CHORUS LIMITED — Audit Report / Information 2019

Nov 19, 2019

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Chorus Limited Level 10, 1 Willis Street P O Box 632 Wellington New Zealand

Email: company.secretary@chorus.co.nz

STOCK EXCHANGE ANNOUNCEMENT

20 November 2019

S&P revises Chorus debt to EBITDA threshold upwards

S&P has released the attached update on Chorus.

The update states that the downgrade threshold for Chorus has been revised to a debt to EBITDA ratio of 4.25x at the current rating level, compared with a debt to EBITDA ratio of 4x previously.

The long-term rating remains at BBB stable.

ENDS

For further information:

Brett Jackson Investor Relations Manager Phone: +64 4 896 4039 Mobile: +64 (27) 488 7808 Email: brett.jackson@chorus.co.nz

Nathan Beaumont Stakeholder Communications Manager Phone: +64 4 896 4352 Mobile: +64 (21) 243 8412 Email: Nathan.Beaumont@chorus.co.nz

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Chorus Ltd.

Primary Credit Analyst:

Ieva Erkule, Melbourne (61) 3-9631-2085; ieva.erkule@spglobal.com

Secondary Contact:

Graeme A Ferguson, Melbourne (61) 3-9631-2098; graeme.ferguson@spglobal.com

Table Of Contents

Credit Highlights

Outlook

Our Base-Case Scenario

Company Description

Business Risk

Financial Risk

Liquidity

Covenant Analysis

Environmental, Social, And Governance

Issue Ratings - Subordination Risk Analysis

Reconciliation

Ratings Score Snapshot

Related Criteria

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Business Risk: STRONG Vulnerable Excellent Financial Risk: SIGNIFICANT Highly leveraged Minimal bbb bbb bbb Anchor Modifiers Group/Gov't	Issuer Credit Rating
	BBB/Stable/--

Credit Highlights

Overview
Key Strengths	Key Risks
Strong market position as owner of the dominant fixed-line	Network volume risks associated with wireless substitution and
telecommunications wholesale access network in New Zealand	line loss to local fiber companies
Improved revenue visibility due to new regulatory framework	Unforeseen cost escalation risks associated with the Ultra-Fast
	Broadband (UFB) rollout
High capital barriers to competition and strong operating cash flow	Lower-than-anticipated household growth may limit overall
	market share
Financial policy framework that is supportive of the 'BBB' rating	Maintaining legacy copper network and nonmandatory migration
	to fiber

We have revised the downgrade threshold for Chorus Ltd. to a debt to EBITDA of 4.25x at the current rating level, compared with a debt to EBITDA of 4x previously. This revision reflects our view of the company's overall robust credit profile, underpinned by its leading position in New Zealand's fixed-line network. In our view, the execution of, and cost escalation risks associated with, the UFB fiber-to-the-home (FTTH) network rollout have reduced, given that 82% of the UFB rollout is now complete. The year ended June 30, 2019, was Chorus' peak rollout year, and UFB uptake has increased from 45% to 53%. We, therefore, have better visibility over the company's free cash generation over the next few years.

The proposed new regulatory framework is favorable for Chorus in so far as it should provide transparency and predictability in future price setting for the fiber network. Under the new regulation, a utility-like "building block" regulatory framework will be applicable to the fiber network from 2022. We don't currently view Chorus as a utility-like company given nascent wireless substitution risks. That said, we will continue to monitor Chorus' industry characteristics.

We believe Chorus will maintain a disciplined approach to shareholder returns and financial policy decisions. Chorus remains committed to supporting credit quality at the current rating level. We expect debt to EBITDA to not exceed 4.25x over the next two years.

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Outlook: Stable

The stable outlook reflects our expectation that Chorus' strong network position, increasing free operating cash generation, enhanced financial flexibility, and disciplined approach to capital management will offset risks associated with the group's remaining FTTH capital-expenditure program and risks associated with wireless substitution, line loss to other local fiber companies, and migration from its legacy copper network.

We will monitor the extent to which Chorus is forced to respond to wireless substitution risk in the context of its new regulatory framework. We may adjust the company's debt capacity at the 'BBB' rating level, either upward or downward, to reflect the prevailing competitive landscape.

Downside scenario

Downward rating pressure could occur if debt-to-EBITDA exceeds 4.25x or a material decline in the group's covenant headroom or liquidity were to occur.

Over the longer term, higher-than-expected wireless substitution that significantly worsens the group's earnings generation or stability could put downward pressure on the rating or debt capacity at the 'BBB' rating level.

Upside scenario

We consider upward ratings pressure to be unlikely over the next few years, given the company's capital-management objectives and UFB funding requirements. Nonetheless, the establishment of a regulatory track record and resilience to wireless substitution risks could provide incrementally higher debt capacity at the 'BBB' rating level.

Our Base-Case Scenario

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Assumptions

Key Metrics

• GDP growth in New Zealand in 2019 and 2020 of 2.5%;

• Population growth leading to increase in premises that drive underlying market growth for telecommunications.

	Year end June 30	2019A	2020F	2021F
	Debt to EBITDA (x) FFO to debt (%) FOCF to debt	4x 19.6 (12.3%)	<4.25x 18-20 About (7%)	<4.25x 18-20 About (1%)

• Negative low single-digit revenue growth fiscal 2020, A--Actual. F--Forecast. FFO--Funds from operations.

• driven by copper line disconnections that are offset FOCF--Free operating cash flow.

• by fiber connections. Moderate revenue growth likely thereafter.

• Fully adjusted EBITDA margins of about 66% from 2020;

• Adjusted EBITDA to stabilize at the NZ$640 million-NZ$660 million range over the next two forecast years;

• Gross capital expenditure of about NZ$700 million in fiscal 2020 (before any offset from government contributions), driven by the rollout of UFB 1 and 2; and

• Dividend of 24 cents per share with a dividend reinvestment plan.

Base-case projections

In our view, EBITDA growth will be modest in the medium term. We expect reduced connection revenues will be partly offset by cost-reduction initiatives.

Chorus' focus on cost-reduction initiatives will drive efficiencies. The company is introducing new digital solutions to drive down network maintenance costs and deliver IT operating cost savings. Furthermore, the company recently announced a workforce restructuring (affecting around 500 roles), which we believe should have an enduring benefit to Chorus' earnings profile.

Financial flexibility is likely to improve. We anticipate material free operating cash flow as the fiber broadband rollout nears completion, which should progressively improve Chorus' financial flexibility.

Company Description

Chorus is a provider of telecommunications infrastructure throughout New Zealand. The company is the owner of the majority of telephone lines and exchange equipment in New Zealand and responsible for building approximately 75% of the new fiber optic UFB network. The government-backed UFB will cover 87% of the population, with stage UFB1 (75% of the population) due to complete in December 2019 and stage UFB2 (12%) in 2022.

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Chorus owns and operates the majority of New Zealand's fixed-line telecom access network, including the legacy copper network. The group provides wholesale access to copper and fiber networks to retail service providers. In 2011, Chorus was structurally separated from Telecom New Zealand, which was later rebranded as Spark New Zealand prior to its rollout of the UFB.

Chart 1

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Business Risk: Strong

The group's ownership of the dominant fixed-line telecommunications wholesale access network in New Zealand and high capital barriers to competition underpin the business strengths. Tempering these strengths are network volume risks associated with wireless network substitution and competition from local fiber companies.

We expect increasing data consumption to support demand for Chorus' fiber network due to increasing demand for data-intensive products and services (such as video and audio streaming, online gaming services, and cloud storage services). Data usage on the Chorus network has continued to grow rapidly over the past three years. Average monthly data usage has increased from 123 gigabytes to 279 gigabytes, and fiber customers are averaging 360 gigabytes a month.

As the UFB rollout gathers pace, New Zealand's fiber adoption rate is more than double the average worldwide rate and second to Japan. About 44% of New Zealand consumers now primarily access the internet through a fiber connection. We generally view fixed-line fiber characteristics as faster, less prone to congestion, have longer life-cycles, more scalable, more reliable, and are less expensive to operate and maintain. In our opinion, these characteristics materially temper wireless substitution risks.

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Chart 2

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Nevertheless, we view the risk of wireless network substitution as meaningful. Vertically-integrated mobile network operators are incentivized to bypass fixed-line wholesalers in order to capture the full value chain. Average data usage statistics are skewed toward high-volume users, leaving a sizable addressable market available to mobile network operators, who are likely to target a sizable market segment of lower demand users in higher-density metropolitan locations. We also note that mobile network operators make up the bulk of fixed network retailers who act as "gatekeepers", providing them with some flexibility to direct customers to the most profitable network.

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Chart 3

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That said, wireless broadband technology has capacity constraints that are not easily surmounted, at least in the medium term. Moreover, we view the competitive intensity of New Zealand's mobile market as benign relative to other developed markets. Our cellular investment projections imply that wireless substitution will likely be incremental and over an extended period.

We believe fixed wireless broadband could reach about 15% of New Zealand's population within the next few years and could be materially higher over the longer term. Chorus also faces line losses to local fiber companies in regions where the company does not own the fiber network. Chorus has responded with a number of initiatives including promoting its existing fiber and copper networks, incentivizing retail service providers, and investing in better customer experience particularly during installation.

In our view, the execution of, and cost escalation risks associated with, the UFB FTTH network rollout have reduced, given that 82% of the UFB rollout is now complete. Fiscal 2019 was the peak buildout year and Chorus' capital expenditure peaked at about NZ$804 million, with about 83% relating to fiber assets. Chorus' capital expenditure is likely to decline significantly post year end 2020 due to completion of UFB1 and the majority of the UFB2/2+ rollout. Furthermore, Chorus has demonstrated a solid track record of streamlining the rollout process. This mitigates the risk of cost escalation for UFB2/2+, which extends the fiber network to more remote rural areas and lengthens the

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build-out period to beyond 2022.

Chart 4

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In November 2018, the Telecommunications (New Regulatory Framework) Amendment Act passed by the Government of New Zealand. Under the new regulation, a utility-like "building block" regulatory framework will be applicable to the fiber investment from 2022. The New Zealand Commerce Commission (NZCC) regulates the prices that Chorus can charge for use of its local copper lines and broadband services. Chorus has pricing certainty on its copper and fiber products until 2022, after which the NZCC will apply a utility-like "building block" regulatory framework for fiber. The government intends to deregulate Chorus' copper network post-2020 in areas where fiber is available. We note that the NZCC released its draft Fibre Input Methodologies Decision on Nov. 19, 2019. The draft decision will be followed by a final Input Methodologies decision in mid-2020, and then Price-Quality decisions in mid-2021.

We consider that the proposed regulatory framework should provide Chorus with transparency and predictability in future price setting for the fiber network. However, it does not fully offset underlying risks associated with the telecommunications industry, given that Chorus remains exposed to competition from alternative technologies as well as other fiber companies.

In our view, deregulation of the copper network may require Chorus to change its pricing and investment strategy for its copper network as it competes with alternative technologies and seeks to migrate customers to its fiber network.

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Unlike Australia's National Broadband Network (NBN), there will be no forced migration from the copper network.

Peer comparison

We view Telekom Malaysia Bhd. (A-/Stable/--) and Vector Ltd. (BBB/Stable/--) as relevant peers for Chorus with their strong positions in respective markets. We consider Vector Ltd., a electricity and gas distribution company in New Zealand, the most comparable rated peer for Chorus. We note that Chorus' business risk profile is weaker than Vector's due to competitive challenges to Chorus' network position from wireless network substitution and line losses to local fiber companies.

Among the New Zealand regulated utilities we rate, Vector has a greater exposure to unregulated cash flow. This is captured in our assessment of a strong business risk profile.

Telekom Malaysia is the dominant fixed-line, data, and broadband operator in Malaysia. Furthermore, the company benefits from a moderately high likelihood of extraordinary government support from the Malaysian government.

Table 1

Chorus Ltd.--Peer Comparison

Industry sector: Misc telecommunications	Industry sector: Misc telecommunications
	Chorus Ltd. Telekom Malaysia Bhd. Vector Ltd.
Ratings as of Nov. 15, 2019	BBB/Stable/(NR) A-/Stable/-- BBB/Stable/NR
	--Fiscal year ended--
	June 30, 2019 Dec. 31, 2018 June 30, 2019
(Mil. Mix currencies)	NZ$ RMB NZ$
Revenue	970.0 11,819.3 1,029.7
EBITDA	636.3 3,680.4 485.8
Funds from operations (FFO)	500.3 2,918.3 285.0
Interest expense	176.0 587.7 127.6
Cash interest paid	133.0 567.9 139.2
Cash flow from operations	492.0 2,883.0 272.2
Capital expenditure	806.0 2,263.6 333.7
Free operating cash flow (FOCF)	(314) 619.4 (61.5)
Discretionary cash flow (DCF)	(363) 155.5 (234.4)
Cash and short-term investments	273.0 2,758.3 27.6
Debt	2,553.0 7,350.0 2,548.2
Equity	979.0 7,015.5 2,502.5
Adjusted ratios
EBITDA margin (%)	65.6 31.1 47.2
Return on capital (%)	7.4 10.5 4.8
EBITDA interest coverage (x)	3.6 6.3 3.8
FFO cash interest coverage (x)	4.8 6.1 3.0
Debt/EBITDA (x)	4.0 2.0 5.2
FFO/debt (%)	19.6 39.7 11.2
Cash flow from operations/debt (%)	19.3 39.2 10.7
FOCF/debt (%)	(12.3) 8.4 (2.4)

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Table 1

Chorus Ltd.--Peer Comparison	(cont.)
DCF/debt (%)	(14.2)	2.1	(9.2)

RMB--Chinese renminbi. NZ$--New zealand dollar.

Financial Risk: Significant

We consider Chorus' financial policy framework to be supportive of the 'BBB' rating on the group. This includes our expectation that the group will actively manage debt to EBITDA below 4.25x on a long-run basis. In addition, we expect operating cash flows to incrementally support Chorus' funding requirements during the rollout period. We anticipate material free operating cash flow generation as the fiber broadband rollout nears completion, which should improve the cushion in Chorus' credit metrics over time.

Under our base-case forecasts, we expect the company's fully adjusted debt-to-EBITDA to track at about 4.1x as it reaches the peak of its build in 2020. Nonetheless, we expect the company to manage its dividends and other capital initiatives, if required, to maintain an adequate level of rating headroom in the event of an unexpected and material escalation in competition or UFB build costs. In our view, Chorus has increasing flexibility–under a range of proposed revenue, cost, and capital management initiatives to temper the impact and maintain a financial risk profile consistent with the 'BBB' rating.

Chart 5

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About half of the UFB build cost is funded by payments from Crown Infrastructure Partners (CIP, a New Zealand government-owned entity), through its CIP securities issued to Chorus in the form of debt and equity-like securities. We treat the equity securities as 100% equity in our financial ratio calculations, and the net present value of the debt securities as 100% debt.

We note that under this funding structure, there is no cash impact on Chorus until 2025. CIP debt securities are unsecured, non-interest bearing, and carry no voting rights. Chorus is required to redeem the securities in tranches from June 30, 2025 to 2036 by repaying the issue price to the holder. Dividends will become payable on a portion of the CIP equity securities from 2025 (2030 for UFB2 and UFB2+), with the portion of CIP equity securities that attract dividends increasing over time.

Financial summary

Table 2

Chorus Ltd.--Financial Summary

Industry sector: Misc telecommunications

	--Fiscal year ended Jun. 30--
	2019 2018 2017 2016 2015
(Mil. NZ$)
Revenue	970.0 990.0 1,040.0 1,008.0 1,006.0
EBITDA	636.3 653.3 637.8 599.7 607.5
Funds from operations (FFO)	500.3 502.3 476.1 426.1 420.1
Interest expense	176.0 153.0 147.6 144.6 147.4
Cash interest paid	133.0 121.0 123.6 126.6 139.4
Cash flow from operations	492.0 504.0 524.4 433.9 414.1
Capital expenditure	806.0 766.0 616.5 569.0 589.0
Free operating cash flow (FOCF)	(314) (262) (92.1) (135.1) (174.9)
Discretionary cash flow (DCF)	(363) (305) (136.1) (150.1) (174.9)
Cash and short-term investments	273.0 50.0 170.0 102.0 80.0
Gross available cash	273.0 50.0 170.0 102.0 80.0
Debt	2,553.0 2,270.0 2,035.1 1,933.6 1,912.5
Equity	979.0 1,022.0 944.0 871.0 819.0
Adjusted ratios
EBITDA margin (%)	65.6 66.0 61.3 59.5 60.4
Return on capital (%)	7.4 8.7 10.5 10.0 10.8
EBITDA interest coverage (x)	3.6 4.3 4.3 4.1 4.1
FFO cash interest coverage (x)	4.8 5.2 4.9 4.4 4.0
Debt/EBITDA (x)	4.0 3.5 3.2 3.2 3.1
FFO/debt (%)	19.6 22.1 23.4 22.0 22.0
Cash flow from operations/debt (%)	19.3 22.2 25.8 22.4 21.7
FOCF/debt (%)	(12.3) (11.5) (4.5) (7.0) (9.1)
DCF/debt (%)	(14.2) (13.4) (6.7) (7.8) (9.1)

NZ$--New zealand dollar.

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Liquidity: Adequate

We consider Chorus' liquidity to be adequate, reflecting our expectation that the group's sources of liquidity will cover its uses by more than 1.2x over the next 12 months. We also expect the company's net sources to remain positive even if EBITDA were to decline by 15%.

Also supporting the group's liquidity is its sound relationships with banks as well as its generally high standing in credit markets. Chorus has accessed funding in the domestic New Zealand and euro medium-term note markets.

At June 30, 2019, we expect Chorus to have the following sources and uses of liquidity over the 12 months ending June 30, 2020:

Principal Liquidity Sources

Principal Liquidity Uses

• Available cash of about NZ$273 million;

• Cash FFO of NZ$450 million-NZ$480 million;

• Funds received from CFH and other government funding of NZ$190 million to NZ$200 million; and

• Debt maturing of about NZ$677 million;

• Capital expenditure of around NZ$700 million; and

• Dividend of 24 cents per share with a dividend reinvestment plan.

• Undrawn bank facilities of about NZ$550 million.

Debt maturities

As of June 30, 2019 (mil. NZ$):

• Current portion of long-term debt: 677

• Debt due in second year: 400

• Debt due in third year: 0

• Debt due in fourth year: 0

• Debt due in fifth year: 784.5

• Thereafter: 500

Total debt: 2,361.5

Covenant Analysis

We expect Chorus to maintain sufficient headroom against its covenants, which include net debt to EBITDA of less than 4.75x in its syndicated bank facilities.

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Environmental, Social, And Governance

We view regulatory and social risks as key to our analysis of Chorus' environmental, social, and governance (ESG) factors.

Chorus has an important telecommunications service obligation (TSO), established through an agreement under the Telecommunications Act between the Crown and a TSO provider. Under the TSO, Chorus must maintain certain coverage and service on the copper network in New Zealand.

Chorus' supply chain carries risks and requires the company to monitor and manage different parts of the supply chain. In April 2019, Chorus released an independent review, after breaches of employment law were identified among a number of small businesses subcontracted by two of Chorus' service companies. While there were no allegations that implicated Chorus directly, the Labour Inspectorate identified allegations of poor treatment of migrant workers among Chorus' subcontractors' workforce. Chorus has put a number of structural improvements in place and is working with service companies to create a fairer supply chain, including introducing appropriate safeguards. Following an audit of all of Chorus' subcontacting companies, 38 subcontractors have ceased work on Chorus' network.

We view environmental exposure as not a material ratings driver. Chorus is addressing the issue through its greenhouse gas emission and e-waste management programs.

We assess Chorus' management and governance as prudent, given our assessment of the company's operating strategy and corporate governance architecture.

Issue Ratings - Subordination Risk Analysis

Capital structure

As of June 30, 2019, Chorus' capital structure consisted of a NZ$550 million undrawn revolving credit facility, NZ$1,462 million medium-term notes, NZ$900 million New Zealand domestic bonds, and debt securities from CFH, which we treat as debt.

Analytical conclusions

We rate Chorus' debt at 'BBB', in line with the issuer credit rating, given that no significant elements of subordination risk are present in the capital structure.

We treat the equity securities as 100% equity given that they are subordinated to all creditors of Chorus. Dividends are optional, mandatorily deferrable, and will not be paid initially.

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Reconciliation

Table 3

Reconciliation Of Chorus Ltd. Reported Amounts With S&P Global Ratings' Adjusted Amounts (Mil. NZ$)

--Fiscal year ended Jun. 30, 2019--

Chorus Ltd. reported amounts

					S&P Global
			Operating	Interest	Ratings' adjusted	Cash flow from	Capital
	Debt	EBITDA	income	expense	EBITDA	operations	expenditure
Reported	2,447.0	636.0	243.0	172.0	636.3	496.0	810.0
S&P Global Ratings'	adjustments
Cash taxes paid	--	--	--	--	(3.0)	--	--
Cash taxes paid: Other	--	--	--	--	--	--	--
Cash interest paid	--	--	--	--	(129.0)	--	--
Reported lease	254.0	--	--	--	--	--	--
liabilities
Accessible cash and	(273.0)	--	--	--	--	--	--
liquid investments
Capitalized interest	--	--	--	4.0	(4.0)	(4.0)	(4.0)
Share-based	--	0.3	--	--	--	--	--
compensation expense
Nonoperating income	--	--	10.0	--	--	--	--
(expense)
Debt: Foreign	125.0	--	--	--	--	--	--
currency hedges
Total adjustments	106.0	0.3	10.0	4.0	(136.0)	(4.0)	(4.0)
S&P Global Ratings'	adjusted amounts
				Interest	Funds from	Cash flow from	Capital
	Debt	EBITDA	EBIT	expense	operations	operations	expenditure
Adjusted	2,553.0	636.3	253.0	176.0	500.3	492.0	806.0

Ratings Score Snapshot

Issuer Credit Rating

BBB/Stable/--

Business risk: Strong

• Country risk: Low

• Industry risk: Intermediate

• Competitive position: Strong

Financial risk: Significant

• Cash flow/leverage: Significant

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Anchor: bbb

Modifiers

• Diversification/portfolio effect: Neutral (no impact)

• Capital structure: Neutral (no impact)

• Financial policy: Neutral (no impact)

• Liquidity: Adequate (no impact)

• Management and governance: Satisfactory (no impact)

• Comparable rating analysis: Neutral (no impact)

Stand-alone credit profile : bbb

Related Criteria

• General Criteria: Hybrid Capital: Methodology And Assumptions, July 1, 2019

• General Criteria: Group Rating Methodology, July 1, 2019

• Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019

• Criteria | Corporates | General: Reflecting Subordination Risk In Corporate Issue Ratings, March 28, 2018

• General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017

• Criteria | Corporates | General: Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014

• Criteria | Corporates | Industrials: Key Credit Factors For The Telecommunications And Cable Industry, June 22, 2014

• Criteria | Corporates | General: Corporate Methodology, Nov. 19, 2013

• General Criteria: Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013

• General Criteria: Methodology: Industry Risk, Nov. 19, 2013

• General Criteria: Methodology: Management And Governance Credit Factors For Corporate Entities, Nov. 13, 2012

• General Criteria: Use Of CreditWatch And Outlooks, Sept. 14, 2009

S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).

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Business And Financial Risk Matrix

Business And Financial Risk Matrix	Business And Financial Risk Matrix	Business And Financial Risk Matrix	Business And Financial Risk Matrix	Business And Financial Risk Matrix	Business And Financial Risk Matrix	Business And Financial Risk Matrix
Business Risk Profile	Financial Risk Profile
	Minimal	Modest	Intermediate	Significant	Aggressive	Highly leveraged
Excellent	aaa/aa+	aa	a+/a	a-	bbb	bbb-/bb+
Strong	aa/aa-	a+/a	a-/bbb+	bbb	bb+	bb
Satisfactory	a/a-	bbb+	bbb/bbb-	bbb-/bb+	bb	b+
Fair	bbb/bbb-	bbb-	bb+	bb	bb-	b
Weak	bb+	bb+	bb	bb-	b+	b/b-
Vulnerable	bb-	bb-	bb-/b+	b+	b	b-

Ratings Detail (As Of November 19, 2019)*
Chorus Ltd.
Issuer Credit Rating	BBB/Stable/--
Senior Unsecured	BBB
Issuer Credit Ratings History
03-Dec-2014	BBB/Stable/--
22-May-2014	BBB/Negative/--
05-Nov-2013	BBB/Watch Neg/--

*Unless otherwise noted, all ratings in this report are global scale ratings. S&P Global Ratings’ credit ratings on the global scale are comparable across countries. S&P Global Ratings’ credit ratings on a national scale are relative to obligors or obligations within that specific country. Issue and debt ratings could include debt guaranteed by another entity, and rated debt that an entity guarantees.

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