Group Rating Methodology Published
July 1, 2019
LONDON (S&P Global Ratings) July 1, 2019--S&P Global Ratings today published its global
framework for rating entities that are part of a group, titled "Group Rating Methodology." Thecriteria take effect immediately, except in those markets that require prior notification to and/orregistration by the local regulator, where the criteria will become effective when so notified by S&P
Global Ratings and/or registered by the regulator.
The criteria follow our request for comment ("Request For Comment: Group Rating Methodology,"
published Dec. 12, 2018). For a summary of the changes between the request for comment andthe final criteria, and the rationale behind those changes, see "RFC Process Summary: Group
Rating Methodology."
These criteria apply to corporate, financial institution, insurance, and international public financeentities that we consider part of a group and U.S. public finance entities that we consider part ofan obligated group. For these entities, we believe that their ownership, control, influence, orsupport by or to another entity could have a material bearing on their credit quality. Examples ofentities that are outside the scope of these criteria include project finance and corporate
securitizations.
These criteria articulate the steps in determining an issuer credit rating (ICR) on group members
and their holding companies. This involves assessing the group credit profile (GCP; i.e. the group's
overall creditworthiness), the stand-alone credit profiles (SACP) of group members, and the statusof an entity relative to other group entities. The criteria also describe how we assess the potentialfor support (or negative intervention) from group entities, or from other external sources such as agovernment.

ANALYTICAL CONTACTS
Craig A Bennett
Melbourne(61) 3-9631-2197
craig.bennett@spglobal.com
HongTaik Chung, CFA
Hong Kong(852) 2533 3597
hongtaik.chung@spglobal.com
Dan Picciotto, CFA
New York(1) 212-438-7894
dan.picciotto@spglobal.com
Ivana L Recalde
Buenos Aires(54) 114-891-2127
ivana.recalde@spglobal.com
CRITERIA CONTACTS
Mark Button
LondonWe are revising our group rating methodology to provide greater clarity and transparency, andenhance cross-sector consistency. While the underlying fundamentals remain the same, the newcriteria also increases scope for analytical adjustments.

(44) 20-7176-7045

The potential rating impact of the new criteria on issuer credit ratings differs by sector.

LondonThe criteria could lead to modest credit rating actions on no more than about 2% of ratings in theinsurance sector, with more upgrades than downgrades. The potential rating actions are mostly
due to changes relating to rating issuers above the sovereign rating. Other, mostly single-notchrating actions, will mostly result from greater scope for analytical adjustments in the criteria.

mark.button@spglobal.com
Peter Kernan(44) 20-7176-3618
peter.kernan@spglobal.com
See complete contact list at end of article.

The criteria could lead to modest issuer credit rating actions in the corporate and infrastructure
sector, where we anticipate rating actions for about 1% of the rated universe. We expect a more
pronounced rating impact in the infrastructure sector in particular, where we anticipate rating
actions for up to about 4% of those entities. The clear majority of anticipated rating actions in thecorporate and infrastructure sectors will be limited to an upgrade of one notch and primarily in theregulated utilities sector, where we have changed how we assess insulation that is sufficient for apotential ICR that is one notch higher than the GCP.

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July 1, 20191

Group Rating Methodology PublishedThe criteria could lead to extremely modest (under 1%), and mostly positive rating actions in thefinancial institutions sector. Where rating actions will occur, we anticipate that they will be mostly
limited to upgrades and downgrades of one notch as a result of greater scope for analyticaladjustments in the criteria.
We do not expect the criteria to affect the ratings on U.S. public finance and international publicfinance entities.
We also published today "Guidance: Group Rating Methodology," which provides additional
information and guidance related to the application of our group rating methodology.
This report does not constitute a rating action.

The report is available to subscribers of RatingsDirect at www.capitaliq.com. If you are not a RatingsDirect
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail toresearch_request@spglobal.com. Ratings information can also be found on S&P Global Ratings' public website byusing the Ratings search box located in the left column at www.standardandpoors.com. Alternatively, call one of thefollowing S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44)20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7)495-783-4009.

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Group Rating Methodology PublishedContact List
ANALYTICAL CONTACTSANALYTICAL CONTACTSANALYTICAL CONTACTS

Craig A Bennett

HongTaik Chung, CFA

Dan Picciotto, CFA

Melbourne

Hong Kong

New York(61) 3-9631-2197(852) 2533 3597

(1) 212-438-7894

craig.bennett@spglobal.com

hongtaik.chung@spglobal.com

dan.picciotto@spglobal.com

ANALYTICAL CONTACTS

CRITERIA CONTACTS

CRITERIA CONTACTS

Ivana L Recalde

Mark ButtonPeter Kernan

Buenos Aires

LondonLondon(54) 114-891-2127(44) 20-7176-7045(44) 20-7176-3618ivana.recalde@spglobal.com

mark.button@spglobal.com

peter.kernan@spglobal.com

CRITERIA CONTACTS

CRITERIA CONTACTS

MEDIA CONTACT

Nik Khakee

Yuval Torbati

Jeff Sexton

New York

RAMAT-GAN

New York(1) 212-438-2473(972) 3-753-9714(1) 212-438-3448

nik.khakee@spglobal.com

yuval.torbati@spglobal.com

jeff.sexton@spglobal.com

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July 1, 20193

Group Rating Methodology Published

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