NewMed Energy

Capital/Financing Update • Oct 23, 2023

RatingAction: Moody's places Leviathan Bond's Ba3 ratings onreviewfor downgrade

23Oct 2023

London,October 23, 2023 -- Moody's InvestorsService (Moody's) has today placed theBa3 ratings on the senior secured notes issued by LeviathanBond Ltd.(LeviathanBond) on review for downgrade.Previously, the outlook was stable.

LeviathanBond is a special purpose vehicle and the notes are secured on the 45.34% working interest of NewMed Energy LimitedPartnership (NewMedEnergy)in the Leviathan gas project, located off the coast of Israel, and associated assets.

RATINGS RATIONALE/FACTORSTHATCOULD LEADTOAN UPGRADEOR DOWNGRADEOFTHE RATINGS

Today's rating action is triggered by the unexpected and violent conflict between Israel and Hamas, which include the loss of life and increases Israel's already relatively high exposure to geopoliticalrisks. Moody's placed theA1 ratings of theGovernment of Israel on review for downgrade on 19October 2023.Forfurtherinformation, please referto the sovereign press release:"Moody's places Israel'sA1 ratings on review for downgrade" (https://ratings.moodys.com/ratings-news/410047).

LeviathanBond derives its cash flows entirely from the Leviathan field, which is located 130 km offshore, in the northern part of the country.The field is connected to the Leviathan platform some 10 km off the coast of Israel.Since the start of the military conflict, the Leviathan field has been operating at full capacity and there has been no disruption to its operations. Following the suspension of production at theTamarfield on 9October, demand for gas from Leviathan in the domestic market has increased, with some shift in Leviathan's gas sales as permitted underthe term of the long-term gas sale and purchase agreements. However, the rise in geopoliticalrisk, and in particularthe military activity in the northern part of the country, increases the risk of asset damage, operational issues, and government intervention, all of which could have a material impact on the credit quality of LeviathanBond.

As of end-June 2023, NewMedEnergy had cash and short-term investments of around USD87 million. However, this amount would have increased, given the project's strong free cash flow generation.As a result, Moody's believes that the project company would be able to cover operating expenses and interest expenses for several months, if production was temporarily interrupted. LeviathanBond does not have any immediate refinancing needs and its next debt maturity is related to the USD600 million bond due in June 2025.

LeviathanBond could be adversely affected by physical damage to the Leviathan's assets or any associated infrastructure.There is also a risk of a pre-emptive suspension of production from the field. Moody's notes that NewMedEnergy maintains a comprehensive insurance package for physical damage risk and business interruption. These insurance policies apply in an event of a political violence, and they are additional to thePropertyTax and Compensation Fund, which is provided by theGovernment of Israel. However, as the situation is evolving, benefits of any insurance package are difficult to assess. Furthermore, insurance for business interruption would not cover a situation in which theGovernment of Israel were to order a suspension of the Leviathan field's production.

The review will considerthe risks to LeviathanBond's cash flows, its exposure to geopoliticalrisks, as well as any offsetting measures that may be available in the context of the evolving situation.

Moody's could confirm LeviathanBond's ratings if(1)its review concluded that the current military conflict could be resolved without lasting damage to Leviathan's operations and the geopoliticalrisk could be accommodated at the currentrating level;(2)there were no adverse changes to the company's off-take arrangements orits counterparties; and (3)there were no concerns about LeviathanBond's liquidity.

The ratings could be downgraded if(1) Leviathan's assets or operations were adversely impacted by the military conflict and this was not offset by any mitigating measures from the government, shareholders orthrough the insurance coverage;(2) Moody's review concluded that geopoliticalrisk could not be accommodated at the current rating level;(3)there were adverse changes to the company's off-take arrangements orits counterparties; or(4)there were concerns about LeviathanBond's liquidity.

PRINCIPALMETHODOLOGY

The principal methodology used in these ratings wasGenericProject Finance Methodology published in January 2022 and available at .Alternatively, please see the Rating Methodologies page on for a copy of this methodology. https://ratings.moodys.com/rmc-documents/361401 https://ratings.moodys.com

COMPANYPROFILE

LeviathanBond Ltd. is a special purpose vehicle established to issue bonds secured by a first priority fixed pledge of NewMedEnergy's 45.34% working interest in the Leviathan gas project as well as certain associated assets. Recourse against NewMedEnergy is limited to the collateral pledged by the sponsor.

REGULATORYDISCLOSURES

Forfurther specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions andSensitivity toAssumptions in the disclosure form. Moody's RatingSymbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.

Forratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices.Forratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the creditrating action on the support provider and in relation to each particular creditrating action for securities that derive their creditratings from the support provider's creditrating. For provisionalratings, this announcement provides certain regulatory disclosures in relation to the provisionalrating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed priorto the assignment of the definitive rating in a mannerthat would have affected the rating.Forfurtherinformation please see the issuer/deal page forthe respective issuer on https://ratings.moodys.com.

For any affected securities orrated entities receiving direct credit support from the primary entity(ies) of this creditrating action, and whose ratings may change as a result of this creditrating action, the associated regulatory disclosures will be those of the guarantor entity.Exceptions to this approach exist forthe following disclosures, if applicable to jurisdiction:AncillaryServices, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity orits designated agent(s) and issued with no amendmentresulting from that disclosure.

These ratings are solicited.Please referto Moody'sPolicy for Designating andAssigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com.

Regulatory disclosures contained in this press release apply to the creditrating and, if applicable, the related rating

outlook orrating review.

TheGlobalScale Credit Rating(s) discussed in this Credit RatingAnnouncement was(were)issued by one of Moody' affiliates outside theEU and is(are) endorsed for use in theEU in accordance with theEU CRARegulation.

Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the issuer/deal page on https://ratings.moodys.com for additionalregulatory disclosures for each credit rating.

Joanna Fic SeniorVicePresident Infrastructure FinanceGroup Moody's InvestorsService Ltd. One CanadaSquare CanaryWharf London,E14 5FA UnitedKingdom JOURNALISTS: 44 20 7772 5456 ClientService: 44 20 7772 5454

NeilGriffiths-Lambeth Associate Managing Director Infrastructure FinanceGroup JOURNALISTS: 44 20 7772 5456 ClientService: 44 20 7772 5454

ReleasingOffice: Moody's InvestorsService Ltd. One CanadaSquare CanaryWharf London,E14 5FA UnitedKingdom JOURNALISTS: 44 20 7772 5456 ClientService: 44 20 7772 5454

© 2023 Moody's Corporation, Moody's InvestorsService, Inc., Moody'sAnalytics, Inc. and/ortheirlicensors and affiliates (collectively,"MOODY'S").Allrights reserved.

CREDITRATINGSISSUED BYMOODY'S CREDITRATINGSAFFILIATESARETHEIR CURRENTOPINIONS OFTHE RELATIVEFUTURE CREDITRISKOFENTITIES, CREDITCOMMITMENTS,OR DEBTOR DEBT-LIKE SECURITIES,AND MATERIALS,PRODUCTS,SERVICESAND INFORMATION PUBLISHED BYMOODY'S (COLLECTIVELY,"PUBLICATIONS") MAYINCLUDESUCH CURRENTOPINIONS. MOODY'S DEFINES CREDITRISKASTHE RISKTHATAN ENTITYMAYNOTMEETITS CONTRACTUALFINANCIAL OBLIGATIONSASTHEYCOME DUEANDANYESTIMATED FINANCIALLOSSINTHEEVENTOF DEFAULT OR IMPAIRMENT.SEEAPPLICABLE MOODY'S RATINGSYMBOLSAND DEFINITIONSPUBLICATION FOR INFORMATIONONTHETYPESOF CONTRACTUALFINANCIALOBLIGATIONSADDRESSED BYMOODY'S

CREDITRATINGS. CREDITRATINGS DONOTADDRESSANYOTHER RISK, INCLUDINGBUTNOTLIMITED TO: LIQUIDITYRISK, MARKETVALUE RISK,OR PRICEVOLATILITY. CREDITRATINGS, NON-CREDIT ASSESSMENTS("ASSESSMENTS"),ANDOTHEROPINIONSINCLUDED IN MOODY'SPUBLICATIONSARE NOTSTATEMENTSOF CURRENTOR HISTORICALFACT. MOODY'SPUBLICATIONS MAYALSOINCLUDE QUANTITATIVE MODEL-BASED ESTIMATESOF CREDITRISKAND RELATEDOPINIONSOR COMMENTARYPUBLISHED BYMOODY'SANALYTICS, INC.AND/OR ITSAFFILIATES. MOODY'S CREDIT RATINGS,ASSESSMENTS,OTHEROPINIONSAND PUBLICATIONS DONOTCONSTITUTEOR PROVIDE INVESTMENTOR FINANCIALADVICE,AND MOODY'S CREDITRATINGS,ASSESSMENTS,OTHER OPINIONSAND PUBLICATIONSARE NOTAND DONOTPROVIDE RECOMMENDATIONSTOPURCHASE, SELL,OR HOLD PARTICULAR SECURITIES. MOODY'S CREDITRATINGS,ASSESSMENTS,OTHER OPINIONSAND PUBLICATIONS DONOTCOMMENTONTHESUITABILITYOFAN INVESTMENTFORANY PARTICULAR INVESTOR. MOODY'SISSUESITS CREDITRATINGS,ASSESSMENTSANDOTHER OPINIONSAND PUBLISHESITSPUBLICATIONSWITHTHEEXPECTATIONAND UNDERSTANDINGTHAT EACH INVESTORWILL,WITH DUE CARE, MAKEITSOWN STUDYAND EVALUATIONOFEACH SECURITY THATIS UNDER CONSIDERATION FOR PURCHASE, HOLDING,OR SALE.

MOODY'S CREDITRATINGS,ASSESSMENTS,OTHEROPINIONS,AND PUBLICATIONSARE NOT INTENDED FOR USEBYRETAILINVESTORSAND ITWOULD BE RECKLESSAND INAPPROPRIATEFOR RETAILINVESTORSTOUSE MOODY'S CREDITRATINGS,ASSESSMENTS,OTHEROPINIONSOR PUBLICATIONSWHEN MAKINGAN INVESTMENTDECISION. IFIN DOUBTYOU SHOULD CONTACTYOUR FINANCIALOROTHER PROFESSIONALADVISER.

ALLINFORMATION CONTAINED HEREIN ISPROTECTED BYLAW, INCLUDINGBUTNOTLIMITEDTO, COPYRIGHTLAW,AND NONEOFSUCH INFORMATION MAYBE COPIEDOROTHERWISE REPRODUCED, REPACKAGED, FURTHERTRANSMITTED,TRANSFERRED, DISSEMINATED, REDISTRIBUTEDOR RESOLD,OR STORED FOR SUBSEQUENTUSEFORANYSUCH PURPOSE, INWHOLEOR IN PART, IN ANYFORM OR MANNEROR BYANYMEANSWHATSOEVER,BYANYPERSONWITHOUTMOODY'S PRIORWRITTEN CONSENT.

MOODY'S CREDITRATINGS,ASSESSMENTS,OTHEROPINIONSAND PUBLICATIONSARE NOT INTENDED FOR USEBYANYPERSONASABENCHMARKASTHATTERM IS DEFINED FOR REGULATORY PURPOSESAND MUSTNOTBE USED INANYWAYTHATCOULD RESULTINTHEM BEINGCONSIDERED BENCHMARK.

All information contained herein is obtained by MOODY'Sfrom sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as otherfactors, however, all information contained herein is provided "ASIS" without warranty of any kind. MOODY'Sadopts all necessary measures so that the information it uses in assigning a creditrating is of sufficient quality and from sources MOODY'Sconsiders to be reliable including, when appropriate, independent third-party sources. However, MOODY'Sis not an auditor and cannot in every instance independently verify or validate information received in the creditrating process orin preparing itsPublications.

To the extent permitted by law, MOODY'Sand its directors, officers, employees, agents,representatives, licensors an suppliers disclaim liability to any person or entity for any indirect, special, consequential, orincidental losses or damages whatsoever arising from orin connection with the information contained herein orthe use of orinability to use any such information, even if MOODY'Sor any of its directors, officers, employees, agents,representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to:(a any loss of present or prospective profits or(b) any loss or damage arising where the relevant financial instrument is not the subject of a particular creditrating assigned by MOODY'S.

To the extent permitted by law, MOODY'Sand its directors, officers, employees, agents,representatives, licensors an suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any othertype of liability that, forthe avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'Sor any of its directors, officers, employees, agents,representatives, licensors or suppliers, arising from orin connection with the information contained herein orthe use of orinability to use any such information.

NOWARRANTY,EXPRESSOR IMPLIED,ASTOTHEACCURACY,TIMELINESS, COMPLETENESS, MERCHANTABILITYOR FITNESSFORANYPARTICULAR PURPOSEOFANYCREDITRATING, ASSESSMENT,OTHEROPINIONOR INFORMATION ISGIVENOR MADEBYMOODY'SINANYFORM OR MANNERWHATSOEVER.

Moody's InvestorsService, Inc., a wholly-owned creditrating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's InvestorsService, Inc. have, priorto assignment of any creditrating, agreed to pay to Moody's InvestorsService, Inc. for creditratings opinions and services rendered by it fees ranging from \$1,000 to approximately \$5,000,000. MCOand Moody's InvestorsService also maintain policies and procedures to address the independence of Moody's InvestorsService creditratings and creditrating processes. Information regarding certain affiliations that may exist between directors of MCOand rated entities, and between entities who hold creditratings from Moody's InvestorsService, Inc. and have also publicly reported to theSEC an ownership interest in MCOof more than 5%, is posted annually at underthe heading "Investor Relations—CorporateGovernance—Director andShareholderAffiliationPolicy." www.moodys.com

Additional terms forAustralia only:Any publication intoAustralia of this document is pursuant to theAustralian Financial Services License of MOODY'Saffiliate, Moody's InvestorsServicePty LimitedABN 61 003 399 657AFSL336969 and/or Moody'sAnalyticsAustraliaPty LtdABN 94 105 136 972AFSL383569 (as applicable).This document is intended to be provided only to "wholesale clients" within the meaning of section 761Gof the CorporationsAct 2001. By continuing to access this document from withinAustralia, you represent to MOODY'Sthat you are, or are accessing the document as a representative of, a "wholesale client" and that neither you northe entity you represent will directly orindirectly disseminate this document orits contents to "retail clients" within the meaning of section 761G of the CorporationsAct 2001. MOODY'Screditrating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's JapanK.K.("MJKK")is a wholly-owned creditrating agency subsidiary of Moody'sGroup JapanG.K., which is wholly-owned by Moody'sOverseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody'sSFJapanK.K.("MSFJ")is a wholly-owned creditrating agency subsidiary of MJKK. MSFJ is not a Nationally RecognizedStatistical RatingOrganization ("NRSRO").Therefore, creditratings assigned by MSFJ are Non-NRSROCredit Ratings. Non-NRSROCredit Ratings are assigned by an entity that is not a NRSROand, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKKand MSFJ are creditrating agencies registered with the Japan FinancialServicesAgency and theirregistration numbers are FSA Commissioner(Ratings) No. 2 and 3 respectively.

MJKKor MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKKor MSFJ (as applicable) have, priorto assignment of any creditrating, agreed to pay to MJKKor MSFJ (as applicable)for creditratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.

MJKKand MSFJ also maintain policies and procedures to address Japanese regulatory requirements.