Top Risks For The Global Insurance Industry - Could COVID-19's second wave shake up the sector? - S&P Global
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Top Risks For The Mario Chakar
Associate
Global Insurance Industry Insurance Ratings
Nov. 17, 2020
Could COVID-19’s second wave shake up the sector?
Contents
Key Takeaways 3
Risk Categories 5
Developed EMEA Key Risks 7
Developing EMEA Key Risks 13
Asia-Pacific Key Risks 19
North America Key Risks 25
Latin America Key Risks 31
Analytical Contacts 37
2
Key Takeaways
– The impact of COVID-19 on global insurance markets is largely felt through asset
risks, notably capital markets volatility, and weaker premium growth prospects.
– We expect most COVID-19-related losses (business interruption, event cancellation,
etc.) to be picked up by reinsurers, so primary insurers' technical performance is
unlikely to deteriorate materially.
– Strict lockdown measures helped maintain satisfactory performance, as motor and
medical claims had a positive impact on loss ratios.
– Developed markets, particularly life ones, are likely to shrink in real terms as a
result of the economic slowdown.
– Developing markets, through their riskier asset allocation, will likely experience more
declines in return on equity than developed markets.
– Ultralow interest rates mean that the most significant source of risk to insurers is
the performance of investments, especially life insurers with guaranteed back books.
3Insurance | Relative Resilience, Risks Remain
2020 Insurance Rating Actions In Context: For Insurance Capital,
Quantity And Quality Matter
– Insurance downgrades this year have
CreditWatch
Downgrade Outlook revision
placement
been almost exclusively linked to
sovereign rating changes.
– Outlook changes occurred for issuers
Global C&G with thinner capital buffers and
those most impacted by financial
Global Insurance market volatility.
– We expect insurance ratings to
EMEA continue to show resilience, but risks
remain from: investment portfolio
North America exposure, business lines most
acutely affected by the pandemic,
Asia-Pacific
wider pressures on investment
returns, low interest rate, and lower
Latin America
economic growth.
0 10 20 30 40 50
– Since second-quarter 2020, the
% of ratings
following sectors have carried
negative sector outlooks: U.S.,
Canada, Australian mortgage
insurance, global reinsurance, APAC
C&G--Corporates & Governments. EMEA--Europe, the Middle East, and Africa. life, and Latin America.
Source: S&P Global Ratings.
4Top Risks For The Global Insurance Sectors
Risk Category Description
Investment performance risk Capturing financial markets risks, including interest rates, mark to market, and asset quality.
Exposure to high-risk assets High-risk assets typically include equities (listed and unlisted), real estate, fixed-income investments
or deposits in institutions that are rated 'BB+' or lower, and unrated bonds and loans.
Country risk Risk factor taking into account considerations such as macroeconomic risk, sovereign rating
limitations, geopolitical, and rule of law risks.
Intense competitive environment Whether the market is concentrated with a few players or contains a high number of smaller ones, an
intense competitive environment could lead to price wars and hurt profitability.
Muted market growth prospects The lack of potential for premium growth in a market, either because it is mature or due to adverse
macroeconomic conditions, with high inflation resulting in near-zero (or negative) real growth.
Weak technical results An industry where technical performance, typically measured by combined ratios (non-life) and return
on assets (life) is loss-making.
Exposure to natural catastrophes Markets with material exposure to climate risk, notably, earthquakes, hurricanes, and other natural
disasters.
Litigious legal system A sector where litigation often leads to lengthy court cases, increasing the tail of an insurer's
liabilities, and consequently, resulting in unpredictable claims settlements.
Government and regulatory policy Markets exposed to changes in government or regulatory policies, often resulting in material impacts
risks on insurers' business models and/or profitability.
Foreign exchange impact Reflects the impact foreign exchange risks could have on profitability.
Other Risk classification that does not fit any of the 10 categories described above.
5Key Risks
Developed EMEA Property/Casualty Insurance
German-speaking
–Austria
–Germany
–Switzerland
Nordic
–Denmark
–Finland
–Norway
–Sweden
Northern Europe
–Belgium
–France
–Ireland
–Netherlands
–U.K.
Southern Europe
–Italy
–Portugal
–Spain
Source: S&P Global Ratings.
7Developed EMEA P/C | Investment Performance Is
A Major Risk
Investment performance risk Intense competitive environment Exposure to high risk assets Exposure to natural catastrophes
Government and regulatory policy risks Country risk Litigious legal system Foreign exchange impact
Weak technical results Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– To a lesser extent than life insurers, the low interest rate environment will likely impact investment
yields for P/C insurers, and consequently ROE.
– Insurers (particularly Nordics) have increased investment leverage to enhance returns through
higher-risk assets, mainly equities.
– The intense competitive environment translates into weaker technical earnings, particularly on
motor and medical lines in the U.K. and Ireland.
– Changes in government and regulatory policies historically resulted in profit volatility, notably in the
U.K. and Ireland (for example, the discount rate in the U.K. used in settling bodily injury claims). The
countries' litigious legal system has also increased product risk, and consequently unpredictable
claims settlements.
– Exposure to natural catastrophes is mainly limited to flooding and weather events such as
hailstorms, windstorms, and torrential rain. Their impact has generally been manageable.
Source: S&P Global Ratings.
8Developed EMEA P/C | Performance Metrics
Capital Markets Volatility To Impact Nordic ROE,
Relatively Stable Combined Ratios
The Result of Insurers' Risky Asset Mix
German-speaking Nordic Northern Europe Southern Europe German-speaking Nordic Northern Europe Southern Europe
100.0% 16%
97.5%
12%
95.0%
8%
92.5%
4%
90.0%
87.5% 0%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
South Europe's Economic Performance Going Into
COVID-19 Gives It Solid Push For GWP Growth
German-speaking Nordic Northern Europe Southern Europe
4%
3%
2%
1%
0%
(1%)
2018 2019 2020f 2021f
f--Forecast. ROE—Return on equity. Source: S&P Global Ratings.
9Developed EMEA Life
German-speaking
–Austria
–Germany
–Switzerland
Nordic
–Denmark
–Finland
–Norway
–Sweden
Northern Europe
–Belgium
–France
–Netherlands
–U.K.
Southern Europe
–Italy
–Portugal
–Spain
Source: S&P Global Ratings.
10Developed EMEA Life | Low Interest Rate Risk Is
Pronounced
Investment performance risk Country risk Exposure to high risk assets Government and regulatory policy risks
Intense competitive environment Muted market growth prospects Exposure to natural catastrophes Foreign exchange impact
Weak technical results Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– We assess investment performance risk as a key driver of industry risks.
– The ultra low interest rate environment will continue to weigh on life insurers' profitability (ROA and
ROE), particularly those with guaranteed products. This is especially relevant for insurers in the
German-speaking and Nordic regions.
– In search of higher investment yields, some markets are exposed to the volatile equity and real
estate classes. These high-risk assets result in ROE volatility.
– The subdued macroeconomic environment weighs on growth prospects, where we expect real
premium growth to remain flat at best in 2020-2021.
– Despite competitive market dynamics, most markets are dominated by a few large players that
share the market's premiums and profits.
Source: S&P Global Ratings.
11Developed EMEA Life | Performance Metrics
Conservative Investment Portfolio Limits ROA Capital Markets Volatility To Impact Nordic ROE In
Volatility Outside The Nordic Region 2020
German-speaking Nordic Northern Europe Southern Europe German-speaking Nordic Northern Europe Southern Europe
2.5% 16%
2.0% 12%
1.5% 8%
1.0% 4%
0.5% 0%
0.0% (4%)
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Real Premium Growth To Remain Flat At Best
German-speaking Nordic Northern Europe Southern Europe
10%
5%
0%
(5%)
(10%)
2018 2019 2020f 2021f
f--Forecast. ROA--Return on assets. ROE--Return on equity. Source: S&P Global Ratings.
12Developing EMEA Property/Casualty
Group 1
–Bahrain
–Jordan
–Kuwait
–Qatar
–Saudi Arabia
–United Arab Emirates
Group 2
–Czech Republic
–Israel
–Poland
–Slovenia
Group 3
–Azerbaijan
–Kazakhstan
–Russia
–South Africa
–Turkey
Group 4
–Angola
–Kenya
–Morocco
Source: S&P Global Ratings.
13Developing EMEA P/C | Macroeconomic And
Geopolitical Risks Prevalent
Country risk Investment performance risk Intense competitive environment Muted market growth prospects
Foreign exchange impact Weak technical results Exposure to high-risk assets Government and regulatory policy risks
Exposure to natural catastrophes Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– Country risk, particularly sovereign rating caps and geopolitical risk, is pronounced for many of
EMEA’s developing sectors, notably in the Middle East and North Africa.
– Foreign exchange risk results currency devaluation in non-pegged regimes, which increases the
cost of claims for the dominant motor and medical lines. This is particularly the case in Turkey, South
Africa, and Angola.
– Low market growth prospects in the absence of new mandatory covers increases competitive
pressures, which often results in poor technical performance.
– Exposure to high-risk assets (equities and real estate) results in earnings volatility.
Source: S&P Global Ratings.
14Developing EMEA P/C | Performance Metrics
Combined Ratios Feel Little Impact From COVID- ROE Likely To Take A Hit From Equity Volatility,
19 As Russia/CIS Drives Deterioration In Group 3 Lower Interest Rates, And Lower Oil Prices
Group 1 Group 2 Group 3 Group 4 Group 1 Group 2 Group 3 Group 4
106% 30%
25%
102%
20%
98% 15%
10%
94%
5%
90% 0%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Real GWP Growth Materially Impacted in CEE By
Currency Devaluation Increases Claims Costs
The Economic Downturn, But Will Rebound
Group 1 Group 2 Group 3 Group 4 USD per AOA USD per TRY USD per ZAR USD per RUB
8% 40%
20%
4%
0%
0% (20%)
(40%)
(4%)
(60%)
(8%) (80%)
2018 2019 2020f 2021f Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20
AOA--Angolan kwanza. CEE--Central and Eastern European countries. f--Forecast. ROA--Return on assets. ROE--Return on equity. TRY--Turkish new lira. USD--U.S.
dollar. RUB--Russian ruble. ZAR--South African rand. Source: S&P Global Ratings.
15Developing EMEA Life
Source: S&P Global Ratings.
16Developing EMEA Life | Weak Macroeconomic
Conditions Impede Growth Potential
Country risk Investment performance risk Muted market growth prospects Government and regulatory policy risks Foreign exchange impact Litigious legal system Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– In EMEA's developing markets, insurance sectors have little in common, but country risks and
government and regulatory risks are more prevalent than in developed markets.
– Prolonged periods of weak economic conditions, muted growth prospects, together with low levels
of wealth, have led to increased lapse rates, particularly as policyholders find themselves with less
disposable income.
– The low interest rate environment and volatility in capital markets are factors weighing on
profitability.
– Litigation risk on certain unit-linked policies in Czech Republic and Poland.
Source: S&P Global Ratings.
17Developing EMEA Life | Performance Metrics
2020 ROA Supported By Bounce In Israel After A
ROE To Remain Relatively Unaffected
One-Off Reserve Strengthening in 2019
1.2%
15%
1.0%
14%
0.8%
13%
0.6%
12%
0.4%
0.2% 11%
0.0% 10%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Real Premium Growth Remains Albeit Below
Historic Levels
14%
12%
10%
8%
6%
4%
2%
0%
2018 2019 2020f 2021f
f--Forecast. ROA--Return on assets. ROE--Return on equity. Source: S&P Global Ratings.
18APAC Property/Casualty
Developed
–Australia
–Hong Kong
–Japan
–Korea
–New Zealand
–Singapore
Developing
–China
–Malaysia
–Taiwan
–Thailand
Source: S&P Global Ratings.
19APAC P/C | Fierce Competition Amid Low Growth
And Exposure To Natural Catastrophes
Intense competitive environment Muted market growth prospects Exposure to natural catastrophes Investment performance risk
Weak technical results Exposure to high-risk assets Government and regulatory policy risks
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– Mature and saturated markets, with some segments producing reasonable returns, resulting in
increased competition.
– Exposure to natural catastrophes, notably tsunamis, earthquakes (Japan and New Zealand), and
flooding (Taiwan and Thailand). We also note an increase in frequency of cat events, such as in
Australia and New Zealand.
– Excessive risk-taking in the investment portfolio, mainly through domestic and foreign equity
investments. This leads to earnings volatility.
– Rising compliance costs and government policy changes (Hong Kong and Malaysia) make the
operating environment uncertain.
Source: S&P Global Ratings.
20APAC P/C | Performance Metrics
Deterioration In ROE, Particularly In Developing
Combined Ratios To Remain Relatively Stable
Markets Unlikely To Bounce Back Materially
Developed Developing Developed Developing
102% 11%
10%
100% 9%
8%
7%
98%
6%
5%
96% 4%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
No Material Impact On Real Premium Growth In
Developing Markets As A Result Of The Pandemic
Group 1 Group 2
10%
8%
6%
4%
2%
0%
2018 2019 2020f 2021f
f--Forecast. ROA—Return on assets. ROE—Return on equity. Source: S&P Global Ratings.
21APAC Life
Developed
–Australia
–Hong Kong
–Japan
–Korea
–New Zealand
–Singapore
Developing
–China
–Malaysia
–Taiwan
–Thailand
Source: S&P Global Ratings.
22APAC Life | Low Interest Rates Are The Source Of
Weak Underwriting Profits
Investment performance risk Weak technical results Muted market growth prospects Intense competitive environment
Government and regulatory policy risks Exposure to high-risk assets Foreign exchange impact Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– The low interest rate environment and volatility in financial markets mean that investment returns
are unlikely to be a major offsetting factor to improve ROA and ROE.
– Legacy high-yield guaranteed policies and structural duration mismatch cause material ALM risk,
which leads to weak technical results.
– Life insurance technical results have been dampened by weaker-than-expected experience across
disability lines.
– The economic slowdown caused by COVID-19 means that premium growth will be subdued in 2020,
with developed markets likely to shrink materially in real terms.
– Increased regulatory scrutiny in relation to sales and distribution, notably in Australia and New
Zealand.
Source: S&P Global Ratings.
23APAC Life | Performance Metrics
Developing Markets' ROA Unlikely To Recover To Developing Markets' Riskier Assets to Generate
Pre-Pandemic Levels in 2021 Higher ROE Than Developed Markets
Developed Developing Developed Developing
1.1% 16%
1.0% 14%
12%
0.9%
10%
0.8%
8%
0.7%
6%
0.6% 4%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Developed Markets To Shrink While China
Continues To Drive Growth in Developing APAC
Developed Developing
15%
10%
5%
0%
(5%)
(10%)
2018 2019 2020f 2021f
f--Forecast. ROA—Return on assets. ROE—Return on equity. Source: S&P Global Ratings.
24North America Property/Casualty
Source: S&P Global Ratings.
25North America P/C | Catastrophe Risk And Litigious
Claims Increase Claims Severity
Exposure to natural catastrophes Investment performance risk Litigious legal system Muted market growth prospects
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– The weaker investment environment, namely due to low interest rates and volatile equity markets,
will continue to suppress investment performance.
– Macroeconomic pressures will continue to weigh on the market's growth prospects.
– The U.S.'s legal system is generally litigious, resulting in unpredictable claims settlements and
related reserve volatility arising from unanticipated spikes in claims severity or frequency trends
than in most other markets.
– Material exposure to natural perils, especially hurricanes, tornados, and wildfires, the latter
becoming more prevalent in recent years. These losses tend to be borne by insurers as exposures are
within retention levels.
Source: S&P Global Ratings.
26North America P/C | Performance Metrics
Net Combined Ratios Not Materially Impacted By
Some Dip In ROE From Financial Market Volatility
COVID-19
Canada U.S. Canada U.S.
101% 10%
100% 8%
99% 6%
98% 4%
97% 2%
0%
96%
2018 2019 2020f 2021f
2018 2019 2020f 2021f
Source: S&P Global Ratings. f--Forecast. Source: S&P Global Ratings. f--Forecast.
Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved. Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved.
Drop In Real Premium Growth, Particularly The
U.S., Before A Rebound In 2021
Canada U.S.
4%
2%
0%
(2%)
(4%)
(6%)
2018 2019 2020f 2021f
Source: S&P Global Ratings. f--Forecast.
Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved.
f--Forecast. ROA—Return on assets. ROE—Return on equity. Source: S&P Global Ratings.
27North America Life
Source: S&P Global Ratings.
28North America Life | Weak Macroeconomic
Conditions Amid Rising Counterparty Credit Risk
Investment performance risk Weak technical results Country risk
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– Ultralow interest rates, which we expect will remain for longer, coupled with guaranteed policies,
give rise to weak technical performance.
– Macroeconomic risk, namely weak economic growth and higher unemployment in the developed
U.S. and Canadian markets, make for a difficult operating environment.
– Financial market risk arising from increased credit risk in corporate bonds, together with significant
losses in equity markets.
Source: S&P Global Ratings.
29North America Life | Performance Metrics
Low Interest Rates Coupled With High Guarantees Equity Market Losses To Depress ROE In 2020
To Impact ROA Before A Considerable Rebound In 2021
Canada U.S. Canada U.S.
1.2% 11%
1.0% 10%
0.8% 9%
8%
0.6%
7%
0.4%
6%
0.2%
5%
0.0% 4%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Source: S&P Global Ratings. f--Forecast. Source: S&P Global Ratings. f--Forecast.
Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved. Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved.
Sharp Decline In Real Premium Growth In 2020 To
Recover In 2021
Canada U.S.
10%
5%
0%
(5%)
(10%)
2018 2019 2020f 2021f
Source: S&P Global Ratings. f--Forecast.
Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved.
f--Forecast. ROA—Return on assets. ROE—Return on equity. Source: S&P Global Ratings.
30Latin America Property/Casualty
Source: S&P Global Ratings.
31Latin America P/C | Macroeconomic And Political
Instability Hinder Growth Prospects
Country risk Muted market growth prospects Investment performance risk Weak technical results Forex impact
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– Weak technical results due to a high cost base and aggressive competition, with insurers relying on
investment returns to produce overall net profits.
– Exposure to currency devaluation, particularly on the largest lines of business (motor and medical).
– The economic downturn caused by COVID-19 will have an adverse effect on potential premium
growth for the sectors.
– A history of sovereign defaults, notably in Argentina, exposes insurers' credit quality. Unstable
political environments also pose a drag on insurance sectors.
Source: S&P Global Ratings.
32Latin America P/C | Performance Metrics
Some Deterioration In Combined Ratios, Partly Adverse Currency Movements And Lockdown
Reflecting Foreign Exchange Movements Measures To Impact ROE
102% 15%
101% 14%
100% 13%
99% 12%
98% 11%
97% 10%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Markets To Shrink In Real Terms In 2020 Before A
Currency Devaluation Increases Claims Costs
Strong Rebound In 2021
4% USD per ARS USD per BRL USD per COP USD per MXN
3%
20%
2%
1% 0%
0%
(20%)
(1%)
(2%) (40%)
(3%)
(60%)
(4%)
(5%) (80%)
2018 2019 2020f 2021f Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20
ARS--Argentine peso. BRL--Brazilian real. COP--Colombian peso. f--Forecast. MXN--Mexican peso. ROA--Return on assets. ROE--Return on equity. USD--U.S. dollar.
Source: S&P Global Ratings.
33Latin America Life
Source: S&P Global Ratings.
34Latin America Life | Weak Growth Potential Amid A
Difficult Macroeconomic Environment
Country risk Investment performance risk Muted market growth prospects Government and regulatory policy risks
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
– Difficult management of asset-liability mismatches for insurers carrying long-tail businesses such
as workers' compensation and annuities in Colombia.
– Unfavorable country risk, characterized by unstable political environments and an economic
slowdown attributed to COVID-19, and relatively high inflation.
– Lower disposable income for consumers means that life insurance sectors will likely remain
immature and underpenetrated.
Source: S&P Global Ratings.
35Latin America Life | Performance Metrics
ROA To Feel Impact Of Lower Investment Returns Interest Rates To Keep High, But Reduced ROE
And Higher Lapse Rates Levels In A High Inflationary Environment
3.0% 29%
28%
2.8%
27%
2.6% 26%
2.4% 25%
24%
2.2%
23%
2.0% 22%
1.8% 21%
2018 2019 2020f 2021f 2018 2019 2020f 2021f
Lockdown Measures To Have A Sizable Impact On
Real Premium Growth In 2020
12%
8%
4%
0%
(4%)
(8%)
2018 2019 2020f 2021f
Note: f--Forecast. ROA--Return on assets. ROE--Return on equity. Source: S&P Global Ratings.
36Analytical Contacts
Global Global
Mario Chakar Ali Karakuyu
London London
+44-20-7176-7070 +44-20-7176-7301
mario.chakar@spglobal.com ali.karakuyu@spglobal.com
Developed EMEA Developed EMEA
Volker Kudszus Mark D Nicholson
Frankfurt London
+49-69-3399-9192 +44-20-7176-7991
volker.kudszus@spglobal.com mark.nicholson@spglobal.com
Asia-Pacific North America
Craig Bennett John Iten
Melbourne Princeton
+61-3-9631-2197 +1-212-438-1757
craig.bennett@spglobal.com john.iten@spglobal.com
Latin America
Alfredo Calvo
Mexico City
+52-55-5081-4436
alfredo.calvo@spglobal.com
37Copyright © 2020 by Standard & Poor’s Financial Services LLC. All rights reserved.
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified,
reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial
Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors,
officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not
responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any
data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S
FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any
party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost
income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's
opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and
do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is
not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P
does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform
an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are
not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the
right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal,
or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain
business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain
nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its
opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.spcapitaliq.com (subscription)
and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at
www.standardandpoors.com/usratingsfees.
Australia: 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).
STANDARD & POOR'S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor's Financial Services LLC.
spglobal.com/ratings
38You can also read
