Moody's Global Credit Research

...Moody's recently surveyed rated higher education borrowers to assess the impact that the recent economic crisis may have on net tuition revenue and student demand for FY ####. Based on survey results, Moody's anticipates new stress on revenue for a significant minority of private colleges and universities, which could depress future operating performance. Nearly ##% of private institution respondents are projecting a decline in net tuition and fee revenue in FY ####, compared with an average of less than ##% that recorded declines in recent years. These results indicate rising credit pressure and new management challenges for institutions with fewer financial resources and lesser ability to withstand a drop in revenue. Regionally, we expect relatively more stress to occur among private institutions in the Mid-Atlantic and Midwest regions, the least among those in the South and West, and a mixed result for colleges and universities in New York and New England. Public universities, as a whole,...

...The pace of improvement in the liquidity of high-yield, non-financial corporate issuers accelerated in October. The magnitude of the seventh consecutive monthly reduction in Moody's Liquidity-Stress Index suggested that a significant decline in the default rate could be imminent. The percentage of lowest-ranked companies fell to ##.#% for October, down from ##.#% in September ####, marking the MLSI's lowest point since September ####, when Lehman Brothers' bankruptcy dealt a knockout blow to credit markets already dealing with the recession. Total SGL upgrades for the month outnumbered downgrades ## to #--the most lopsided improvement since February ####, and one of the best showings since we began our SGL ratings in ####. An unusually large wave of ## additions reflected a pick-up in first-time issuers rated by Moody's, which, along with four withdrawals, resulted in an increase in our total roster of SGL companies to ### for October, up from ### in September. Our tally of SGL-# issuers--the...

...Moody's assigns a bank financial strength rating (BFSR) of C- to Banco Espírito Santo S.A. (BES), which translates into a Baseline Credit Assessment (BCA) of Baa#. The BFSR is supported by BES's constantly strengthening position in its domestic market, diversified franchise, strong track record in the corporate segment, increasing geographic diversification and overall good financial profile, including adequate profitability, a sound stream of non-interest income, continuously improving efficiency indicators and strong capitalisation levels, after the recent rights issue. The rating also reflects the bank's appetite for market risk and the volatility of its earnings as result of its capital markets activity and the challenges of its international operations ­ in particular its exposure to Spain and to less mature markets. Other elements constraining BES's BFSR are its high borrower concentration levels and the ongoing deterioration in its asset quality indicators....

...The medical products and device sector depends on product innovation to bolster demand, create competitive advantages and slow price erosion. The sector faces new challenges that could hamper its ability to bring new products to market. The U.S. Food and Drug Administration's ###(k) process may become tougher, while the focus on post-market safety studies has increased. Healthcare reform initiatives such as comparative effectiveness studies and a possible sector fee could raise product development risk or constrain margins within the sector. Regulatory constraints and healthcare reform measures may force high- tech companies to be more vigilant about R&D spending, while pressuring lower-tech companies that are ramping up their spending to support top-line growth. Obstacles to new product development could lead to more acquisition activity in order to help companies supplement their organic growth....

...The performance of a securitization transaction depends not only on the creditworthiness of the underlying pool of obligors (collateral risk) but is also closely dependent on the effective performance by various transaction parties such as servicers, calculation agents, trustees, and cash managers (operational risk). Operational risk has received substantial attention recently as several transactions (some with well performing collateral) have experienced a substantial weakening of credit quality attributable primarily to non-performance of a securitization party. Examples include: On October ##, ####, Moody's placed on watch for possible downgrade all classes of notes issued by four issuers of securitization transactions serviced by DSB Bank N.V. ("DSB") in the Netherlands. The rating action was triggered by the implementation of emergency regulations in relation to the insolvent DSB by the Dutch Central Bank on ##th October ####. Considerations of the impact of operational risks arising...

...Telefónica SA (Baa#, positive) is one of the world´s leading integrated telecoms with presence in Europe, Africa and Latin America. Telefónica has one of the most international profiles in the sector with more than ##% of its business outside its home market and a reference point in the Spanish and Portuguese speaking markets. Telefónica is present in ## countries with more than ### million customers worldwide, as of June ####. The company ranks fifth worldwide in terms of accesses, behind China Mobile, Vodafone and China Unicom. In Latin America, Telefónica provides services to more than ### million customers, as of the end of June ####. It is the leading operator in Brazil, Argentina, Chile and Peru and has substantial operations in Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama, Uruguay and Venezuela. In addition to its historic presence in Latin America, Telefónica also has a strong footprint in the UK, Germany, Ireland and the Czech Republic. During the past few...

...Industry-in-Focus: Healthcare Has Been a Safe Haven for CLOs, but Proposed Reforms Will Test Industry Issuers...

CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S (MIS) CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT...

CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S (MIS) CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT...

Footnotes - General Information # Date format throughout report is DD/MM/YYYY. Footnotes - Rating Opinion and General Commentary Footnotes - Capital Structure # Residual tranches are not considered for any of the total amount or total...

CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S (MIS) CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT...

...Footnotes - General Information # Date format throughout report is DD/MM/YYYY. Footnotes - Rating Opinion and General Commentary # OC is the Sum of the non rated Class C amount issued by Alliance Auto Loans - Italy Srl (not subscribed by Cars Alliance Funding Plc) and the subordinated amount of a portion of the Deferred Component (Investors DC), which create the Credit Enhancement for Class A and Class B. Footnotes - Capital Structure Footnotes - Portfolio and Performance Data # CPR (Constant Prepayment Rate) Moody's CPR calculation = #-(#-(Current Period Unscheduled Principal Payments divided by Current Period Outstanding Pool Balance plus Unscheduled Principal Payments))^[reporting frequency] where reporting frequency equals (monthly reporting=##, quarterly reporting=#, semi-annual=#, annual=#). # TRR (Total Redemption Rate) Moody's TRR calculation = #-(#-(Current Period Total Principal Payments divided by Current Period Outstanding Pool Balance plus Total Principal Payments))^[reporting...

CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S (MIS) CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT...

...The Aa#.za national scale issuer rating of Ekurhuleni Metropolitan Municipality is underpinned by the relatively large economic base, its moderate but growing debt levels and traditionally prudent financial management approach. However, the rating also considers the fiscal challenges arising from declining revenue collection rates and the municipality's high expenditure requirements, and their impact on the city's financial performance and liquidity position....

...Moody's has maintained its negative outlook for the U.S. healthcare insurance sector as the uncertain direction of healthcare reform and a sluggish economy continue to pressure medical trend and membership growth. As a result, our expectation is for continued earnings volatility, declining membership, and an unsettled landscape for developing future strategies. The negative sector outlook represents our view of credit conditions facing health insurers over the next ## to ## months; it provides a framework against which to consider issuer-specific ratings and research. #. Healthcare Reform ­ As healthcare reform makes its way through Congress, a number of key issues that are likely to have a negative impact for healthcare insurers remain in one or more versions of the proposed legislation. These include specific provisions such as the `public option', reductions in Medicare Advantage reimbursements, and an annual $# billion assessment on the sector. In addition, a guaranteed issue requirement...

...Headquartered in London, UK, Diageo plc (Diageo, A# issuer rating, stable outlook) is the world's largest manufacturer and distributor of spirits, wine and beer with gross revenues of GBP##.# billion in the financial year ended ## June #### (FY####). It was formed from the merger of Grand Metropolitan plc and Guinness plc that became effective in December ####. Over time, Diageo's strategy has increasingly focused on the premium end of its portfolio of alcoholic beverage brands which include leading names such as Smirnoff vodka, Guinness stout, Johnnie Walker and J&B scotch whiskies and Baileys. In FY####, total volumes sold reached ###.# million equivalent units...

...Banks' relatively large concentrations of commercial real estate assets in Central and Eastern Europe (CEE) present them with particular challenges amid the current financial turmoil, despite some signs of an improvement in conditions in the region. To survive the turbulence of a restabilising economy, banks need to revisit the way they assess, measure and manage the credit risk of their current and potential exposures to commercial real estate in the CEE region, Moody's Analytics Risk Management Services says in a new report. "Commercial real estate investment volumes in CEE have fallen dramatically this year for a number of reasons, including increased investor interest in more transparent markets that display lower macroeconomic risks. However, there are early signs that, following the IMF bailout in the region, conditions are starting to ease," explains Valeriu Bajenaru, Engagement Manager at Moody's Analytics Risk Management Services and author of the report. Banks, in particular,...

...The strong credit quality of the collateral, which consists of seasoned retail installment sale contracts and retail installment loans secured primarily by agricultural equipment, both new and used;...

...PDL - Interest deferral: Interest on Class C is deferred when PDL exceeds the sum of the outstanding amount of ##% Series C and ###% of Series D. PDL - Interest deferral: Interest on Class D is deferred when PDL exceeds the sum of the outstanding amount of ##% Series D. Reserve Fund - Reserve Fund - Stop Release: Amortisation will cease when the Reserve Fund is not at its required balance. Delinquencies - Switch to pro rata: Amortisation of Class B is switched to pro rata with the Class A notes when they represent #.##% of the outstanding balance under Classes A, B, C and D. Principal - Switch to pro rata: Amortisation of Class C is switched to pro rata with the Class A and B notes when they represent #.##% of the outstanding balance under Classes A, B, C and D. Principal - Switch to pro rata: Amortisation of Class D is switched to pro rata with the Class A, B and C notes when they represent #.##% of the outstanding balance under Classes A, B, C and D....

...% Partially Supported: ###.#% Website % Fully supported: #.#% www.moodys.com Monoline Supported: #.#%...

...% of Current % of Current Amount at Pool at Loan Current Origination Number of Loan Name Closing Closing Amount Pool Date...

...% of Current % of Current Amount at Pool at Loan Current Origination Number of Loan Name Closing Closing Amount Pool Date...

...Overview Legal Framework Date of Initial Rating Assignment : September #### Does a specific Covered Bonds Law apply for this programme : Yes Total outstanding liabilities : EUR ##,###,###,### Total Assets in the Cover Pool : EUR ##,###,###,### Country in which Collateral is based : Germany Issuer Name : Country in which issuer is based : Germany Group / Parent Name : Main Collateral Type (>##%) : Public Sector Timely Payment Ratings Refinancing period for principal payments of # months or greater: No Aa# / Stable Liquidity reserve to support timely payments on all issuances : Yes* Group / Parent Senior Unsecured rating : n/d Timely Payment Indicator ("TPI") (note #) : High Covered Bonds Rating : Aaa Maximum Leeway given TPI, Issuer Rating and CB Rating : # notch(es)...

Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk.

...Cover Pool (in billion) Cover Assets Covered Bonds (in billion) Rating ##.### Residential and commercial mortgage loans #.### Aaa...

...% of Current % of Current Amount at Pool at Loan Current Origination Number of Loan Name Closing Closing Amount Pool Date...

CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S (MIS) CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT...

...Footnotes - Trigger Description Delinquencies - Reserve Fund - Stop Release: If loans more than ## days in arrears exceed #%. Defaults - Cumulative - Interest deferral: For Series B, when the accumulated amount of written-off loans is higher than #% of the initial amount of the pool. Defaults - Cumulative - Interest deferral: For Series C, when the accumulated amount of written-off loans is higher than #% of the initial amount of the pool. Defaults - Cumulative - Early Amortisation: Earky amortisation occurs when, amongst others, write-off divided by the original portfolio exceed the relevant trigger level. Delinquencies - Early Amortisation: Early amortisation ocurrs when, amongst others, delinquencies exceed #.##%. . Other - Early Amortisation: When during two consecutive payment dates, the aggregate balance of outstanding loans is less than ##% of the outstanding balance of notes. Defaults - Cumulative - Early Amortisation: Early amortisation occurs when, amongst others, the outstanding...

...Contacts Virginie Marraud des Grott, ##-#-####-####, Virginie.MarrauddesGrottes@moodys.com Sebastian Hoepfner, ####-####-####, Sebastian.Hoepfner@moodys.com Olimpia da Silva, ####-####-####, Olimpia.DaSilva@moodys.com Client Service Desk London: ####-####-####, csdlondon@moodys.com Monitoring Monitor.ABS@moodys.com...

...Appendix #: Large Multi-Borrower Transactions with Loans Subject to an Event of Default and/or in Special Servicing as of end-Q# ####...

...Accounting limitations make it difficult to assess how the worst economic crisis since the Great Depression has affected the financial health of Europe's largest non-financial companies. Our analysis of ## half-year results announcements covering eight different industries reveals: Carnage in the income statement. Compared with the first half of ####, ## billion (##%) was wiped off bottom-line profit as computed under GAAP....

## #### ## ­ ###### ###### Asia-Pacific Telecommunications Sector Stable outlook but negative pressures continue Laura Acres Ian Lewis Ivan Palacios Sean Lynch Takashi Usui Paul Ulrich Wing Chan © #### (Moody's Investors Service, Inc.)...

## #### ## ­ ###### ###### Asia-Pacific Telecommunications Sector Stable outlook but negative pressures continue Laura Acres Ian Lewis Ivan Palacios Sean Lynch Takashi Usui Paul Ulrich Wing Chan © #### Moody's Investors Service,...

...Dole Food Co.'s initial public offering officially closed last Wednesday, raising USD### million that the company will predominantly use to repay debt. As part of the IPO, the producer of fruit and vegetables also simplified its corporate structure to remove the potential for a cross-default. These credit-positive moves led us to change our outlook for Dole's long-term B# debt rating to positive from stable on Thursday. Debt repayments tied to the stock sale will bring down Dole's leverage, though it still remains high. We estimate that debt to EBITDA will fall to around #.#x by year- end--once the IPO proceeds, as well as asset sales and cash flows, have been applied to reduce debt--from #.#x in June and #.#x at the end of fiscal ####. The repayments also leave Dole with only USD## million in debt, maturing through March ####, eliminating short-term refinancing risk. Changes to the corporate structure also improve Dole's credit quality by eliminating holding-company debt and removing the...

...November #### Issuer Comment Moody's Global Corporate Finance ­ JAL's Troubles Raise Prospect of a Japanese Policy Shift...

...November #### Issuer Comment Moody's Global Corporate Finance ­ Weighing the Impact of Japan's Aviation Restructuring on Kansai Airport...

Global Credit Research Credit Opinion # NOV #### Credit Opinion: Ancora (OAHS) Pty Limited Ancora (OAHS) Pty Limited Sydney, New South Wales, Australia Ratings Category Moody's Rating Outlook Negative Bkd Senior Secured -Dom Curr *Aa#...

...Moody's expects Chinese commercial banks to increase investment in life insurers in view of the strong growth potential in the Chinese insurance sector, popularity of bancassurance and the benefit of diversifying their revenue sources. Currently, banks are more interested in investing in life insurers than non-life insurers. The entry of banks into the insurance industry will have little immediate impact on the insurance industry's credit fundamentals, as in the near-term, large-scale investments by banks are not expected. Moreover, the positions of the top-tier insurers will not be immediately threatened and they will continue to dominate the sector for the medium term. This is based on their large competitive gap over the rest of the market coupled with regulators' cautious approach to allowing banks to invest in the sector. However, Moody's anticipates that the business and financial profiles of those insurers with banks as majority shareholders would improve, since banks will have greater...

...U.S. tax credits to home buyers: robbing Peter to pay Paul? page #. Dole's IPO bears fruit by paring down debt page #. JAL's troubles raise prospect of a Japanese policy shift page #. Weighing the impact of Japan's aviation restructuring on Kansai Airport page #....

...November #### Issuer Comment Moody's Sovereign - U.S. Treasury's Intention to Lengthen Debt Maturity Reduces Vulnerability to Interest Rate Shocks...

Global Credit Research Rating Action ## OCT #### Rating Action: Corsair (Jersey) No.# Series ## Moody's assigns (P)A# to Corsair (Jersey) No.# repackaged notes JPY # billion of debt securities affected Tokyo, October ##, #### -- Moody's...

Global Credit Research Rating Update ## OCT #### Rating Update: Metropolitan Domestic Water Improv. Dist., AZ MOODY'S CORRECTS THE INSURED RATING OF THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT OF PIMA COUNTY (AZ), WATER REVENUE...