly b Yes BB+ Risk Leveraged Kazakhstan Electricity 4. 5. Weak 5. Weak 5. b+ Capital Structure: Yes BB+ Grid Operating Co. Moderately Aggressive Negative (-1 notch) (JSC) High Risk KazTransOil 4. 4. Fair 4. Fair 2. Modest bbb- Financial Policy: Yes BBB- Moderately Negative (-1 notch) High Risk KELAG 3. 2. Strong 2. Strong 2. Modest a Yes A Intermediate Risk Kraftringen Energi AB 2. Low Risk 3. 3. 4. Significant bbb- Yes BBB+ (publ) Satisfactory Satisfactory London Power 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Financial Policy: bbb+ Networks PLC Risk Negative (-1 notch) Madrilena Red de Gas, 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB- S.A.U. Analysis: Negative (-1 notch) Moscow Integrated 4. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings Yes BB- Power Co. JSC Moderately Analysis: Negative (-1 High Risk notch) Moscow United Electric 4. 4. Fair 4. Fair 5. bb- Yes BB Grid Co. JSC Moderately Aggressive High Risk Mosvodokanal JSC 4. 4. Fair 4. Fair 2. Modest bbb- Financial Policy: Yes BBB- Moderately Negative (-1 notch) High Risk N.V. Nederlandse 1. Very Low 1. Excellent 1. Excellent 3. a Comparable Ratings Yes A+ Gasunie Risk Intermediate Analysis: Negative (-1 notch) National Grid Plc 1. Very Low 1. Excellent 1. Excellent 4. Significant a- A- Risk Natsionalna 2. Low Risk 5. Weak 5. Weak 6. Highly b- Yes B+ Elektricheska Kompania Leveraged EAD Northern Gas Networks 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Comparable Ratings BBB+ Holdings Ltd. Risk Analysis: Negative (-1 notch) Northern Gas Networks 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Comparable Ratings Yes BBB+ Ltd. Risk Analysis: Negative (-1 notch) Northern Ireland 1. Very Low 2. Strong 1. Excellent 4. Significant a- Yes BBB+ Electricity Ltd. Risk Northern Powergrid 1. Very Low 2. Strong 1. Excellent 3. a Financial Policy: Yes BBB+ Holdings Co. Risk Intermediate Negative (-1 notch) Northumbrian Water 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Comparable Ratings Yes bbb+ Ltd. Risk Analysis: Negative (-1 notch) OAO AK Transneft 4. 3. 3. 3. bbb Yes BBB- Moderately Satisfactory Satisfactory Intermediate High Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Oman Power and Water 2. Low Risk 3. 3. 2. Modest bbb+ Comparable Ratings Yes A Procurement Co. SAOC Satisfactory Satisfactory Analysis: Positive (+1 notch) PPL WEM Holdings Ltd 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Comparable Ratings Yes BBB Risk Analysis: Negative (-1 notch) PPL WW Holdings Ltd. 1. Very Low 1. Excellent 1. Excellent 3. a Comparable Ratings Yes BBB Risk Intermediate Analysis: Negative (-1 notch) Rand Water 2. Low Risk 3. 3. 3. bbb Yes BBB- Satisfactory Satisfactory Intermediate Red Electrica 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Yes BBB Corporacion S.A. REN-Redes Energeticas 2. Low Risk 2. Strong 2. Strong 5. bb+ Yes BB+ Nacionais, SGPS, S.A. Aggressive RTE Reseau de 1. Very Low 2. Strong 1. Excellent 3. a Yes A+ Transport d Electricite Risk Intermediate Russian Grids JSC 4. 4. Fair 4. Fair 4. Significant bb Comparable Ratings Yes BBB- Moderately Analysis: Negative (-1 High Risk notch) RWE AG 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB+ Intermediate Analysis: Positive (+1 Risk notch) S.N.T.G.N. Transgaz 2. Low Risk 5. Weak 5. Weak 3. bb Yes BB S.A. Medias Intermediate Saudi Electric Co. 2. Low Risk 4. Fair 4. Fair 4. Significant bb Comparable Ratings Yes AA- Analysis: Positive (+1 notch) Scotland Gas Networks 1. Very Low 1. Excellent 1. Excellent 5. bbb BBB PLC Risk Aggressive Scottish Power Ltd. 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB Analysis: Positive (+1 notch) Severn Trent Water Ltd. 1. Very Low 2. Strong 1. Excellent 4. Significant a- Comparable Ratings Yes BBB+ Risk Analysis: Negative (-1 notch) SNAM SpA 2. Low Risk 1. Excellent 1. Excellent 4. Significant a- Yes BBB+ South Staffordshire 1. Very Low 2. Strong 1. Excellent 5. bbb Comparable Ratings BBB+ Water PLC Risk Aggressive Analysis: Positive (+1 notch) Southern Gas Networks 1. Very Low 1. Excellent 1. Excellent 5. bbb BBB PLC Risk Aggressive SSE PLC 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk Statnett SF 1. Very Low 2. Strong 1. Excellent 5. bbb Yes A+ Risk Aggressive Sutton and East Surrey 1. Very Low 2. Strong 1. Excellent 4. Significant a- Management & BBB Water PLC Risk Governance: Fair (-1 notch) Comparable Ratings Analysis: Negative (-1 notch) Tekniska Verken i 2. Low Risk 3. 3. 2. Modest bbb+ Yes A Linkoping AB Satisfactory Satisfactory
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) TenneT Holding B.V. 1. Very Low 2. Strong 1. Excellent 5. bbb Yes A- Risk Aggressive Terna SpA 2. Low Risk 1. Excellent 1. Excellent 4. Significant a- Yes BBB+ Thyssengas Beteiligungs 1. Very Low 1. Excellent 1. Excellent 4. Significant a- A- GmbH Risk United Utilities Water 1. Very Low 2. Strong 1. Excellent 4. Significant a- Comparable Ratings BBB+ PLC Risk Analysis: Negative (-1 notch) Vier Gas Transport 1. Very Low 2. Strong 1. Excellent 4. Significant a- A- GmbH Risk Vodokanal St. 4. 5. Weak 5. Weak 3. bb Financial Policy: Yes BB+ Petersburg Moderately Intermediate Negative (-1 notch) High Risk Wessex Water Services 1. Very Low 1. Excellent 1. Excellent 4. Significant a- Comparable Ratings Yes BBB+ Ltd. Risk Analysis: Negative (-1 notch) Zapadoslovenska 1. Very Low 3. 2. Strong 4. Significant bbb Comparable Ratings BBB+ energetika a.s. Risk Satisfactory Analysis: Positive (+1 notch) Average scores for 2.0 2.4 2.2 3.8 regulated utilities
RETAIL & RESTAURANTS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Apoteket AB 3. 3. 3. 1. Minimal a- Yes A+ Intermediate Satisfactory Satisfactory Risk BrightHouse Group Ltd. 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk BUT S.A.S 3. 5. Weak 5. Weak 6. Highly b Comparable Ratings B- Intermediate Leveraged Analysis: Negative (-1 Risk notch) Carrefour S.A. 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk Casino Guichard - 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB- Perrachon & Cie S.A. Intermediate Analysis: Negative (-1 Risk notch) Co-operative Group Ltd. 3. 3. 3. 5. bb Financial Policy: B+ Intermediate Satisfactory Satisfactory Aggressive Negative (-1 notch) Risk Management & Governance: Weak (-1 notch) Darty plc 3. 5. Weak 5. Weak 3. bb Comparable Ratings BB- Intermediate Intermediate Analysis: Negative (-1 Risk notch) Debenhams PLC 3. 3. 3. 5. bb Comparable Ratings BB- Intermediate Satisfactory Satisfactory Aggressive Analysis: Negative (-1 Risk notch)
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Delhaize Group S.A. 3. 3. 3. 3. bbb- BBB- Intermediate Satisfactory Satisfactory Intermediate Risk DFS Furniture Holdings 3. 4. Fair 4. Fair 6. Highly b Financial Policy: FS-6 B PLC Intermediate Leveraged (minus) (-1 notch) Risk Comparable Ratings Analysis: Positive (+1 notch) Distribuidora 3. 3. 3. 3. bbb- BBB- Internacional de Intermediate Satisfactory Satisfactory Intermediate Alimentación S.A. Risk Douglas Holding AG 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Dufry AG 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Edcon Holdings Ltd. 3. 4. Fair 4. Fair 6. Highly b Capital Structure: B- Intermediate Leveraged Negative (-1 notch) Risk Financiere Quick S.A.S. 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk Global Blue Acquisition 3. 3. 3. 6. Highly b+ B+ B.V. Intermediate Satisfactory Satisfactory Leveraged Risk Groupe Auchan S.A. 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk Highland Group 3. 4. Fair 4. Fair 6. Highly b B Holdings Ltd. Intermediate Leveraged Risk Hornbach Holding AG 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Hornbach-Baumarkt-AG 3. 3. 3. 4. Significant bb+ bb+ Intermediate Satisfactory Satisfactory Risk Iceland Acquico Ltd. 3. 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Intermediate Leveraged Analysis: Positive (+1 Risk notch) Kingfisher PLC 3. 3. 3. 3. bbb- BBB- Intermediate Satisfactory Satisfactory Intermediate Risk KKR Retail Partners 3. 4. Fair 4. Fair 6. Highly b B Midco S.a.r.l. (Groupe Intermediate Leveraged SMCP) Risk Koninklijke Ahold N.V. 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Lenta Ltd. 4. 5. Weak 5. Weak 5. b+ B+ Moderately Aggressive High Risk Magnolia (BC) S.A. 3. 4. Fair 4. Fair 6. Highly b B (Maisons du Monde) Intermediate Leveraged Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Marks & Spencer PLC 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Metro AG 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Missouri TopCo Ltd. 3. 5. Weak 5. Weak 6. Highly b- B- Intermediate Leveraged Risk New Look Retail Group 3. 4. Fair 4. Fair 6. Highly b B Ltd. Intermediate Leveraged Risk Next PLC 3. 3. 3. 2. Modest bbb+ Financial Policy: BBB Intermediate Satisfactory Satisfactory Negative (-1 notch) Risk OJSC Magnit 4. 4. Fair 4. Fair 3. bb+ Comparable Ratings BB Moderately Intermediate Analysis: Negative (-1 High Risk notch) Pendragon PLC 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk Phones4u Finance PLC 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk Picard Groupe S.A.S. 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk REWE Group 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Takko Fashion S.a.r.l. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Tesco PLC 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings BBB+ Intermediate Analysis: Positive (+1 Risk notch) The Nuance Group AG 3. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Intermediate Aggressive Analysis: Negative (-1 Risk notch) X5 Retail Group N.V. 4. 4. Fair 4. Fair 5. bb- Financial Policy: B+ Moderately Aggressive Negative (-1 notch) High Risk Average scores for 3.1 3.6 3.6 4.6 retail & restaurants
SPECIALTY CHEMICALS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Akzo Nobel N.V. 2. Low Risk 2. Strong 2. Strong 3. a- Comparable Ratings BBB+ Intermediate Analysis: Negative (-1 notch)
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Breakdown Of European Corporate Rating Scores* (cont.) Allnex (Luxembourg) & 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Cy SCA Leveraged Analysis: Positive (+1 notch) Arkema S.A. 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk BASF SE 3. 2. Strong 2. Strong 2. Modest a+ A+ Intermediate Risk Clariant AG 2. Low Risk 3. 3. 4. Significant bbb- BBB- Satisfactory Satisfactory Evonik Industries AG 3. 2. Strong 2. Strong 3. bbb+ BBB+ Intermediate Intermediate Risk Flint Group GmbH 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings B+ Leveraged Analysis: Positive (+1 notch) Koninklijke DSM N.V. 3. 2. Strong 2. Strong 2. Modest a A Intermediate Risk L'Air Liquide S.A. 2. Low Risk 1. Excellent 1. Excellent 3. a+ A+ Intermediate LANXESS AG 3. 3. 3. 4. Significant bbb- BBB- Intermediate Satisfactory Satisfactory Risk Linde AG 2. Low Risk 1. Excellent 1. Excellent 3. a+ A+ Intermediate Monitchem Holdco 2 2. Low Risk 4. Fair 4. Fair 6. Highly b B S.A. Leveraged OXEA S.a.r.l., 3. 4. Fair 4. Fair 5. bb- Comparable Ratings Yes BB- Luxembourg Intermediate Aggressive Analysis: Negative (-1 Risk notch) Sika AG 2. Low Risk 2. Strong 2. Strong 2. Modest a Comparable Ratings A- Analysis: Negative (-1 notch) SPCM S.A. 2. Low Risk 3. 3. 4. Significant bb+ BB+ Satisfactory Satisfactory Syngenta AG 2. Low Risk 2. Strong 2. Strong 1. Minimal aa- Comparable Ratings A+ Analysis: Negative (-1 notch) Average scores for 2.4 2.6 2.6 3.6 specialty chemicals
TECHNOLOGY - HARDWARE & SEMICONDUCTORS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Alcatel-Lucent 4. 5. Weak 5. Weak 6. Highly b- B- Moderately Leveraged High Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) ASM International N.V. 4. 5. Weak 5. Weak 2. Modest bb+ BB+ Moderately High Risk Ericsson 4. 3. 3. 1. Minimal a- Comparable Ratings BBB+ (Telefonaktiebolaget Moderately Satisfactory Satisfactory Analysis: Negative (-1 L.M.) High Risk notch) Mubadala Development 3. 4. Fair 4. Fair 4. Significant bb Yes AA Co. PJSC Intermediate Risk Nokia Corp. 4. 5. Weak 5. Weak 3. bb BB Moderately Intermediate High Risk Nokia Solutions and 4. 5. Weak 5. Weak 5. b+ B+ Networks B.V. Moderately Aggressive High Risk NXP B.V. 4. 4. Fair 4. Fair 4. Significant bb BB Moderately High Risk Oberthur Technologies 4. 4. Fair 4. Fair 6. Highly b Comparable Ratings B- Holding SAS Moderately Leveraged Analysis: Negative (-1 High Risk notch) STMicroelectronics N.V. 4. 3. 3. 2. Modest bbb+ Comparable Ratings BBB Moderately Satisfactory Satisfactory Analysis: Negative (-1 High Risk notch) Technicolor S.A. 4. 5. Weak 5. Weak 4. Significant bb- Comparable Ratings B+ Moderately Analysis: Negative (-1 High Risk notch) Vestel Elektronik Sanayi 4. 5. Weak 5. Weak 6. Highly b- B- Ve Ticaret A.S. Moderately Leveraged High Risk Average scores for 3.9 4.4 4.4 3.9 technology - hardware & semiconductors
TECHNOLOGY - SOFTWARE & SERVICES
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) AI Avocado B.V. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk AVG Technologies N.V. 3. 5. Weak 5. Weak 1. Minimal bb+ Financial Policy: BB Intermediate Negative (-1 notch) Risk Cap Gemini S.A. 3. 3. 3. 2. Modest bbb+ Comparable Ratings BBB Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Risk notch) ION Trading 3. 4. Fair 4. Fair 6. Highly b B Technologies Ltd. Intermediate Leveraged Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Misys Newco 2 S.a.r.l 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Nassa Midco AS 3. 3. 3. 6. Highly b+ Comparable Ratings B Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Risk notch) Shield HoldCo Ltd. 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk Ship Luxco 3 S.A.R.L. 3. 4. Fair 4. Fair 6. Highly b B Intermediate Leveraged Risk Sybil Investments B.V. 3. 5. Weak 5. Weak 5. b+ B+ Intermediate Aggressive Risk TigerLuxOne 3. 5. Weak 5. Weak 6. Highly b B Intermediate Leveraged Risk Average scores for 3.0 4.2 4.2 5 technology - software & services
TELECOM & CABLE
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Adria Bidco B.V. 4. 4. Fair 4. Fair 6. Highly b B Moderately Leveraged High Risk Altice International 3. 4. Fair 4. Fair 5. bb- Yes B+ S.a.r.l. Intermediate Aggressive Risk Altice S.A. 3. 3. 3. 6. Highly b+ Yes B+ Intermediate Satisfactory Satisfactory Leveraged Risk Avanti Communications 3. 5. Weak 5. Weak 6. Highly b- B- Group PLC Intermediate Leveraged Risk Bahrain 4. 4. Fair 4. Fair 3. bb+ Yes BB+ Telecommunications Moderately Intermediate Co. High Risk Belgacom S.A. 3. 2. Strong 2. Strong 2. Modest a Yes A Intermediate Risk Bouygues S.A. 4. 3. 3. 3. bbb- Diversification/portfolio Yes BBB Moderately Satisfactory Satisfactory Intermediate effect: Moderate (+1 High Risk notch) Capital Structure: Positive (+1 notch) Comparable Ratings Analysis: Negative (-1 notch) BT Group PLC 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Bulgarian 3. 4. Fair 4. Fair 5. bb- BB- Telecommunications Intermediate Aggressive Co. EAD Risk Cable & Wireless 3. 4. Fair 4. Fair 4. Significant bb BB Communications PLC Intermediate Risk Cableuropa S.A.U. 3. 3. 3. 6. Highly b+ B+ Intermediate Satisfactory Satisfactory Leveraged Risk Cell C (Pty) Ltd. 3. 5. Weak 5. Weak 6. Highly b- Capital Structure: B- Intermediate Leveraged Negative (-1 notch) Risk Colt Group S.A. 3. 5. Weak 5. Weak 3. bb BB Intermediate Intermediate Risk Deutsche Telekom AG 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB+ Intermediate Analysis: Positive (+1 Risk notch) EE Ltd. 3. 3. 3. 3. bbb Yes bbb Intermediate Satisfactory Satisfactory Intermediate Risk eircom Holdings 3. 4. Fair 4. Fair 6. Highly b B (Ireland) Ltd. Intermediate Leveraged Risk Elisa Corp. 3. 3. 3. 2. Modest bbb+ Comparable Ratings BBB Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Risk notch) Emirates 3. 2. Strong 2. Strong 1. Minimal aa- Yes AA- Telecommunications Intermediate Corp. (Etisalat) Risk Eutelsat 3. 2. Strong 2. Strong 4. Significant bbb BBB Communications S.A. Intermediate Risk Helios Towers Nigeria 4. 4. Fair 4. Fair 6. Highly b B Ltd Moderately Leveraged High Risk Hellenic 4. 4. Fair 4. Fair 3. bb+ Comparable Ratings Yes BB- Telecommunications Moderately Intermediate Analysis: Negative (-1 Organization S.A. High Risk notch) Inmarsat PLC 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Interxion Holding N.V. 3. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Intermediate Aggressive Analysis: Negative (-1 Risk notch) Kazakhtelecom JSC 4. 4. Fair 4. Fair 3. bb+ Financial Policy: Yes BB Moderately Intermediate Negative (-1 notch) High Risk Management & Governance: Weak (-1 notch) Koninklijke KPN N.V. 3. 3. 3. 4. Significant bbb- Yes BBB- Intermediate Satisfactory Satisfactory Risk Liberty Global plc 3. 2. Strong 2. Strong 6. Highly bb Financial Policy: Yes BB- Intermediate Leveraged Negative (-1 notch) Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Matterhorn Financing & 3. 4. Fair 4. Fair 6. Highly b B Cy S.C.A. Intermediate Leveraged Risk MegaFon OJSC 4. 3. 3. 2. Modest bbb+ Financial Policy: BBB- Moderately Satisfactory Satisfactory Negative (-1 notch) High Risk Comparable Ratings Analysis: Negative (-1 notch) Metelem Holding 3. 3. 3. 5. bb Yes BB Company Ltd. Intermediate Satisfactory Satisfactory Aggressive Risk Mobile TeleSystems 4. 3. 3. 2. Modest bbb+ Financial Policy: Yes bb+ (OJSC) Moderately Satisfactory Satisfactory Negative (-1 notch) High Risk Comparable Ratings Analysis: Negative (-1 notch) NorCell 1B AB (publ) 3. 3. 3. 6. Highly b+ Comparable Ratings B Intermediate Satisfactory Satisfactory Leveraged Analysis: Negative (-1 Risk notch) Numericable Group S.A. 3. 3. 3. 5. bb Yes B+ Intermediate Satisfactory Satisfactory Aggressive Risk Oman 3. 3. 3. 1. Minimal a- Financial Policy: Yes BBB+ Telecommunications Intermediate Satisfactory Satisfactory Negative (-1 notch) Co. Risk Comparable Ratings Analysis: Negative (-1 notch) Ooredoo Q.S.C. 4. 3. 3. 4. Significant bbb- Yes A- Moderately Satisfactory Satisfactory High Risk Orange S.A. 3. 2. Strong 2. Strong 3. bbb+ Yes BBB+ Intermediate Intermediate Risk Play Holdings 2 S.a.r.l 3. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Intermediate Aggressive Analysis: Negative (-1 Risk notch) Portugal Telecom SGPS 3. 3. 3. 5. bb BB S.A. Intermediate Satisfactory Satisfactory Aggressive Risk RCS & RDS S.A. 3. 4. Fair 4. Fair 5. bb- Comparable Ratings B+ Intermediate Aggressive Analysis: Negative (-1 Risk notch) Rostelecom OJSC 4. 4. Fair 4. Fair 3. bb+ Yes BB+ Moderately Intermediate High Risk Saudi Telecom 3. 2. Strong 2. Strong 1. Minimal aa- Financial Policy: Yes A+ Company Intermediate Negative (-1 notch) Risk SES S.A. 3. 2. Strong 2. Strong 4. Significant bbb BBB Intermediate Risk Sunrise 3. 3. 3. 6. Highly b+ B+ Communications Intermediate Satisfactory Satisfactory Leveraged Holdings S.A. Risk Swisscom AG 3. 2. Strong 2. Strong 3. a- Yes A Intermediate Intermediate Risk
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) TDC A/S 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Telecom Italia SpA 3. 3. 3. 4. Significant bb+ BB+ Intermediate Satisfactory Satisfactory Risk Telefonica Czech 3. 3. 3. 3. bbb- BBB- Republic, a.s. Intermediate Satisfactory Satisfactory Intermediate Risk Telefonica S.A. 3. 2. Strong 2. Strong 4. Significant bbb Yes BBB Intermediate Risk Telekom Austria AG 3. 3. 3. 4. Significant bbb- Yes BBB- Intermediate Satisfactory Satisfactory Risk Telekomunikacja Polska 3. 3. 3. 3. bbb Yes bbb S.A. Intermediate Satisfactory Satisfactory Intermediate Risk Telenet Group Holding 3. 3. 3. 6. Highly b+ Yes b+ N.V. Intermediate Satisfactory Satisfactory Leveraged Risk Telenor ASA 3. 3. 3. 2. Modest bbb+ Yes A- Intermediate Satisfactory Satisfactory Risk TeliaSonera AB 3. 2. Strong 2. Strong 2. Modest a Comparable Ratings Yes A- Intermediate Analysis: Negative (-1 Risk notch) Telkom SA SOC Ltd. 3. 4. Fair 4. Fair 2. Modest bbb- Yes BBB- Intermediate Risk Turk Telekom 3. 3. 3. 3. bbb- Liquidity: Less than Yes BB+ Intermediate Satisfactory Satisfactory Intermediate adequate (-1 notch) Risk Turkcell Iletisim 4. 3. 3. 2. Modest bbb+ Financial Policy: BB+ Hizmetleri A.S. Moderately Satisfactory Satisfactory Negative (-1 notch) High Risk Management & Governance: Weak (-2 notches) Tyrol Acquisition 1 SAS 3. 2. Strong 2. Strong 6. Highly bb Capital Structure: Very B Intermediate Leveraged Negative (-2 notches) Risk Comparable Ratings Analysis: Negative (-1 notch) UAB Bite Lietuva 3. 5. Weak 5. Weak 5. b+ Comparable Ratings B Intermediate Aggressive Analysis: Negative (-1 Risk notch) Unitymedia KabelBW 3. 3. 3. 6. Highly b+ Yes bb- GmbH Intermediate Satisfactory Satisfactory Leveraged Risk UPC Holding BV 3. 2. Strong 2. Strong 6. Highly bb Financial Policy: Yes bb- Intermediate Leveraged Negative (-1 notch) Risk VimpelCom Ltd. 4. 3. 3. 4. Significant bb+ Comparable Ratings Yes BB Moderately Satisfactory Satisfactory Analysis: Negative (-1 High Risk notch)
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Breakdown Of European Corporate Rating Scores* (cont.) Virgin Media Inc. 3. 3. 3. 5. bb Financial Policy: Yes bb- Intermediate Satisfactory Satisfactory Aggressive Negative (-1 notch) Risk Vivendi S.A. 3. 3. 3. 3. bbb BBB Intermediate Satisfactory Satisfactory Intermediate Risk Vodafone Group PLC 3. 2. Strong 2. Strong 3. a- A- Intermediate Intermediate Risk Wind 3. 3. 3. 6. Highly b+ Yes BB- Telecomunicazioni SpA Intermediate Satisfactory Satisfactory Leveraged Risk Ypso Holding Sarl 3. 3. 3. 5. bb Yes B+ Intermediate Satisfactory Satisfactory Aggressive Risk Ziggo Bond Co. B.V. 3. 3. 3. 4. Significant bb+ Comparable Ratings BB Intermediate Satisfactory Satisfactory Analysis: Negative (-1 Risk notch) Average scores for 3.2 3.1 3.1 4.0 telecom & cable
TRANSPORTATION CYCLICAL
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Aguila 3 S.A. 5. High Risk 2. Strong 4. Fair 6. Highly b Yes B Leveraged AO Sovcomflot 5. High Risk 3. 4. Fair 5. bb- Yes BB+ Satisfactory Aggressive Avanza Spain S.A.U 5. High Risk 2. Strong 4. Fair 6. Highly b Comparable Ratings Yes b+ Leveraged Analysis: Positive (+1 notch) Avincis Mission Critical 5. High Risk 2. Strong 4. Fair 6. Highly b Yes B Services Holdings, Leveraged S.L.U. British Airways PLC 5. High Risk 3. 4. Fair 4. Significant bb Yes bb Satisfactory CMA CGM S.A. 5. High Risk 4. Fair 5. Weak 5. b+ B+ Aggressive Deutsche Lufthansa AG 5. High Risk 1. Excellent 3. 4. Significant bbb- Yes BBB- Satisfactory Eletson Holdings Inc. 5. High Risk 5. Weak 5. Weak 6. Highly b B Leveraged FirstGroup PLC 5. High Risk 1. Excellent 3. 4. Significant bbb- BBB- Satisfactory gategroup Holding AG 5. High Risk 3. 4. Fair 5. bb- Yes BB- Satisfactory Aggressive The Go-Ahead Group 5. High Risk 1. Excellent 3. 4. Significant bbb- Yes BBB- PLC Satisfactory Hapag-Lloyd AG 5. High Risk 5. Weak 5. Weak 5. b+ B+ Aggressive
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Nakilat Inc. 5. High Risk 1. Excellent 2. Strong 5. bb+ Comparable Ratings Yes AA- Aggressive Analysis: Positive (+1 notch) Navios Maritime 5. High Risk 3. 4. Fair 6. Highly b Management & Yes B+ Acquisition Corp. Satisfactory Leveraged Governance: Strong (+1 notch) Navios Maritime 5. High Risk 3. 4. Fair 5. bb- Management & Yes BB- Holdings Inc. Satisfactory Aggressive Governance: Strong (+1 notch) Comparable Ratings Analysis: Negative (-1 notch) Navios Maritime 5. High Risk 4. Fair 5. Weak 4. Significant bb- Management & BB Partners L.P. Governance: Strong (+1 notch) Nobina AB 5. High Risk 4. Fair 5. Weak 6. Highly b Yes B Leveraged Ryanair Holdings PLC 5. High Risk 1. Excellent 3. 1. Minimal a- Financial Policy: BBB+ Satisfactory Negative (-1 notch) SAS AB 5. High Risk 5. Weak 5. Weak 6. Highly b Comparable Ratings Yes B- Leveraged Analysis: Negative (-1 notch) Scandferries Aps 5. High Risk 3. 4. Fair 5. bb- BB- Satisfactory Aggressive Stagecoach Group PLC 5. High Risk 1. Excellent 3. 4. Significant bbb- Yes BBB- Satisfactory Average scores for 5.0 2.7 4.0 4.9 transportation cyclical
TRANSPORTATION INFRASTRUCTURE
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Abertis Infraestructuras 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Yes BBB S.A. Aeroporti di Roma SpA 3. 2. Strong 2. Strong 3. bbb+ Yes BBB+ Intermediate Intermediate Risk Aeroports de Paris 2. Low Risk 1. Excellent 1. Excellent 3. a Comparable Ratings Yes A+ Intermediate Analysis: Positive (+1 notch) Atlantia Spa 3. 2. Strong 2. Strong 3. a- Comparable Ratings Yes BBB+ Intermediate Intermediate Analysis: Negative (-1 Risk notch) Autoroutes du Sud de la 2. Low Risk 1. Excellent 1. Excellent 4. Significant a- Yes A- France S.A. Autoroutes 2. Low Risk 1. Excellent 1. Excellent 5. bbb Yes bbb Paris-Rhin-Rhone S.A. Aggressive Avinor AS 2. Low Risk 2. Strong 2. Strong 3. bbb+ Yes AA- Intermediate Azerbaijan Railways 4. 5. Weak 5. Weak 1. Minimal bb+ Comparable Ratings Yes BB+ CJSC Moderately Analysis: Negative (-1 High Risk notch)
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Cofiroute 2. Low Risk 1. Excellent 1. Excellent 3. a Yes A- Intermediate Deutsche Bahn AG 2. Low Risk 2. Strong 2. Strong 3. bbb+ Comparable Ratings Yes AA Intermediate Analysis: Positive (+1 notch) DFS Deutsche 2. Low Risk 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes AAA Flugsicherung GmbH Analysis: Positive (+1 notch) DME Ltd. 4. 4. Fair 4. Fair 1. Minimal bbb- Comparable Ratings Yes BB+ Moderately Analysis: Negative (-1 High Risk notch) Dublin Airport Authority 2. Low Risk 2. Strong 2. Strong 3. bbb+ Comparable Ratings Yes BBB PLC Intermediate Analysis: Negative (-1 notch) EMPARK 3. 2. Strong 2. Strong 6. Highly bb Comparable Ratings BB- Aparcamientos y Intermediate Leveraged Analysis: Negative (-1 Servicios, S.A. Risk notch) Ferrovial S.A. 3. 3. 3. 2. Modest bbb+ Diversification/portfolio Yes BBB Intermediate Satisfactory Satisfactory effect: Moderate (+1 Risk notch) Financial Policy: Negative (-2 notches) Ferrovie dello stato 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes BBB Italiane Intermediate Analysis: Negative (-1 Risk notch) Flughafen Zurich AG 2. Low Risk 2. Strong 2. Strong 2. Modest a Financial Policy: Yes A Negative (-1 notch) Hutchison Ports (U.K.) 2. Low Risk 2. Strong 2. Strong 5. bb+ Comparable Ratings Yes a- Ltd. Aggressive Analysis: Negative (-1 notch) JSC Georgian Railway 4. 5. Weak 5. Weak 4. Significant bb- Yes BB- Moderately High Risk Kazakhstan Temir Zholy 4. 4. Fair 4. Fair 4. Significant bb Comparable Ratings Yes BBB- Moderately Analysis: Negative (-1 High Risk notch) N.V. Luchthaven 2. Low Risk 1. Excellent 1. Excellent 3. a Yes A+ Schiphol Intermediate NATS (En Route) PLC 2. Low Risk 2. Strong 2. Strong 2. Modest a Yes AA- Norges Statsbaner AS 2. Low Risk 3. 3. 3. bbb Capital Structure: Yes AA- Satisfactory Satisfactory Intermediate Positive (+1 notch) NS Groep N.V. 2. Low Risk 3. 3. 1. Minimal a Yes A+ Satisfactory Satisfactory OAO Khabarovsky 4. 4. Fair 4. Fair 5. bb- Financial Policy: B+ Airport Moderately Aggressive Negative (-1 notch) High Risk OJSC Federal Passenger 4. 4. Fair 4. Fair 1. Minimal bbb- Comparable Ratings Yes BBB- Company Moderately Analysis: Negative (-1 High Risk notch) OJSC Novorossiysk 4. 3. 3. 5. bb Liquidity: Less than Yes BB- Commercial Sea Port Moderately Satisfactory Satisfactory Aggressive adequate (-1 notch) High Risk Russian Railways JSC 4. 3. 3. 3. bbb- Yes BBB- Moderately Satisfactory Satisfactory Intermediate High Risk
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Breakdown Of European Corporate Rating Scores* (cont.) Societe Nationale des 2. Low Risk 3. 3. 6. Highly b+ Comparable Ratings Yes A+ Chemins de Fer Belges Satisfactory Satisfactory Leveraged Analysis: Positive (+1 Holding notch) Societe Nationale des 2. Low Risk 3. 3. 3. bbb Comparable Ratings Yes AA- Chemins de Fer Satisfactory Satisfactory Intermediate Analysis: Negative (-1 Francais notch) Transnet SOC Ltd. 3. 2. Strong 2. Strong 3. bbb+ Yes BBB+ Intermediate Intermediate Risk VINCI S.A. 3. 2. Strong 2. Strong 4. Significant bbb Diversification/portfolio Yes A- Intermediate effect: Moderate (+1 Risk notch) Comparable Ratings Analysis: Positive (+1 notch) Average scores for 2.7 2.5 2.5 3.3 transportation infrastructure
UNREGULATED POWER & GAS
Corporate Industry and Country Long-term Risk Cash flow corporate Assessment Competitive Business and Government/Group credit Company (CICRA) position risk leverage Anchor Modifiers (active) support (active) rating (§) Abu Dhabi National 2. Low Risk 4. Fair 4. Fair 6. Highly b Comparable Ratings Yes A Energy Company PJSC Leveraged Analysis: Positive (+1 notch) Atomic Energy Power 5. High Risk 3. 4. Fair 4. Significant bb Yes BBB- Corporation JSC Satisfactory Centrica PLC 4. 2. Strong 3. 2. Modest bbb+ Comparable Ratings A- Moderately Satisfactory Analysis: Positive (+1 High Risk notch) CEZ a.s. 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes A- Intermediate Analysis: Positive (+1 Risk notch) DONG Energy A/S 4. 3. 3. 4. Significant bbb- Comparable Ratings Yes BBB+ Moderately Satisfactory Satisfactory Analysis: Positive (+1 High Risk notch) Drax Power Ltd. 4. 4. Fair 4. Fair 4. Significant bb BB Moderately High Risk Edison SpA 4. 3. 3. 4. Significant bb+ Yes BBB+ Moderately Satisfactory Satisfactory High Risk Eesti Energia AS 3. 3. 3. 3. bbb- Yes BBB+ Intermediate Satisfactory Satisfactory Intermediate Risk Fortum Oyj 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes A- Intermediate Analysis: Positive (+1 Risk notch) GDF SUEZ S.A. 3. 1. Excellent 1. Excellent 4. Significant a- Diversification/portfolio Yes A Intermediate effect: Moderate (+1 Risk notch) Georgian Oil and Gas 5. High Risk 4. Fair 5. Weak 6. Highly b- Yes B Corporation JSC Leveraged
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1346366 | 301135083 European Corporate Rating Scores Update: July 1, 2014
Breakdown Of European Corporate Rating Scores* (cont.) Landsvirkjun 4. 4. Fair 4. Fair 6. Highly b Comparable Ratings Yes BB Moderately Leveraged Analysis: Positive (+1 High Risk notch) Mosenergo (AO) 4. 4. Fair 4. Fair 4. Significant bb Financial Policy: Yes BB Moderately Negative (-1 notch) High Risk Public Power Corp. S.A. 4. 5. Weak 5. Weak 5. b+ Comparable Ratings Yes B Moderately Aggressive Analysis: Negative (-1 High Risk notch) RusHydro (OJSC) 5. High Risk 3. 4. Fair 4. Significant bb Yes BB+ Satisfactory Samruk-Energy JSC 5. High Risk 5. Weak 5. Weak 4. Significant bb- Financial Policy: Yes BB+ Negative (-1 notch) Statkraft AS 4. 1. Excellent 2. Strong 4. Significant bbb Yes A- Moderately High Risk Vattenfall AB 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes A- Intermediate Analysis: Positive (+1 Risk notch) Verbund AG 3. 2. Strong 2. Strong 4. Significant bbb Comparable Ratings Yes A- Intermediate Analysis: Positive (+1 Risk notch) Average scores for 3.8 3.0 3.3 4.2 unregulated power & gas
*Scores range from 1.0 to 5.0, where 5.0 is high. OEM--Original equipment manufacturer. ¶Indicated ratings apply to regulated operating subsidiaries. Holding company ratings could be lower due to Group Rating Methodology. §Long-term rating includes Rating Above the Sovereign criteria impact, where applicable.
Related Criteria And Research
Related Criteria • Corporate Methodology, Nov. 19, 2013
Related Research • European Corporate Rating Scores By Industry Sector As Of Jan. 22, 2014, Jan. 24, 2014
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Additional Contact: Industrial Ratings Europe; [email protected]
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