SOVEREIGN AND SUPRANATIONAL

CREDIT OPINION
17 January 2023

Government of Iceland – A2 stable
Regular update

UpdateSummary
The credit profile of Iceland is underpinned by its wealthy and flexible economy withfavourable demographics that support its long-term growth prospects. The country has
built significant buffers which help offset its vulnerability to shocks given its small size andconcentration in a limited number of sectors. The pandemic-induced fiscal deterioration is
being gradually reversed helped by strong economic growth.
Exhibit 1

Iceland's credit profile is determined by four factors

Contacts
Kathrin+44.20.7772.1383
Muehlbronner
Senior Vice President
kathrin.muehlbronner@moodys.com
Lenaic Couderc+44.20.7772.1799
Associate Analyst
lenaic.couderc@moodys.com

Economicstrength

Institutions andgovernance strength

Fiscalstrength

Susceptibility
to event risk

baa1

aa2

baa1

a

Economic resiliency
a1

Dietmar Hornung+49.69.70730.790
Associate Managing Director
dietmar.hornung@moodys.com

Government financial strengtha1Marie Diron+44.20.7772.1968
MD-Sovereign Risk
marie.diron@moodys.com
CLIENT SERVICES

Scorecard-indicated outcome
Aa3 - A2

Source: Moody's Investors Service

Americas1-212-553-1653

Asia Pacific852-3551-3077

Japan

81-3-5408-4100» Very high wealth levels and labour market flexibility provide buffers to deal with shocks;

EMEA

44-20-7772-5454» Well-funded pension system, long working lives and favourable demographics;

Credit strengths» Very large foreign-currency reserves and net external creditor position.

Credit challenges» Volatile growth performance due to sectoral concentration and small currency area;» Rebuilding fiscal buffers after large pandemic-driven increase in public debt.

SOVEREIGN AND SUPRANATIONAL

MOODY'S INVESTORS SERVICE

Rating outlook
The stable outlook reflects our view that downside risks stemming from the economy's small size and high sector concentration are
mitigated by a robust external position as well as declining private sector indebtedness and a strong banking sector. The economy has
recovered strongly from the pandemic shock and is relatively unaffected by the economic consequences of the invasion of Ukraine
given its low reliance on imported energy. We expect the fiscal position to continue to improve in the coming years, helping to reverse
the deterioration induced by the pandemic.

Factors that could lead to an upgrade
The outlook on Iceland’s rating could move to positive and the rating could eventually be upgraded in case of faster-than-expected
progress in restoring the government's fiscal buffers. Moreover, increased diversification which would lead to a less volatile economic
performance would be positive for the rating.

Factors that could lead to a downgrade
Conversely, the outlook and subsequently the rating could come under downward pressure if the authorities deviated significantly fromtheir current medium-term fiscal consolidation plans that target a stabilisation of the public debt ratio by the middle of the decade,resulting in a material increase in the public debt ratio.
An economic shock which would lead to a large and permanent damage to the important tourism industry, or to substantial capitaloutflows, weakening Iceland’s external position and threatening financial stability, would also be credit negative, although the latter is
not a likely scenario.

Key indicators
Iceland

2017

2018

2019

2020

2021

2022E

2023F

2024F

Real GDP (% change)

4.2

4.9

2.4

-6.8

4.4

5.5

2.5

2.8

Inflation (CPI, % change, Dec/Dec)

1.9

3.7

2.0

3.6

5.1

9.6

4.9

2.5

Gen. gov. financial balance/GDP (%)[1]

1.0

0.9

-1.5

-8.9

-7.9

-4.4

-3.5

-3.0

Gen. gov. primary balance/GDP (%)[1]

6.7

5.8

2.8

-4.9

-4.5

0.6

0.7

0.7

Gen. gov. debt/GDP (%)[1]

71.6

63.1

66.0

77.2

75.3

67.8

66.4

65.5

Gen. gov. debt/revenues (%)[1]

157.9

141.1

157.9

184.1

182.3

161.8

162.4

168.0

Gen. gov. interest payment/revenues (%)[1]

12.6

11.0

10.3

9.5

8.3

11.9

10.3

9.5

Current account balance/GDP (%)

4.2

4.1

6.5

1.9

-1.7

-2.7

-1.3

1.0

Source: Moody's Investors Service

Detailed credit considerations
We assess Iceland's economic strength at “baa1” which balances the country's small size and associated history of economic boom
and bust episodes with very high wealth levels and strong competitiveness. Iceland's GDP per-capita is - at close to $60,000 in PPP
terms in 2021 - the 16th highest in our sovereign rating universe, having recovered the significant losses registered after the banking
crisis in 2008. Iceland's economy is highly competitive, as evidenced by its ranking at 16th globally in the World Competitiveness Index
in 2021, – standing out compared to close peers.
Growth is also volatile, reflecting limited diversification and relatively high openness, which increases the economy's vulnerability tosector-specific and external shocks. More than 70% of the country's export revenues come from three sectors: tourism (23% of total
in 2021), marine products (24% of total) and aluminum (23% of total). The economy continues to recover from the pandemic shock,which caused a deep contraction because of travel restrictions, but has been relatively less affected by the Russian invasion of Ukraine
given Iceland's low reliance on imported energy.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for themost updated credit rating action information and rating history.

2

17 January 2023

Government of Iceland – A2 stable: Regular update

MOODY'S INVESTORS SERVICE

SOVEREIGN AND SUPRANATIONAL

We assess Iceland's institutions and governance strength as “aa2”, reflecting the country's solid track record in restoring economic
and financial stability after the banking crisis. For example, the considerable strengthening in supervision and regulation of the banking
sector has helped to improve the resilience of the system. The authorities achieved a careful liberalisation of the capital account withminimal disruption. The monetary policy framework has gained credibility, following a major revamp, and the central bank has beensuccessful in reducing traditionally high and volatile inflation despite a recent spike driven by house prices.
Iceland scores strongly on the Worldwide Governance Indicators and our assessment also takes into account Iceland's high-quality
education system, an innovative business sector, an efficient and flexible labour market and well-developed infrastructure. Iceland
has a long tradition of broad cooperation and consensus on economic matters between the government, employer and employee
associations, which contributes positively to policy effectiveness.
We assess Iceland's fiscal strength as “baa1”, reflecting the government's strong track record in reducing its large budget deficits
and very high debt burden after the 2008 crisis. Between the peak in 2011 and 2018 general government debt more than halved,
and stood at 66% of GDP in 2019. We expect that general government debt will continue to decline thanks to strong GDP growth,
declining budget deficits and asset sales. The government holds significant equity stakes in two of the three largest domestic banks,and sale proceeds will likely continue to serve for debt reduction purposes. Iceland's multi-year fiscal framework with clear and credible
fiscal rules is on par with the best practices among highly rated sovereigns and is accepted across the political spectrum, giving highconfidence that debt will continue to be reduced in the coming years.
The reclassification of 24 public-sector corporations into the general government sector in 2020, in line with Eurostat statistical rules,
raised the government debt ratio by around 32 percentage points of GDP, in particular the debt of the HF-Fund (A2 stable), which
benefits from an explicit government guarantee and is in a government-directed winding-down process. The reclassification also
implies much smaller contingent liabilities, which we had previously taken into account qualitatively.
We assess Iceland's susceptibility to event risk as “a”, driven by our banking system and external vulnerability risk assessments. We
assess banking sector risk at “a”. The three large banks have solid levels of capitalisation and liquidity. The sharp rise in house prices has
been accompanied by an increase in household indebtedness, which could pose risks to financial stability but the authorities have put
in place a number of macroprudential measures to reduce such risks.
Similarly, we assess external vulnerability risks at “a”. This reflects Iceland's net external creditor position and very large foreigncurrency reserves, which can be used to help buffer external shocks. External surpluses have allowed the central bank to build
substantial foreign-currency reserves equivalent to around 20% of GDP or 27% of the country's total external debt as of the third
quarter of 2022, a large buffer to help limit exchange rate volatility and support the country's external position. The current accounthas slipped into a deficit since 2020 because of weaker tourism demand and large dividend payments of foreign-owned companies, but
is expected to return close to balance again next year.
Political event risk is low, and scored at “aa” given consistent policy in key areas important to safeguarding the government's credit
profile. Political consensus on the economic and fiscal direction for the country is strong.
We also assess government liquidity risk as “aa”. The previous marked reduction in government debt has reduced refinancing needs
while prudent liquidity management, including significant cash buffers, and a large domestic investor base are key mitigants to thegovernment's financing needs.

3

17 January 2023

Government of Iceland – A2 stable: Regular update

MOODY'S INVESTORS SERVICE

SOVEREIGN AND SUPRANATIONAL

ESG considerations
Iceland's ESG Credit Impact Score is Neutral-to-Low CIS-2
Exhibit 3

ESG Credit Impact Score

Source: Moody's Investors Service

Iceland's ESG Credit Impact Score is neutral to low (CIS-2), reflecting neutral to low exposure to environmental and social risks andvery strong institutions.
Exhibit 4

ESG Issuer Profile Scores

Source: Moody's Investors Service

Environmental
Iceland's exposure to environmental risks is neutral to low (E-2) as the country derives nearly all of its energy generation and use fromrenewable sources, in particular hydroelectric power and geothermal energy. Iceland's unique geological features imply some exposure
to physical climate risks but also offer opportunities for the country's key sectors. The impact of warming seas on fish stocks in Icelandic
waters is not yet clear; while some varieties may migrate out of Iceland's waters as seen with the decline in capelin fish stocks in 2019,other species have migrated into Icelandic waters. Also, the sector has considerable flexibility to adapt to changing stocks and has
proven so many times. Warmer temperatures are favourable for plant productivity and agriculture. Around 11% of Iceland's land massconsists of glaciers; while the melting of glaciers increases the risk of landslides, it also increases availability of hydropower, at least forseveral decades.
Social
We assess its S issuer profile score as neutral to low (S-2). Iceland's demographic profile is more favourable than in many othercountries because of long working lives, high participation rates of women and the flexibility of the labour force. Iceland also benefits
from high-quality education, access to basic services and housing availability. Indicators for access to healthcare are very strong, as seenin the fast response to the coronavirus pandemic. Social risks exert themselves through intensive wage negotiations between employers
and trade unions every four years which can impact on Iceland's competitiveness.
Governance
Iceland's very high institutions and governance strength is reflected in a positive G issuer profile score (G-1). This is underpinned by its
strong scores in most of the Worldwide Governance Indicators, which reflects the high credibility of its institutions and the country's

4

17 January 2023

Government of Iceland – A2 stable: Regular update

MOODY'S INVESTORS SERVICE

SOVEREIGN AND SUPRANATIONAL

well-developed macroeconomic policy environment. This contributes to its relatively strong resilience to E and S risks, along with very
high wealth levels.
ESG Issuer Profile Scores and Credit Impact Scores for the rated entity/transaction are available on Moodys.com. In order to view thelatest scores, please click here to go to the landing page for the entity/transaction on MDC and view the ESG Scores section.
All of these considerations are further discussed in the “Credit profile” section above. Our approach to ESG is explained in our report on
how the scores depict varied and largely credit-negative impact of ESG factors and our cross-sector methodology General Principles forAssessing Environmental, Social and Governance Risks Methodology.

Recent developments
Economy continues to grow, supported by tourism
We estimate that the economy grew by 5.5% in 2022, supported by the strong recovery in tourism as well as dynamic private
consumption. Domestic demand has grown strongly thanks to a continued increase in purchasing power, pent-up demand coming
out of the pandemic and a strong labour market, with unemployment reaching its lowest level since 2018 in October 2022 at 2.8%.
Exports have grown substantially, mostly as a result of the recovery in tourism activity with arrivals in line with 2019 levels since May
2022. On the other hand, exports of fish and aluminium, Iceland's other two main export products, have not increased much in volume
terms due to capacity constraints although higher prices have led to high growth in value terms. Import growth has been strong, owing
to Iceland's high reliance on imported inputs for domestic production as well as strong outward travel by Icelanders.
Over the course of the year, growth rates have slowed, from 8% year-over-year in the first quarter of 2022, to 5.4% in the third
quarter. We estimate that growth momentum slowed further in the last quarter of 2022, reflecting mainly the slowdown in exports as
global demand weakened.
In 2023, we expect the slowdown to continue, in particular in the first half of the year. For the year as a whole we forecast real
GDP growth of 2.5%, as tighter monetary policy and more moderate economic activity in Iceland's key trading partners impact theeconomy. Higher cost of funding (the central bank's policy rate now stands at 6%) will weigh on the domestic economy, particularly
through lower investment. We also expect domestic consumption to be somewhat weaker as inflation continues to weigh onpurchasing power (real wage growth turned negative in June), although saving rates are still higher than before the pandemic and could
support consumption. The marked economic slowdown we forecast in the US (Aaa stable) and Europe, Iceland's two largest tourism
markets, will likely weigh on demand for travel though we continue to expect arrivals will remain near record high.
Wage agreements do not add to inflation, removing a key source of uncertainty
The signing of new wage agreements in December 2022 by the majority of private sector employees following the expiration of thosesigned in 2019 has reduced a key source of uncertainty around the inflation outlook. Wages are set to increase by 6.75% in 2023 (witha cap for higher incomes), which will broadly keep purchasing power constant in real terms. In addition, additional wage increases
related to strong economic growth planned in the 2019 agreements will not be implemented.
As a result, we forecast inflation will gradually decline in 2023 to below 5% by the end of the year down from 9.6% in December 2022.
House prices are the main driver of inflation and we expect the strong monetary policy reaction, tighter macroprudential measures aswell as higher dwelling completions will help ease house price growth in 2023. That said, the short-term nature of the wage agreement,
which expires in early 2024, has not fully alleviated the risks to the inflation outlook in particular if inflation surprises on the upside
during the year, leading to higher wage demands.

5

17 January 2023

Government of Iceland – A2 stable: Regular update

SOVEREIGN AND SUPRANATIONAL

MOODY'S INVESTORS SERVICE

Exhibit 5

Exhibit 6

Growth will likely slow down in coming quarters, but remain
positive

Inflation has peaked following strong action by the central bankConsumer price index (% change) and components (pp)Real GDP growth (% change) and components (pp)Private consumption
Gross capital formation
Imports

Goods

Public consumption
Exports
GDP

HousingServices

Other

CPI

12

30

10

20

8

10

6

0

4

2

-10

0
-20

-2

Source: Statistics Iceland and Moody's Investors Service-4
Jan-12
Jun-12
Nov-12
Apr-13
Sep-13
Feb-14Jul-14
Dec-14May-15Oct-15Mar-16Aug-16
Jan-17
Jun-17
Nov-17
Apr-18
Sep-18
Feb-19Jul-19Dec-19
May-20
Oct-20Mar-21
Aug-21
Jan-22Jun-22
Nov-222022-Q3

2022-Q2

2022-Q1

2021-Q4

2021-Q3

2021-Q2

2021-Q1

2020-Q4

2020-Q3

2020-Q2

2020-Q1

2019-Q4

2019-Q3

2019-Q2

2019-Q1

2018-Q4

2018-Q3

2018-Q2

2018-Q1

2017-Q4

2017-Q3

2017-Q2

2017-Q1

2016-Q4

2016-Q3-30

Source: Central Bank of Iceland and Moody's Investors Service

2023 budget underscores commitment to fiscal consolidation
In December 2022, the Icelandic Parliament approved the 2023 budget targeting a deficit of 3.0% of GDP at the central government
level down from a revised target of 3.9% in 2022. The strong economic recovery as well as higher inflation have increased revenues
more strongly than budgeted, which is partly offset by higher interest payments given the large share of inflation-linked debt at around
25% of the stock of Treasury debt. The decline in the deficit this year will be chiefly driven by higher revenue while expenditure will
increase at a slower pace, mostly driven by inflation-indexed spending such as benefits and wages. We pencil in budget deficits at thegeneral government level of around 4.4% of GDP in 2022 and 3.5% in 2023, reflecting the deficit of local authorities as well as interest
costs paid on the inflation-linked bonds of the HF-Fund. For the purpose of the fiscal rules, the reclassified companies are excluded.
The government's objective to put debt on a downward trajectory by 2026 is likely to have already been met in 2022 with central
government debt standing at around 43% of GDP as of end-2022, down from 45% in 2021. According to our definition (which includes
the HF-Fund and smaller reclassified entities), the public debt ratio was significantly higher at 68% of GDP in 2022. We expect the debt
ratio to continue to decline and return to its 2019 level by the end of 2023.

6

17 January 2023

Government of Iceland – A2 stable: Regular update

SOVEREIGN AND SUPRANATIONAL

MOODY'S INVESTORS SERVICE

Moody's rating methodology and scorecard factors: Iceland - A2 stable
Factor / Sub-Factor

MetricIndicator Year

Indicator

Factor 1: Economic strength
Growth dynamics

Initial Factor Final Factor Weights
Score
Score

baa1
2.5

baa3

25%

MAD Volatility in Real GDP Growth (%)

2012-2021

1.2

baa3

10%
30%

Nominal GDP ($ billion)

2021

25.6

b2

National income

GDP per capita (PPP, Intl$)

2021

59,965.5

aaaAdjustment to factor 1# notches

Factor 2: Institutions and governance strength

Policy effectiveness

aa2

aa2

50%
20%

Strength of civil society and the judiciary

aaa

20%

Fiscal policy effectiveness

aa

30%

Monetary and macroeconomic policy effectivenessa

Other adjustment to factor 2# notches

F1 x F2: Economic resiliency

Factor 3: Fiscal strength

Specified adjustments

max ±9aa

Government default history and track record of arrears

Debt affordability

35%
0Quality of legislative and executive institutions

Specified adjustment

Debt burden

30%
0max -30

max ±3

a1

a1

baa1

baa1

General government debt/GDP (%)

2021

75.3

ba3

25%

General government debt/revenue (%)

2021

182.3

a3

25%

General government interest payments/revenue (%)

2021

8.3

a2

25%

General government interest payments/GDP (%)

2021

3.4

ba2

Total of specified adjustment (# notches)

25%

1

1
0

Debt Trend - Historical Change in Debt Burden

2013-2021

-46.7

0

Debt Trend - Expected Change in Debt Burden

2021-2023F

-8.3

1

1

General Government Foreign Currency Debt/ GDP

2021

11.0

-1

-1

Other non-financial public sector debt/GDP

2021

2.1

0

0

Government Financial Assets including Sovereign Wealth Funds / GDP

2021

11.2

1

1

F1 x F2 x F3: Government financial strengtha1

a1

Factor 4: Susceptibility to event riskaOther adjustment to factor 3# notches

0

Domestic political risk and geopolitical riskaaEase of access to fundingaa

Government liquidity riskaaHigh refinancing riskaRisk of banking sector credit event (BSCE)
Total domestic bank assets/GDP

Latest available

baa3

baa3

2021

151.4

80-180# notches

External vulnerability riskMin

max ±2aa# notches# notches

F1 x F2 x F3 x F4: Scorecard-indicated outcome

max -2a0aExternal vulnerability risk
Adjustment to F4 EVR
Overall adjustment to F4

max ±3aa0Banking sector risk

Adjustment to F4 BSRamax ±6aa

Political risk

Specified adjustment50%

2017-2026F

Scale of the economy

Quality of institutions

baa1

Average real GDP growth (%)

00
Aa3 - A2

max ±2max -2Aa3 - A2

Note: While information used to determine the grid mapping is mainly historical, our ratings incorporate expectations around future metrics and risk developments that may differ from the ones implied by the scorecard-indicatedoutcome. Thus, the rating process is deliberative and not mechanical, meaning that it depends on peer comparisons and should leave room for exceptional risk factors to be taken into account that may result in an assigned rating
outside the scorecard-indicated outcome. For more information please see our Sovereign Ratings Methodology.
Footnotes: (1) Initial factor score: scorecard indicators combine with the automatic adjustments to produce an initial factor score for every rating factor, as detailed in Moody's Sovereign Ratings Methodology. (2) Final factor
score: where additional analytical considerations exist, initial factor scores are augmented to produce a final factor score. Guidance on additional factors typically considered can be found in Moody's Sovereign Ratings Methodology;
details on country-specific considerations are provided in Moody's research. (3) Scorecard-indicated outcome: Factor 1: Economic Strength, and Factor 2: Institutions and Governance Strength, combine with equal weight into a
construct we designate as Economic Resiliency (ER). An aggregation function then combines ER and Factor 3: Fiscal Strength, following a non-linear pattern where Fiscal Strength has higher weight for countries with moderate ER
and lower weight for countries with high or low ER. As a final step, Factor 4, a country's Susceptibility to Event Risk, is a constraint which can only lower the government financial strength as given by combining the first three factors.
(4) There are 20 ranking categories for quantitative sub-factors: aaa, aa1, aa2, aa3, a1, a2, a3, baa1, baa2, baa3, ba1, ba2, ba3, b1, b2, b3, caa1, caa2, caa3, ca and 8 ranking categories for qualitative sub-factors: aaa, aa, a,baa, ba, b, caa, ca (5) Indicator value: if not explicitly stated otherwise, the indicator value corresponds to the latest data available.

7

17 January 2023

Government of Iceland – A2 stable: Regular update

MOODY'S INVESTORS SERVICE

SOVEREIGN AND SUPRANATIONAL

Moody's related publications» Sector in-Depth: Banks - Europe: Domestic focus and strong capital buffers support Icelandic banks' strong performance, 8November 2022
» Credit Opinion: Government of Iceland - A2 stable: Update following methodology update, 29 November 2022
» Credit Opinion: Government of Iceland - A2 stable: Regular update, 23 August 2022
» Issuer In-Depth: Government of Iceland – A2 stable: Annual credit analysis, 29 July 2022
» Sector in-Depth: Banking - Iceland: Iceland Macro Profile: Strong -, 24 May 2022
» Rating Methodology: Rating Methodology: Sovereigns, 22 November 2022
To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of this report and that more recent reports may be available. All
research may not be available to all clients.

8

17 January 2023

Government of Iceland – A2 stable: Regular update

MOODY'S INVESTORS SERVICE

SOVEREIGN AND SUPRANATIONAL© 2023 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDITCOMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY,“PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUALFINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’SRATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’SCREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICEVOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOTSTATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND
RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER
OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER
OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDITRATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR.
MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING
THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE,HOLDING, OR SALE.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE
RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKINGAN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIEDOR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE
FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTENCONSENT.
MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS
DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as wellas other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,
MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the credit rating process or in preparing its Publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any
indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any
such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of aparticular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory
losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the
avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,
representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDITRATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including
corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating,agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s
Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding
certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service, Inc. and have also
publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance— Charter Documents - Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s InvestorsService Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended
to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, yourepresent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or
indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as tothe creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s
Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally
Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registeredwith the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services
rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER

9

17 January 2023

1354078

Government of Iceland – A2 stable: Regular update