Hide Notes 

Slide 1: STANDARD &POOR’S Fixed Income Ratings Definitions Fixed Income >» Public Finance (US) S&P Long-Term Issuer Credit Ratings Publication date: May 17, 2002 00:00 EOT S&P Long-Term Issuer Credit Ratings Long-Term Issuer Credit Ratings AAA An obligor rated 'AAA' has EXTREMELY STRONG capacity to meet its financial commitments. 'AAA' is the t Issuer Credit Rating assigned by Standard & Poor's. AA An obligor rated 'AA' has VERY STRONG capacity to meet its financial commitments. It differs from the highest obligors only in small degree. An obligor rated 'A' has STRONG capacity to meet its financial commitments but is somewhat more susceptible adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories. BBB An obligor rated 'BBB' has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. Obligors rated 'BB', 'B', 'CCC', and 'CC' are regarded as having significant speculative characteristics. 'BB' involve the least degree of speculation and 'CC' the highest. While such obligors will likely have some quality characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. BB An obligor rated 'BB' is LESS VULNERABLE in the near term than other lower-rated obligors. However, it faces ongoing uncertainties and exposure to adverse business, financial, or economic condions which could lead obligor's inadequate capacity to meet its financial commitments. B An obligor rated 'B' is MORE VULNERABLE the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments. B An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. CCC An obligor rated 'CCC' is CURRENTLY VULNERABLE, and is dependent upon favorable business, financial and economic conditions to meet its financial commitments. CC An obligor rated 'CC' is CURRENTLY HIGHLY-VULNERABLE.
Slide 2: Plus (+) or minus(-) The ratings from 'AA' to 'CCC' may be modified by the addition of a plus or minus sign to the relative standing within the major rating categories. A subordinated debt or preferred stock obligation rated 'C' is CURRENTLY HIGHLY VULNERABLE to nonpayment. The 'C' rating may be used to cover a situation where a bankruptcy petition has been filed or similar action taken and payments on this obligation are being continued. A 'C' also will be assigned to a preferred stock issue in arrears dividends or sinking fund payments, but that is currently paying. An obligor rated 'R' is under regulatory supervision owing to its financial condition. During the pendency regulatory supervision the regulators may have the power to favor one class of obligations over others or pay obligations and not others. Please see Standard & Poor's issue credit ratings for a more detailed description of the effects of regulatory supervision on specific issues or classes of obligations. SD and D An obligor rated 'SD' (Selective Default) or 'D' has failed to pay one or more of its financial obligations (re unrated) when it came due. A 'D' rating is assigned when Standard & Poor's believes that the default will be a c default and that the obligor will fail to pay all or substantially all of its obligations as they come due. An 'SD' n assigned when Standard & Poor's believes that the obligor has selectively defaulted on a specific issue or c obligations but it will continue to meet its payment obligations on other issues or classes of obligations in a manner. Please see Standard & Poor's issue credit ratings for a more detailed description of the effects of a def specific issues or classes of obligations. N.R. An issuer designated N.R. is not rated. Public Information Ratings Ratings with a 'pi' subscript are based on an analysis of an issuer's published financial information, as \ additional information in the public domain. They do not, however, reflect in-depth meetings with an L< management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. F with a 'pi' subscript are reviewed annually based on a new year's financial statements, but may be reviewed interim basis if a major event occurs that may affect the issuer's credit quality. Outlooks are not provided for ratings with a 'pi' subscript, nor are they subject to potential CreditWatch Ratings with a 'pi' subscript generally are not modified with '+' or'-' designations. However, such designations r assigned when the issuer's credit rating is constrained by sovereign risk or the credit quality of a parent comp affiliated group. Source: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.