# EDGAR Filing Document

**Accession Number:** 0001628352
**File Stem:** 0001628352-23-000001
**Filing Date:** 2023-2
**Character Count:** 322729
**Document Hash:** 81758c9d972070882ecbabb50e8dbee6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628352-23-000001.hdr.sgml**: 20230201

**ACCESSION NUMBER**: 0001628352-23-000001

**CONFORMED SUBMISSION TYPE**: NRSRO-UPD

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230201

**DATE AS OF CHANGE**: 20230201

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HR Ratings
- **CENTRAL INDEX KEY:** 0001628352
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** O5
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** NRSRO-UPD
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 110-00129
- **FILM NUMBER:** 23577774

**BUSINESS ADDRESS:**
- **STREET 1:** GUILLERMO GONZALEZ CAMARENA 1200
- **STREET 2:** FLOOR 10 CENTRO DE CIUDAD SANTA FE
- **CITY:** MEXICO CITY
- **STATE:** O5
- **ZIP:** 01210
- **BUSINESS PHONE:** 01525515003130

**MAIL ADDRESS:**
- **STREET 1:** GUILLERMO GONZALEZ CAMARENA 1200
- **STREET 2:** FLOOR 10 CENTRO DE CIUDAD SANTA FE
- **CITY:** MEXICO CITY
- **STATE:** O5
- **ZIP:** 01210

### Attached PDF Documents

**Attachment 1:** `formnrsroF.pdf`

FORM NRSRO

| OMB APPROVAL |
| --- |
| OMB Number: 3235-0625 |
| Expires: Dec. 31, 2023 |
| Estimated average burden hours per response: 36 |

# APPLICATION FOR REGISTRATION AS A NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO)

SEC 1541 (1-15)

Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

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# APPLICATION FOR REGISTRATION AS A
NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATION (NRSRO)

☐ INITIAL APPLICATION
☐ ANNUAL CERTIFICATION
☐ APPLICATION TO ADD CLASS
OF CREDIT RATINGS
☑ UPDATE OF REGISTRATION
Items and/or Exhibits Amended:
Item 2, Exhibit 2, 3, 4, 5, 6, 7
☐ APPLICATION SUPPLEMENT
Items and/or Exhibits Supplemented:
☐ WITHDRAWAL FROM REGISTRATION

Important: Refer to Form NRSRO Instructions for General Instructions, Item-by-Item Instructions, an Explanation of Terms, and the Disclosure Reporting Page (NRSRO). "You" and "your" mean the person filing or furnishing, as applicable, this Form NRSRO. "Applicant" and "NRSRO" mean the person filing or furnishing, as applicable, this Form NRSRO and any credit rating affiliate identified in Item 3.

1. A. Your full name:

HR Ratings de Mexico, S.A. de C.V.

B. (i) Name under which your credit rating business is primarily conducted, if different from Item 1A:
HR Ratings

(ii) Any other name under which your credit rating business is conducted and where it is used (other than the name of a credit rating affiliate identified in Item 3):

NA

C. Address of your principal office (do not use a P.O. Box):

| Guillermo Gonzalez Camarena 1200, Floor 10, Centro de Ciudad Santa Fe (Number and Street) | Mexico City (City) | Mexico (State/Country) | 01210 (Zip/Postal Code) |
| --- | --- | --- | --- |

D. Mailing address, if different:

NA

| (Number and Street) | (City) | (State/Country) | (Zip/Postal Code) |
| --- | --- | --- | --- |

E. Contact person (See Instructions):

Alejandra Medina Diaz Head of Compliance

(Name and Title)

| Guillermo Gonzalez Camarena 1200, Floor 10, Centro de Ciudad Santa Fe (Number and Street) | Mexico City (City) | Mexico (State/Country) | 01210 (Zip/Postal Code) |
| --- | --- | --- | --- |

CERTIFICATION:

The undersigned has executed this Form NRSRO on behalf of, and on the authority of, the Applicant/NRSRO. The undersigned, on behalf of the Applicant/NRSRO, represents that the information and statements contained in this Form, including Exhibits and attachments, all of which are part of this Form, are accurate in all significant respects. If

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this is an ANNUAL CERTIFICATION, the undersigned, on behalf of the NRSRO, represents that the NRSRO's application on Form NRSRO, as amended, is accurate in all significant respects.

2/1/2023

HR Ratings de Mexico, S.A. de C.V.

(Date)

(Name of the Applicant/NRSRO)

By: /s/ Pedro Latapi Angelini (Signature) Pedro Latapi Angelini, Chief Executive Officer (Print Name and Title)

2. A. Your legal status:

☑ Corporation ☐ Limited Liability Company ☐ Partnership ☐ Other (specify) _________

B. Month and day of your fiscal year end: 12/31

C. Place and date of your formation (i.e., state or country where you were incorporated, where your partnership agreement was filed, or where you otherwise were formed):

State/Country of formation: Mexico Date of formation: 6/22/07

3. Your credit rating affiliates (See Instructions):

HR Ratings, LLC United States, 2990 Ponce de Leon Blvd, Coral Gables, Florida, ZP 33134

(Name) (Address)

(Name) (Address)

(Name) (Address)

(Name) (Address)

(Name) (Address)

4. The designated compliance officer of the Applicant/NRSRO (See Instructions):

Alejandra Medina Diaz Head of Compliance

(Name and Title)

Guillermo Gonzalez Camarena 1200, Mexico City Mexico 01210

Floor 10, Centro de Ciudad Santa Fe (City) (State/Country) (Postal Code)

(Number and Street)

5. Describe in detail how this Form NRSRO and Exhibits 1 through 9 to this Form NRSRO will be made publicly and freely available on an easily accessible portion of the corporate Internet website of the Applicant/NRSRO (See Instructions):

This NRSRO Form and its Exhibits will be made readily accessible for free at:

https://www.hrratings.com/regulatory_disclosure/nrsro.xhtml

6. COMPLETE ITEM 6 ONLY IF THIS IS AN INITIAL APPLICATION, APPLICATION SUPPLEMENT, OR APPLICATION TO ADD A CLASS OF CREDIT RATINGS.

A. Indicate below the classes of credit ratings for which the Applicant/NRSRO is applying to be registered. For each class, indicate the approximate number of obligors, securities, and money market instruments in that class as of the date of this application for which the Applicant/NRSRO has an outstanding credit rating and the approximate date the Applicant/NRSRO began issuing credit ratings as a "credit rating agency" in that class on a continuous basis through the present (See Instructions):

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| Class of credit ratings | Applying for registration | Approximate number currently outstanding | Approximate date issuance commenced |
| --- | --- | --- | --- |
| financial institutions as that term is defined in section 3(a)(46) of the Exchange Act (15 U.S.C. 78c(a)(46)), brokers as that term is defined in section 3(a)(4) of the Exchange Act (15 U.S.C. 78c(a)(4)), and dealers as that term is defined in section 3(a)(5) of the Exchange Act (15 U.S.C. 78c(a)(5)) | ☐ |  |  |
| insurance companies as that term is defined in section 3(a)(19) of the Exchange Act (15 U.S.C. 78c(a)(19)) | ☐ |  |  |
| corporate issuers | ☐ |  |  |
| issuers of asset-backed securities as that term is defined in 17 CFR 229.1101(c) | ☐ |  |  |
| issuers of government securities as that term is defined in section 3(a)(42) of the Exchange Act (15 U.S.C. 78c(a)(42)), municipal securities as that term is defined in section 3(a)(29) of the Exchange Act (15 U.S.C. 78c(a)(29)), and foreign government securities | ☐ |  |  |

**B.** Briefly describe how the Applicant/NRSRO makes the credit ratings in the classes indicated in Item 6A readily accessible for free or for a reasonable fee (See Instructions):

**C.** Check the applicable box and attach certifications from qualified institutional buyers, if required (See Instructions):

- ☐ The Applicant/NRSRO is attaching ______ certifications from qualified institutional buyers to this application. Each is marked "Certification from Qualified Institutional Buyer."
- ☐ The Applicant/NRSRO is exempt from the requirement to file certifications from qualified institutional buyers pursuant to section 15E(a)(1)(D) of the Exchange Act.

**Note:** You are not required to make a Certification from a Qualified Institutional Buyer filed with this Form NRSRO publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep these certifications confidential by marking each page "Confidential Treatment" and complying with Commission rules governing confidential treatment. The Commission will keep the certifications confidential upon request to the extent permitted by law.

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# **7. DO NOT COMPLETE ITEM 7 IF THIS IS AN INITIAL APPLICATION.**

**A.** Indicate below the classes of credit ratings for which the NRSRO is currently registered. For each class, indicate the approximate number of obligors, securities, and money market instruments in that class for which the NRSRO had an outstanding credit rating as of the most recent calendar year end and the approximate date the NRSRO began issuing credit ratings as a "credit rating agency" in that class on a continuous basis through the present (See Instructions):

| Class of credit rating | Currently registered | Approximate number outstanding as of the most recent calendar year end | Approximate date issuance commenced |
| --- | --- | --- | --- |
| financial institutions as that term is defined in section 3(a)(46) of the Exchange Act (15 U.S.C. 78c(a)(46)), brokers as that term is defined in section 3(a)(4) of the Exchange Act (15 U.S.C. 78c(a)(4)), and dealers as that term is defined in section 3(a)(5) of the Exchange Act (15 U.S.C. 78c(a)(5)) | ☑ | 789 | 2009 |
| insurance companies as that term is defined in section 3(a)(19) of the Exchange Act (15 U.S.C. 78c(a)(19)) | ☐ |  |  |
| corporate issuers | ☑ | 558 | 2010 |
| issuers of asset-backed securities as that term is defined in 17 CFR 229.1101(c) | ☐ |  |  |
| issuers of government securities as that term is defined in section 3(a)(42) of the Act (15 U.S.C. 78c(a)(42)), municipal securities as that term is defined in section 3(a)(29) of the Exchange Act (15 U.S.C. 78c(a)(29)), and foreign government securities | ☑ | 455 | 2008 |

**B.** Briefly describe how the NRSRO makes the credit ratings in the classes indicated in Item 7A readily accessible for free or for a reasonable fee (See Instructions):

Credit ratings in the classes indicated in Item 7A are readily accessible for free at https://www.hrratings.com

**8.** Answer each question. Provide information that relates to a "Yes" answer on a Disclosure Reporting Page (NRSRO) and submit the Disclosure Reporting Page with this Form NRSRO (See Instructions). You are not required to make any disclosure reporting pages submitted with this Form publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep any disclosure reporting pages confidential by marking each page "Confidential Treatment" and complying with Commission rules governing confidential treatment. The Commission will keep the disclosure reporting pages confidential upon request to the extent permitted by law.

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|  | YES | NO |
| --- | --- | --- |
| A. Has the Applicant/NRSRO or any person within the Applicant/NRSRO committed or omitted any act, or been subject to an order or finding, enumerated in subparagraphs (A), (D), (E), (G), or (H) of section 15(b)(4) of the Securities Exchange Act of 1934, been convicted of any offense specified in section 15(b)(4)(B) of the Securities Exchange Act of 1934, or been enjoined from any action, conduct, or practice specified in section 15(b)(4)(C) of the Securities Exchange Act of 1934 in the ten years preceding the date of the initial application of the Applicant/NRSRO for registration as an NRSRO or at any time thereafter? | ☐ | ☑ |
| B. Has the Applicant/NRSRO or any person within the Applicant/NRSRO been convicted of any crime that is punishable by imprisonment for 1 or more years, and that is not described in section 15(b)(4) of the Securities Exchange Act of 1934, or been convicted of a substantially equivalent crime by a foreign court of competent jurisdiction in the ten years preceding the date of the initial application of the Applicant/NRSRO for registration as an NRSRO or at any time thereafter? | ☐ | ☑ |
| C. Is any person within the Applicant/NRSRO subject to any order of the Commission barring or suspending the right of the person to be associated with an NRSRO? | ☐ | ☑ |

# **9. Exhibits (See Instructions).**

| Exhibit 1. Credit ratings performance measurement statistics. ☐ Exhibit 1 is attached and made a part of this Form NRSRO. |
| --- |
| Exhibit 2. A description of the procedures and methodologies used in determining credit ratings. ☑ Exhibit 2 is attached and made a part of Form NRSRO. |
| Exhibit 3. Policies or procedures adopted and implemented to prevent the misuse of material, nonpublic information. ☑ Exhibit 3 is attached and made a part of this Form NRSRO. |
| Exhibit 4. Organizational structure. ☑ Exhibit 4 is attached to and made a part of this Form NRSRO. |
| Exhibit 5. The code of ethics or a statement of the reasons why a code of ethics is not in effect. ☑ Exhibit 5 is attached to and made a part of this Form NRSRO. |
| Exhibit 6. Identification of conflicts of interests relating to the issuance of credit ratings. ☑ Exhibit 6 is attached to and made a part of this Form NRSRO. |
| Exhibit 7. Policies and procedures to address and manage conflicts of interest. ☑ Exhibit 7 is attached to and made a part of this Form NRSRO. |

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| Exhibit 8. Certain information regarding the credit rating agency's credit analysts and credit analyst supervisors. ☐ Exhibit 8 is attached to and made a part of this Form NRSRO. |
| --- |
| Exhibit 9. Certain information regarding the credit rating agency's designated compliance officer. ☐ Exhibit 9 is attached to and made a part of this Form NRSRO. |
| Exhibit 10. A list of the largest users of credit rating services by the amount of net revenue earned from the user during the fiscal year ending immediately before the date of the initial application. ☐ Exhibit 10 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 11. Audited financial statements for each of the three fiscal or calendar years ending immediately before the date of the initial application. ☐ Exhibit 11 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 12. Information regarding revenues for the fiscal or calendar year ending immediately before the date of the initial application. ☐ Exhibit 12 is attached to and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |
| Exhibit 13. The total and median annual compensation of credit analysts. ☐ Exhibit 13 is attached and made a part of this Form NRSRO. Note: You are not required to make this Exhibit publicly available on your corporate Internet website pursuant to Exchange Act Rule 17g-1(i). You may request that the Commission keep this Exhibit confidential by marking each page 'Confidential Treatment' and complying with Commission rules governing confidential treatment. The Commission will keep the information and documents in the Exhibit confidential upon request to the extent permitted by law. |

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**Attachment 2:** `Exhibit2.pdf`

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

TABLE OF CONTENTS

1. Procedures
2. Ratings Scales
3. Methodologies

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

1

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 1. PROCEDURES

### A. Start of the Rating Process

The credit rating process begins following an initial contact from the Business Development Department with the entity or the issuer by sending sales materials, which include a corporate presentation and general datasheet. HR Ratings then sends an economic proposal, engagement letter or proposed service agreement, with the list of information required as part of the rating process.

A service agreement or the appropriate legal instrument is then finalized and sent to the entity or issuer, together with the Code of Conduct. The entity or issuer and the HR Ratings Business Development Director sign the service agreement or appropriate legal instrument, and the contractual legal relationship with the entity or issuer is formalized.

HR Ratings may issue unsolicited ratings, for which HR Ratings does not receive any payment and may or not may sign a service agreement, engagement letter or legal instrument. Where applicable, an NDA will be signed. Unsolicited ratings will be prepared according to the same methodologies as requested ratings and will follow the same rating process, accordingly. HR Ratings will also do the surveillance of unsolicited ratings and may withdraw an unsolicited rating at any time.

The Business Development Director and the entity or issuer designate the individuals authorized to send and receive information throughout the course of the rating process. The initial contact information is entered into HR's internal electronic system.

HR Ratings' internal control procedures determine the sufficiency of the information to be used to assign the rating. This information must be generated and provided by trustworthy sources.

Public and private information from parties other than the issuer is also used as part of the credit rating process. Depending on the reliability of the source, HR Ratings reserves the right to evaluate third party information. Information derived from official governmental sources is presumed to be valid. HR Ratings uses all information available at the time of analysis, including available public information that is relevant to the specific rating, as well as non-public information, consistent with regulatory norms.

### B. Rating Process

HR Ratings' analysis begins with the assignment of the Area Director or the Lead Analyst by the Operations Department. The other analysts, who are secondarily responsible for the project, assist in the rating process. The Lead Analyst, together with any secondary analysts, comprise the 'analysis team.' The Operations Department will consider the log of potential conflicts of interest maintained on HR Ratings' internal electronic system for the assignment.

The Area Director and / or Lead Analyst, and any secondary analysts, are responsible for conducting the entire analysis, as well as the presentation to the Credit Analysis Committee, including preparation of all supporting documents such as the: (i) analysis report (or press release when there is no analysis report), (ii) if applicable, the rating letter, technical note, legal opinion, datasheet for the influential rating and/or Information Disclosure Form (17g-7 Form); (iii) number and type of model used and minutes of the previous

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS$^{2}$

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

Credit Analysis Committee regarding the entity, issuer or operation in question. These documents are referred to jointly as the Credit Analysis Committee Package.

When the rating considers influential ratings assigned by other rating agencies, the analysis team monitors these influential ratings weekly. For the purposes of the above, each area of the Credit Analysis Department maintains the current datasheet corresponding to the information for the influential rating in question by the last business day of each week.

In the event of any questions or issues regarding the operation of the analysis team, a meeting is arranged with the Chief Credit Officer and Area Director to clarify any questions before the presentation of the Credit Analysis Committee Package to the Credit Analysis Committee. The Credit Analysis Committee Package is then distributed to all committee members at least twelve (12) hours in advance of the Credit Analysis Committee review, and can be distributed, if necessary, in a shorter period when required by the analysis team.

The following steps are followed for each rating by the assigned analyst:

1. The analyst receives the assignment to begin the rating process and proceeds to gather available public and private information on the issuer and/or offering.
2. The analyst sends the issuer an email request for information covering the following topics:
   - Financial information
   - Business, market, and general relevant economic information
   - Institutional framework
   - Characteristics of the offering (if applicable)
3. If applicable and in accordance with the methodology, the analyst schedules a visit, videocall or virtual meeting, with the entity or issuer to understand the specific characteristics of the issuer, operation and/or offering. The analyst may request further information depending on the complexity of the entity or operation.
4. Based on this information, model and methodology, the analyst prepares an evaluation and analysis of the credit strengths and payment capacities of both the issuer and/or offering; and,
5. The analyst prepares the presentation for the Credit Analysis Committee including all supporting documents in the Credit Analysis Committee Package.

C. Credit Analysis Committee Structure and Voting Process

i. Quorum

In accordance with the HR Ratings' General Operations Plan, the Credit Analysis Committee will meet whenever:

- A rating action is required.
- Any relevant event occurs that could impact a current rating; or

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

3

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

- An opinion is to be issued on any industry sector. In this case, the meeting of the Credit Analysis Committee will be optional, provided the Chief Credit Officer has given his approval.

The following people sit in the Analysis Committee, in voting order:

- Analysis Manager
- Analysis Director
- Analysis Executive Director
- Chief Credit Officer ("CCO")
- Where appropriate, the Chief Officer of Economic Analysis

Prior to each Credit Analysis Committee meeting, the members of the Committee will certify, through the Company's internal electronic system, that they have no conflict of interest with the entity or issuer. The internal electronic system will also notify the Chief Compliance Officer if there is a conflict of interest reported on the system.

The Committee will meet with a quorum of at least 4 (four) members, and committees may meet simultaneously with different agendas.

A member of the Credit Analysis Committee may not participate in more than 4 (four) committee meetings on the same day for unsecured or structured initial ratings or annual reviews, unless they participate as Lead Analysts and/or Area Directors, or in the case of Committee meetings to determine ratings for entities belonging to the same control group, consortium and/or related entities.

The President of the Analysis Committee must belong to a different analysis area than that of the Analysis Director or Responsible Analyst. At least half of the members who attend the Analysis Committee must be Directors or Managers of an analysis area different than that of the Responsible Analyst and/or Area Director of the entity, issue or operation being rated.

ii. Voting Process

Decisions are taken by an absolute majority, meaning, by the vote in the same direction of half of the Credit Analysis Committee, plus one, present at the meeting. Unless the Lead Analyst is a member of the Credit Analysis Committee, the Lead Analyst only has a "voice", but no vote.

The Credit Analysis Committee reviews and discusses the proposed rating and upon reaching a conclusion, the Credit Analysis Committee issues a rating and once the rating has been given, the Lead Analyst notifies the issuer of the decision reached by the Credit Analysis Committee, the same day as the rating was assigned. Under no circumstance will the entity or issuer receive any prior notice as to the possible outcome of the rating process. Rather, the entity or issuer will receive a notification only when the Credit Analysis Committee has issued its official opinion.

If the issuer agrees, then HR Ratings proceeds with the publication of the rating. The issuer has up to two (2) business days after receiving the rating report to state what it deems appropriate regarding the report and, if applicable, deliver any additional relevant documentation to be analyzed and evaluated by the Credit Analysis Committee. If there is no response from the issuer within these two (2) business days, HR Ratings will publish the rating the next business day.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

4

![img-1.jpeg](img-1.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

During this time, the entity or issuer may indicate whether the rating will be held private or made public. The ratings on securities registered or intended to be registered in the National Securities Register in Mexico will always be made public, as well as any modifications, ratifications or withdrawals of these ratings.

#### **D. Rotation policy for the participants in the rating procedures and Credit Analysis Committee**

The Lead Analyst responsible for the development and, where appropriate, monitoring of the rating process, cannot be involved with an entity or companies within the group to which that client belongs, for more than a five (5) year period since its first participation in the initial rating or monitoring with respect to that entity. Such analysts may resume these functions only after a minimum one (1) year period break. A substitute analyst will be used, if necessary, in the fourth year.

Moreover, the analyst responsible for the development and, where appropriate, monitoring of the rating process, cannot be involved with an entity or companies within the group to which that client belongs, for more than a five (5) year period, since its first participation in the initial rating or monitoring with respect to that client. Such analysts may resume these functions only after a minimum one (1) year period break.

In the case of the member of the Credit Analysis Committee responsible for the approval of the credit rating with respect to an entity or companies within the group to which that client belongs, such committee should rotate at least on a seven (7) year basis, returning after a minimum one-year break. To this end, HR Ratings rotates at least half of the members of each committee during this timeframe.

#### **E. Surveillance and Monitoring**

Monitoring refers to periodical internal rating reviews, depending on the entity, issuer, operation, or instrument that may or may not result in a rating action. The monitoring review will be monthly, quarterly, or semi-annually depending on the availability of information, or any other frequency required by HR.

Surveillance refers to the periodical annual review HR performs on all ratings, independent of internal monitoring, the results of which are reported to the public through a rating action.

It is important to note that HR Ratings makes no difference regarding the qualitative and quantitative factors under the initial or surveillance rating. Thus, an initial and a surveillance rating consider the same weight for each of the factors given.

HR Ratings adheres to the view that surveillance ratings can be even more important than the initial rating during the life of the issue until maturity. For this reason, the surveillance for tracking and monitoring all of the ratings assigned by HR Ratings is a vital ongoing activity.

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

5

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

i. Monitoring chart

![img-2.jpeg](img-2.jpeg)

F. Procedures to Withdraw or Suspend a Rating

The Credit Analysis Committee may withdraw the rating given to an entity, issuer, and/or operation on the occurrence of any of the following:

1. For a debt instrument or a credit, when the issuer confirms that the entire amount of the credit or debt security has been repaid in full of no outstanding amount to be rated.
2. For a debt instrument or a credit, when the issuer confirms that the rating assigned has not been used for an issuance or specific credit, and, in consequence, that no funds have been mobilized for said issue or credit, nor for any outstanding current amount.
3. For a debt instrument, when HR Ratings receives the consent of all debtholders of a given issuance to withdraw the rating, by means of an assembly of said debtholders during which the motion to withdraw is unanimously passed.
4. For a debt instrument or a credit, when the period of validity of the initial rating of 1 (one) year passes and the debt instrument has not been placed in the market or the funding from the credit obtained, the rating is automatically withdrawn.
5. When a restructuring of a credit or issuance has been finalized and the Credit Analysis Committee determines that the changes have been substantial, provided another structure is in place.
6. When the entity or issuer has gone into bankruptcy and the rating issued by HR Ratings is no longer necessary.
7. When requested by the entity or issuer to HR Ratings.
8. When the lack of cooperation from the entity or issuer or the lack of information makes assigning a reliable rating impossible. In this event, and if the rating is already public, the reasons for suspension will be communicated to the market. However, before determining the suspension of the rating, HR Ratings will attempt to complete its review based on the information available, making public the results of the review.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

6

![img-3.jpeg](img-3.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

Additional information regarding the rating procedure can be found in HR Ratings' Internet website, at the following location: https://www.hrratings.com/regulatory_disclosure/monitoring.xhtml.

## G. Methodology Committee

HR Ratings has a Methodology Committee, with the responsibility of reviewing, discussing, and approving the Company's rating methodologies and any modifications thereof, and the quantitative models incorporated into said methodologies and the criteria for their application, prior to submitting these to the Board of Directors for final approval.

The Methodology Committee meets at least once a year to review the process and terms established for each rating methodology, or when any of the circumstances established in HR Ratings' Code of Conduct are met.

In addition, the Methodology Committee will assess and validate the qualitative models to be incorporated into any rating methodology and any changes to these models. Similarly, the committee will conduct periodical reviews of the quantitative models incorporated into the rating methodologies.

The Methodology Committee meets on the agreed date to review, discuss, and approve a new methodology or changes to a current methodology. In the event the modification of a methodology is agreed to, the Committee proceeds to analyze whether the ratings previously assigned under earlier methodologies need to be reviewed. This analysis must be documented in the minutes of the corresponding Methodology Committee meeting.

When the Methodology Committee agrees on a new rating methodology or changes to an already existing methodology, the Operations Department takes the necessary steps so that, before the end of the next business day following the Committee meeting, the methodology or its modifications are uploaded to HR Ratings' website for the consultation and comments of market participants. The term for receiving comments from the public will be of at least ten (10) calendar days. HR Ratings will maintain publicly available during this time any comments received through its website and will consider those deemed relevant.

At the end of the time given, the Chief Credit Officer will request the incorporation, when such is the case, of the relevant comments within the following 5 (five) business days and once incorporated, they will ask the Chief Compliance Officer to immediately take the actions necessary for said methodology or modifications to be submitted for the review and formal approval of the Board of Directors.

Within the next 10 (ten) business days from when the methodology or its modifications are approved by the Board of Directors, HR Ratings will notify the Mexican Banking and Securities Commission ('CNBV') of the methodology or its modifications, to comply with the obligation established in the General provisions applicable to rating agencies in Mexico. If no comments are received from the CNBV within twenty (20) business days, HR Ratings will publish the methodology or its modifications in a visible location on the HR Ratings website indicating the reasons for the modifications, when such is the case, immediately at the end of said time and the methodology will be sent to HR Ratings' employees and website subscribers by email.

In the case of methodologies that only apply to ratings in the U.S., HR Ratings will publish the methodology or its modification the next business day after being formally approved by the Board of Directors, by the means indicated in the previous paragraph.

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

7

![img-4.jpeg](img-4.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

## Exhibit 2

Rating methodologies and their modifications will come into effect the same day as published. Once the modifications or additions to a methodology have been published, the Company will use the new methodology for subsequent ratings and, accordingly, will inform the public immediately of the possible effects on the ratings that could be impacted by the new methodology once these ratings have been reviewed.

Accordingly, HR Ratings will issue a new rating for the instruments in question, within six (6) months following the publication of the modification of a methodology.

Once a new NRSRO methodology has been published, HR Ratings will submit to the Securities and Exchange Commission (“SEC”) an updated Form NRSRO. In addition, HR Ratings will submit an updated Form NRSRO when modifications are made to an NRSRO methodology. The Chief Risk Officer will verify that these steps are covered.

In addition, HR Ratings will publish on its website, notice of any significant error identified in any process or methodology that could result in any change to a current rating.

The Methodological Criteria Director will report decisions made by the Methodology Committee to the Company’s analysis team, with the corresponding documentation, the same day as said decisions take effect.

In addition, meetings will be held with the analysis team to explain the important decisions made by the Methodology Committee.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

8

![img-5.jpeg](img-5.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2. HR RATINGS' SCALES

| 2.1 | Long Term Local Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |
| --- | --- | --- |
| 2.2 | Short Term Local Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |
| 2.3 | Long Term Global Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |
| 2.4 | Short Term Global Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |
| 2.5 | Structured Finance Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |
| 2.6 | Market Risk Rating Scale. | https://www.hrratings.com/methodology/rating_scales.xhtml |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

9

![img-6.jpeg](img-6.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.1. Long Term Local Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| HR AAA | The issuer or issue with this rating is considered to have the highest credit quality, offering high safety for timely payment of debt obligations. Maintains minimum credit risk. |
| HR AA | The issuer or issue with this rating is considered to have high credit quality and offers high safety for timely payment of debt obligations. Maintains very low credit risk under adverse economic scenarios. |
| HR A | The issuer or issue with this rating offers acceptable safety for timely payment of debt obligations. Maintains low credit risk. |
| HR BBB | The issuer or issue with this rating provides moderate safety for timely payment of debt obligations. Maintains moderate credit risk, with weakness in the ability to pay in adverse economic scenarios. |
| HR BB | The issuer or issue with this rating provides inadequate safety for timely payment of debt obligations. Maintains high credit risk. |
| HR B | The issuer or issue with this rating provides low safety for timely payment of debt obligations and maintains a high credit risk. The issue or issuer is susceptible to falling into default. |
| HR C | The issuer or issue with this rating exhibits high probability of falling into default in debt obligation payments. |
| HR D | The issuer or issue with this rating has the lowest rating. The issue is already in, or is highly likely to fall into, default in the short term. |

*Our ratings range from HR AAA to HR D, a plus or minus sign may be included in the range from HR AA to HR C, to indicate strength or weakness within a general rating category.*

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

10

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.2. Short Term Local Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| HR1 | The issuer or issue with this rating exhibits high capacity for timely payment of debt obligations in the short term and maintains the lowest credit risk. Within this category, debt instruments and or issuers with features showing relative superiority in terms of credit characteristics may be rated as HR+1. |
| HR2 | The issuer or issue with this rating exhibits an acceptable capacity for timely payment of debt obligations in the short term and maintains a higher credit risk compared with higher credit rating debt instruments. |
| HR3 | The issuer or issue with this rating exhibits a moderate capacity for timely payment of debt obligations in the short term and maintains a higher credit risk compared with higher credit rating debt instruments. |
| HR4 | The issuer or issue with this rating exhibits an insufficient capacity for timely payment of debt obligations in the short term and maintains a very high credit risk. These instruments are susceptible to falling into default. |
| HR5 | The issuer or offering is highly probable they will fall into default on the payment of debt obligations. |
| HR D | The issuer or offering given this rating has the lowest credit rating and they are already in default. |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

11

![img-1.jpeg](img-1.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.3. Long Term Global Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| HR AAA (G) | The issuer or issue with this rating is considered to have the highest credit quality, offering high safety for timely payment of debt obligations. Maintains minimum credit risk on a global scale basis. |
| HR AA (G) | The issuer or issue with this rating is considered to have high credit quality and offers high safety for timely payment of debt obligations. Maintains very low credit risk on a global scale basis, under adverse economic scenarios. |
| HR A (G) | The issuer or issue with this rating offers acceptable safety for timely payment of debt obligations. Maintains low credit risk on a global scale basis. |
| HR BBB (G) | The issuer or issue with this rating provides moderate safety for timely payment of debt obligations. Maintains moderate credit risk on a global scale, with weakness in the ability to pay in adverse economic scenarios. |
| HR BB (G) | The issuer or issue with this rating provides inadequate safety for timely payment of debt obligations. Maintains high credit risk on a global scale basis. |
| HR B (G) | The issuer or issue with this rating provides low safety for timely payment of debt obligations and maintains a high credit risk on a global scale. The issue or issuer is susceptible to falling into default. |
| HR C (G) | The issuer or issue with this rating exhibits high probability of falling into default in debt obligation payments. |
| HR D (G) | The issuer or issue with this rating has the lowest rating on a global scale basis. The issue is already in, or is highly likely to fall into, default in the short term. |

*Our ratings range from HR AAA (G) to HR D (G), a plus or minus sign may be included in the range from HR AA (G) to HR C (G), to indicate strength or weakness within a general rating category.*

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

12

![img-2.jpeg](img-2.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.4. Short Term Global Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| HR1 (G) | The issuer or issue with this rating exhibits high capacity for timely payment of debt obligations in the short term and maintains the lowest credit risk on a global scale basis. Within this category, debt instruments and or issuers with features showing relative superiority in terms of credit characteristics may be rated as HR+1 (G). |
| HR2 (G) | The issuer or issue with this rating exhibits an acceptable capacity for timely payment of debt obligations in the short term and maintains a higher credit risk compared with higher credit rating debt instruments on a global scale basis. |
| HR3 (G) | The issuer or issue with this rating exhibits a moderate capacity for timely payment of debt obligations in the short term and maintains a higher credit risk compared with higher credit rating debt instruments on a global scale basis. |
| HR4 (G) | The issuer or issue with this rating exhibits an insufficient capacity for timely payment of debt obligations in the short term and maintains a very high credit risk on a global scale basis. These instruments are susceptible to falling into default. |
| HR5 (G) | The issuer or offering is highly probable they will fall into default on the payment of debt obligations. |
| HR D (G) | The issuer or offering given this rating has the lowest credit rating and they are already in default. |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

13

![img-3.jpeg](img-3.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.5. Structured Finance Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| HR AAA (E)* | The issue with this rating is considered to have the highest credit quality, offering high safety for timely payment of debt obligations. Maintains minimum credit risk. |
| HR AA (E)* | The issue with this rating is considered to have high credit quality and offers high safety for timely payment of debt obligations. Maintains very low credit risk under adverse economic scenarios. |
| HR A (E)* | The issue with this rating offers acceptable safety for timely payment of debt obligations. Maintains low credit risk. |
| HR BBB (E)* | The issue with this rating provides moderate safety for timely payment of debt obligations. Maintains moderate credit risk, with weakness in the ability to pay in adverse economic scenarios. |
| HR BB (E)* | The issue with this rating provides inadequate safety for timely payment of debt obligations. Maintains high credit risk. |
| HR B (E)* | The issue with this rating provides low safety for timely payment of debt obligations and maintains a high credit risk. The issue is susceptible to falling into default. |
| HR C (E)* | The issue with this rating exhibits high probability of falling into default in debt obligation payments. |
| HR D (E)* | The issue with this rating has the lowest rating. The issue is already in, or is highly likely to fall into, default in the short term. |

(E)* is a local rating.

**Our ratings range from HR AAA (E) to HR D (E), a plus or minus sign may be included in the range from HR AA (E) to HR C (E), to indicate strength or weakness within a general rating category.**

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

14

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

2.6. Short-Term Market Risk Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| 1CP | The asset portfolio has extremely low sensitivity to changes in market conditions. |
| 2CP | The asset portfolio has low sensitivity to changes in market conditions. |
| 3CP | The asset portfolio has low to moderate sensitivity to changes in market conditions. |
| 4CP | The asset portfolio is moderately sensitive to changes in market conditions. |
| 5CP | The asset portfolio has moderate to high sensitivity to changes in market conditions. |
| 6CP | The asset portfolio is highly sensitive to changes in market conditions. |
| 7CP | The asset portfolio is extremely sensitive to changes in market conditions. |

To indicate the rating is a limited rating, HR Ratings assigns at the end of each rating the symbol "(L)".
HR Ratings could also assign the symbol "P" to indicate a preliminary Rating.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

15

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

2.7. Long-Term Market Risk Rating Scale

| Symbol | Definition of the Rating |
| --- | --- |
| 1LP | The asset portfolio has extremely low sensitivity to changes in market conditions. |
| 2LP | The asset portfolio has low sensitivity to changes in market conditions. |
| 3LP | The asset portfolio has low to moderate sensitivity to changes in market conditions. |
| 4LP | The asset portfolio is moderately sensitive to changes in market conditions. |
| 5LP | The asset portfolio has moderate to high sensitivity to changes in market conditions. |
| 6LP | The asset portfolio is highly sensitive to changes in market conditions. |
| 7LP | The asset portfolio is extremely sensitive to changes in market conditions. |

To indicate the rating is a limited rating, HR Ratings assigns at the end of each rating the symbol "(L)".
HR Ratings could also assign the symbol "P" to indicate a preliminary Rating.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 16

![img-4.jpeg](img-4.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

## 2.8. Long-Term ratings for Special-Tax Bonds of U.S.A. Local Entities

| Symbol | Definition of the Rating |
| --- | --- |
| HR AAA | The bond with this rating is considered to have the highest credit quality, offering high safety for timely payment of debt obligations. The pledge is insensitive to market changes and shows steady growth above inflation. The bond offers multiple and adequate protections to bondholders. |
| HR AA | The bond with this rating is considered to have high credit quality and offers high safety for timely payment of debt obligations. Maintains very low credit risk due to the low sensitivity of its pledge to market changes, and to a steady revenue growth. The bond offers adequate protections to bondholders. |
| HR A | The bond with this rating offers acceptable safety for timely payment of debt obligations. Maintains low credit risk to a steady pledge that grows with inflation and that shows low sensitivity to market changes. The bond offers protections to bondholders. |
| HR BBB | The bond with this rating provides moderate safety for timely payment of debt obligations. Maintains moderate credit risk with weakness in the ability to pay in adverse economic scenarios due to a pledge that grows below inflation and with certain volatility. |
| HR BB | The Bond with this rating provides inadequate safety for timely payment of debt obligations. Maintains high credit risk due to a decreasing or volatile pledge, that is sensitive to market changes. |
| HR B | The bond with this rating provides low safety for timely payment of debt obligations and maintains a high credit risk. The bond is susceptible to falling into default due to a decreasing and volatile pledge that is sensitive to market changes and that depends on a concentrated tax base. |
| HR C | The bond with this rating exhibits high probability of falling into default in debt obligation payments. |
| HR D | The bond with this rating has the lowest rating on the U.S.A. scale basis. The issue is already in, or is highly likely to fall into, default in the short term. |

*Our ratings range from HR AAA to HR D, a plus or minus sign may be included in the range from HR AA to HR C, to indicate strength or weakness within a general rating category. To indicate the rating is a limited rating, HR Ratings assigns at the end of each rating the symbol “(L). HR Ratings could also assign the symbol “P” to indicate a preliminary Rating.*

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
 Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

17

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

### 3. METHODOLOGIES

All our methodologies are publicly available at: https://www.hrratings.com/methodology/

#### 3.1. Current versions of methodologies

|  | Methodology |  |
| --- | --- | --- |
| 1 | Methodology for the Evaluation of Charter School Debt ( Long Term and Short Term Global Rating Scales ). | https://www.hrratings.com/docs/metodologia/New%20Charter%20Schools%20Methodology%20R.pdf |
| 2 | General Methodological Criteria. | https://www.hrratings.com/docs/metodologia/General_Methodological_Criteria_January_2023.pdf |
| 3 | Rating Methodology for Mexican Municipalities. | https://www.hrratings.com/docs/metodologia/Methodology_to_Rate_Mexican_Municipalities_(April_2021).pdf |
| 4 | HR Ratings' Corporate Debt Credit Risk Evaluation ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/Corporate_Debt_Credit_Risk_Evaluation_(August_2021).pdf |
| 5 | Rating Methodology for Mexican States. | https://www.hrratings.com/docs/metodologia/0Methodology_to_Rate_Mexican_States_(April_2021).pdf |
| 6 | U.S. State Government General Obligations Methodology Addendum ( Long Term and Short Term Global Rating Scales ). | https://www.hrratings.com/docs/metodologia/General%20Obligation%20States%20Methodology%20March%202014_final.pdf |
| 7 | Sovereign Debt Methodology ( Long Term and Short Term Global Rating Scales ). | https://www.hrratings.com/docs/metodologia/0Sovereign%20Debt%20Methodology.pdf |
| 8 | U.S. Local Government General Obligations Methodology ( Long Term and Short Term Global Rating Scales ). | https://www.hrratings.com/docs/metodologia/General%20Obligation%20Methodology%20Nov2013_final.pdf |
| 9 | Hybrid Instruments Credit Methodology ( Long Term Local Rating Scales ) | https://www.hrratings.com/docs/metodologia/Hybrid%20Instruments%20Credit%20Methodology.pdf |
| 10 | Addendum - Rating Methodology for Subordinated Debt ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/3.2.2.%20Rating%20Methodology%20for%20Subordinated%20Debt.pdf |
| 11 | Rating Methodology for Non-Bank Financial Institutions ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/Methodology_for_NBFI_February_2022.pdf |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

18

![img-5.jpeg](img-5.jpeg)

Credit  
Rating  
Agency

# Procedures and Methodologies

Exhibit 2

| 12 | Rating Methodology for Brokerage Firms ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/Rating_Methodology_for_Brokerage_Firms_August_2022.pdf |
| --- | --- | --- |
| 13 | Rating Methodology for Investment Funds ( Credit and Market Rating ). | https://www.hrratings.com/docs/metodologia/Investment%20Funds%20Methodology%202019.pdf |
| 14 | Addendum - Rating Methodology for Bonded Warehouses ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/HR290816NP%208.%20Addendum%20AGD3%20(eng).pdf |
| 15 | Partial Guarantees for Structured and Unsecure Debt Issues. | https://www.hrratings.com/docs/metodologia/Partial%20Guarantees%20Methodology.pdf |
| 16 | Water Operating Agencies: Debt Evaluation Methodology for Mexican Entities ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/Methodology_for_Water_Operating_Agencies_(August_2021).pdf |
| 17 | Special-Tax Bonds Methodology ( Long Term and Short Term Global Rating Scales ). | https://www.hrratings.com/docs/metodologia/Special-Tax%20Bonds%20Methodology%20(MP).pdf |
| 18 | Debt backed by Federal Transfers to the Municipalities Addendum ( Structured Finance Rating Scale ). | https://www.hrratings.com/docs/metodologia/Federal%20Transfers%20Backed%20Debt%20Addendum%20(Municipalities).pdf |
| 19 | Debt backed by Federal Transfers to the States ( Structured Finance Rating Scale ). | https://www.hrratings.com/docs/metodologia/Federal%20Transfers%20Backed%20Debt%20Methodology%20(States).pdf |
| 20 | Revenue Sharing Obligations for Mexican States and Municipalities: Debt Backed by Sub-National Entities Own Revenues ( Structured Finance Rating Scale ). | https://www.hrratings.com/docs/metodologia/Own-Revenues%20Backed%20Debt%20Addendum%20(States%20and%20Municipalities).pdf |
| 21 | Methodology for Rating Banks ( Long Term and Short Term Local Rating Scales ). | https://www.hrratings.com/docs/metodologia/03.2.1.%20Banks.pdf |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
 Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

19

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

3.2. Current versions of qualitative and quantitative Models

a) Banks

- Version: Nov.20
- File Name: Bancos (Entidad_Año). Nov.20
- Approved (Model): November 24, 2020.
- Methodology: Methodology for Rating Banks, February 2021.
- Approved (Methodology): December 8, 2020.
- Developed by: HR

Description: The model weights metrics that are divided into three categories: (i) profitability and operating efficiency, (ii) solvency and capitalization and (iii) liquidity. Each of these metrics uses historical information of the last eight quarters (two years) and a projection for the next eight quarters. The projection exercise is conducted for two scenarios and requires the bank's evaluated historical financial information, including the balance sheet, the income statement, and the cash flow statement. The model incorporates an environmental, social and corporate governance (ESG) analysis through the evaluation of ESG factors that HR Ratings considers as fundamental for an entity's credit quality.

b) Non-Bank Financial Institutions (IFNBs)

1. General Model for Non-Bank Financial Institutions

- Version: Dic.21
- File Names: IFNB_(Entidad_Año). Dic.21
- Approved (Model): December 2, 2021.
- Methodology: Methodology for Rating Non-Bank Financial Institutions (NBFIs), February 2022.
- Approved by HR: December 2, 2021.
- Developed by: HR

Description: The model weights metrics that are divided into three categories: (i) profitability and operating efficiency, (ii) solvency and capitalization and (iii) liquidity. Each of these metrics uses historical information of the last eight quarters (two years) and a projection for the next eight quarters. The projection exercise is conducted for two scenarios and requires the NBFI's evaluated historical financial information, including the balance sheet, the income statement, and the cash flow statement. The model incorporates an environmental, social and corporate governance (ESG) analysis through the evaluation of ESG factors that HR Ratings considers as fundamental for an entity's credit quality.

2. SOFIPOS, SOCAPs and Credit Unions

- Version: Dic.21
- File Names: UC_SOFIPOS_SOCAPS (Entidad_Año). Dic.21
- Approved (Model): December 2, 2021.
- Methodology: Methodology for Rating Non-Bank Financial Institutions (NBFIs), February 2022.
- Approved by HR: December 2, 2021.
- Developed by: HR

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

20

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

**Description:** The model weights metrics that are divided into three categories: (i) profitability and operating efficiency, (ii) solvency and capitalization and (iii) liquidity. The model introduces changes to the evaluation process to fully reflect the operational and regulatory differences applicable to these institutions. The main distinction stems from the construction used for the ICAP metric. Each of these metrics uses historical information of the last eight quarters (two years) and a projection for the next eight quarters. The projection exercise is conducted for two scenarios and requires the pawnshop's evaluated historical financial information, including the balance sheet, the income statement, and the cash flow statement. The model incorporates an environmental, social and corporate governance (ESG) analysis through the evaluation of ESG factors that HR Ratings considers as fundamental for an entity's credit quality.

3. Pawnshops

- Version: Dic.21
- File Names: Casas de Empeño (Entidad_Año).Dic.21
- Approved (Model): December 2, 2021.
- Methodology: Methodology for Rating Non-Bank Financial Institutions (NBFIs), February 2022.
- Approved by HR: December 2,2021.
- Developed by: HR

**Description:** The model weights metrics that are divided into three categories: (i) profitability and operating efficiency, (ii) solvency and capitalization and (iii) liquidity. The model introduces changes to the evaluation process to fully reflect the operational and regulatory differences applicable to these institutions. The main changes introduced in the model refer to adjustments to the delinquency ratios used to measure profitability and operating efficiency, and the introduction of the assets held in custody to net debt ratio for measuring solvency. Each of these metrics uses historical information of the last eight quarters (two years) and a projection for the next eight quarters. The projection exercise is conducted for two scenarios and requires the pawnshop's evaluated historical financial information, including the balance sheet, the income statement, and the cash flow statement. The model incorporates an environmental, social and corporate governance (ESG) analysis through the evaluation of ESG factors that HR Ratings considers as fundamental for an entity's credit quality.

c) Bonded Warehouses Model

- Version: Jul.20
- File Name: Almacenadoras (Entidad_Año).Jul.20
- Approved (Model): July 15, 2020.
- Methodology: Rating Methodology for Bonded Warehouses, March 2010.
- Approved (Methodology): March 14,2018.
- Developed by: HR

**Description:** The model explains the principal risk factors present in these entities starting from the business model. Its purpose is to justify and give a different weighting to the qualitative and quantitative risk factors for the assignment of the rating by HR Ratings. Among the most important quantitative factors to consider are the historic and projected financial statements and the analysis of the operating efficiency.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

d) Brokerage Firms Model

- Version: May.22
- File Name: Casas de Bolsa (Entidad_Año).May.22
- Approved (Model): May 18, 2022.
- Methodology: Rating Methodology for Brokerage Firms, August 2022.
- Approved (Methodology): May 18,2022.
- Developed by: HR

Description: The model weights metrics that are divided into three categories: (i) profitability and operating efficiency, (ii) market risk and (iii) capitalization. Each of these metrics uses historical information of the last eight quarters (two years) and a projection for the next eight quarters. The projection exercise is conducted for two scenarios and requires the brokerage firm's evaluated historical financial information, including the balance sheet, the income statement, and the cash flow statement. The model incorporates an environmental, social and corporate governance (ESG) analysis through the evaluation of ESG factors that HR Ratings considers as fundamental for an entity's credit quality.

e) Mutual Funds Model - SIID.

- Version: Jul.20
- File Name: Calculadora de Fondos de Inversión (Fondo_Año).Jul.20
- Approved (Model): July 15, 2020.
- Methodology: Rating Methodology for Investment Funds, May 2019.
- Approved (Methodology): February 2019.
- Developed by: HR

Description: This model has two principal aspects: Credit Risk and Market Risk. Credit Risk is based on the credit quality of the assets that form the portfolio of the mutual fund, while Market Risk measures movements in the valuation of the fund because of changes in market interest rates and other variables, such as the exchange rate, inflation, and market volatility. The methodology incorporates a secondary aspect, the evaluation of the Management Quality of the fund for both ratings.

f) Models used for Sovereign Debt

- Version: Jul.20
- File Name: Sovereign Debt (Country_Year).Jul.20
- Approved (Model): July 15, 2020.
- Methodology: Sovereign Debt Methodology, May 19, 2017.
- Approved (Methodology): March 14,2018.
- Developed by: HR

Description: The model is based upon the interaction of four analytic dimensions that represent economic growth, fiscal accounts, monetary policy, and external accounts. The model also accounts for metrics that evaluate the institutional quality of the sovereign debt. The model uses HR Ratings forecasts for both a base and a stress model. It also incorporates data from the IMF, the World Bank, and the UN.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

g) Models used for Mexican General Obligation ratings

1. States

- Version: Feb.21
- File Name: Estados (Entidad_Año).Feb.21
- Approved (Model): February 22, 2021.
- Methodology: Rating Methodology for Mexican, April 23, 2021.
- Approved (Methodology): February 23, 2021.
- Developed by: HR

Description: The HR Ratings' rating process begins with a quantitative assessment, which includes six metrics that analyze the balance sheet, the extent of the liabilities and the periodic burden of the entity's debt service. Subsequently, this methodology incorporates qualitative considerations with an environmental, social and governance (ESG) criteria; this analysis is qualitative and is limited to the assignment of up to three notches, upwards or downwards, thereby generating the credit rating of the assessed entity.

2. Municipalities

- Version: Feb.21
- File Name: Municipios (Entidad_Año).Feb.21
- Approved (Model): February 23, 2021.
- Methodology: Rating Methodology for Mexican Municipalities Public Finance Unsecured Debt, April 23, 2021.
- Approved (Methodology): February 23,2021.
- Developed by: HR

Description: The HR Ratings' rating process begins with a quantitative assessment, which includes six metrics that analyze the balance sheet, the extent of the liabilities and the periodic burden of the entity's debt service. Subsequently, the methodology incorporates a number of qualitative considerations where environmental, social and governance (ESG) criteria that impact the assessment and, therefore, the assigned rating are considered.

h) Models used for U.S. General Obligations Ratings

1. Local Governments

- Version: Nov.13
- File Name: GOLocal_Blank (Entidad_Año).Nov13
- Approved (Model): November 27, 2013.
- Methodology: U.S. Local Government General Obligations Methodology, November 27, 2013.
- Approved (Methodology): March 14,2018.
- Developed by: HR

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

23

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

**Description:** The model is based upon the General Obligation Quantitative Risk Model which accounts for the financial balance, the primary balance, debt metrics and debt servicing metrics, all as share of total revenues or unrestricted revenues. These metrics are projected for both a base and a stress scenario. The qualitative considerations account for a liquidity analysis, a general fund analysis, pensions liabilities, state regulation and support, among others.

2. States

- Version: Mar.13
- File Name: GOStates_Blank (Entidad_Año).Mar.14
- Approved (Model): March 28, 2014.
- Methodology: U.S. State Government General Obligations Methodology (Addendum to Methodology), March 28, 2014.
- Approved (Methodology): March 14,2018.
- Developed by: HR

**Description:** The model is based upon the General Obligation Quantitative Risk Model which accounts for the financial balance, the primary balance, debt metrics and debt servicing metrics, all as share of total revenues or unrestricted revenues. These metrics are projected for both a base and a stress scenario. The qualitative considerations account for a liquidity analysis, a general fund analysis, pensions liabilities, business type activities, among others.

i) Models used for Corporate Debt Ratings

1. Unsecured Corporate Debt

- Version: Jun.21
- File Name: Corporativos (Entidad_Año).Jun.21
- Approved (Model): June 10, 2021.
- Methodology: Corporate Debt Credit Risk Evaluation: Methodology for Rating Unsecured Debt and Structured Debt of Dependent Future Flows of Corporate Entities, August 6, 2021.
- Approved by HR: June 10,2021.
- Developed by: HR

**Description:** The model is based upon four metrics that are derived from the entity's financial statements. First, the DSCR derived from the entity's period flows, then the same coefficient but adding the cash reserves to the numerator. The third measures the years required for the entity to serve its debt. And the last one measures the value of their marketable assets as a percent of the entity's total liabilities. ESG considerations are incorporated with a focus on the potential impact of Environmental, Social or Corporate Governance factors over the credit quality of an entity.

2. FIBRAS (REIT's)

- Version: Jun.21
- File Name: Corporativos FIBRAS (Entidad_Año).Jun.21
- Approved (Model): June 10, 2021.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

24

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

- Methodology: Corporate Debt Credit Risk Evaluation: Methodology for Rating Unsecured Debt and Structured Debt of Dependent Future Flows of Corporate Entities, August 6, 2021.
- Approved by HR: June 10, 2021.
- Developed by: HR

Description: The model is based upon four metrics that are derived from the entity's financial statements. First the DSCR derived from the entity's period flows, then the same coefficient but adding the cash reserves to the numerator. The third measures the years required for the entity to serve its debt. The last metric used to identify the risk of acquiring assets through debt is the loan to value ratio. ESG considerations are incorporated with a focus on the potential impact of Environmental, Social or Corporate Governance factors over the credit quality of an entity.

3. Structured Debt of Dependent Future Flows

- Version: Jun.21
- File Name: Flujos Futuros Dependientes (Entidad_Año).Jun.21
- Approved (Model): June 10, 2021.
- Methodology: Corporate Debt Credit Risk Evaluation: Methodology for Rating Unsecured Debt and Structured Debt of Dependent Future Flows of Corporate Entities, August 6, 2021.
- Approved by HR: June 10, 2021.
- Developed by: HR

Description: The model is based upon three metrics that are derived from the entity's financial statements. First, the DSCR derived from the entity's period flows, then the same coefficient but adding the cash reserves to the numerator. The third measures the years required for the entity to serve its debt. The total debt and debt service used in the construction of these metrics refers only to the structured debt of the relevant entity. While the Free Cash Flow used in the evaluation is developed using the same process that applies to unsecured corporate debt, there are specific cases in which HR Ratings will use the assigned revenues for the construction of its metrics. The rating resulting from the quantitative analysis for the structured debt will be restricted to a maximum of 5 notches above the rating assigned to the issuer for issuers with a rating equal or higher than "HR BBB-". If the issuer has an assigned rating equal to or less than "HR BB+" the structured debt rating may not exceed "HR BBB-(E)". After determining the result of the quantitative evaluation with the restrictions that have been described, the model can still assign qualitative adjustments based on the credit strength or weakness of the issuer and the structured debt itself.

j) Models used for Charter Schools ratings

- Version: Feb.15
- File Name: CharterSchool (Entidad_Año).Feb.15
- Approved (Model): February 13, 2015.
- Methodology: Charter Schools Credit Risk Evaluation Methodology, February 13, 2015.
- Approved (Methodology): March 14, 2018.
- Developed by: HR

Description: The Charter Schools quantitative model is based upon the corporate debt methodology. However, the qualitative analysis accounts for the specific state laws regarding the permissions to operate

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

25

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

and the ADA (Average Daily Attendance) and the WADA (Weighted Average Daily Attendance) upon which the state transfers are conditioned.

k) Models used for Water Operating Agencies for Mexican entities

1. Unsecured Debt for Water Operating Agencies

- Version: Jul.20
- File Name: OOA (Entidad_Año). Jul.20
- Approved (Model): July 15, 2020.
- Methodology: Water Operating Agencies: Methodology for Rating Unsecured Debt and Structured Debt of Dependent Future Flows of Water Operating Agencies, August 2021.
- Approved (Methodology): June 10, 2021.
- Developed by: HR

Description: This model has two principal aspects: The operating metrics of the WOA, that measure efficiency in terms of charging customers and delivering water to residences, industrial complexes, or local businesses. The second aspect measures the financial performance of the WOA based on coverage metrics, the years that would take the free cash flow to cover the net debt and the weight of non-debt liabilities.

2. Structured Debt of Dependent Future Flows for Water Operating Agencies

- Version: Jun.21
- File Name: Flujos Dependientes OOAs (Entidad_Año). Jun.21
- Approved (Model): June 10, 2021.
- Methodology: Water Operating Agencies: Methodology for Rating Unsecured Debt and Structured Debt of Dependent Future Flows of Water Operating Agencies, August 2021.
- Approved (Methodology): June 10, 2021.
- Developed by: HR

Description: The model is based upon three metrics that are derived from the entity's financial statements. First, the DSCR derived from the entity's period flows, then the same coefficient but adding the cash reserves to the numerator. The third measures the years required for the entity to serve its debt. The total debt and debt service used in the construction of these metrics refers only to the structured debt of the relevant entity. While the Free Cash Flow used in the evaluation is developed using the same process that applies to the unsecured debt for water operating agencies, there are specific cases in which HR Ratings will use the assigned revenues for the construction of its metrics. The rating resulting from the quantitative analysis for the structured debt will be restricted to a maximum of 5 notches above the rating assigned to the issuer for issuers with a rating equal or higher than "HR BBB-". If the issuer has an assigned rating equal to or less than "HR BB+" the structured debt rating may not exceed "HR BBB-(E)". After determining the result of the quantitative evaluation with the restrictions that have been described, the model can still assign qualitative adjustments based on the credit and/or operational strength or weakness of the issuer and the structured debt itself.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

26

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

I) Models used for Ratings of Partial Guarantees

1. Infrastructure

- Version: Jul.20
- File Name: Garantías Parciales_Infraestructura (Entidad_Año).Jul.20
- Approved (Model): July 15, 2020.
- Methodology: Partial Guarantees for Structured and Unsecured Debt Issues: Debt Methodology.
- Approved (Methodology): March 2019.
- Developed by: HR

2. Unsecured

- Version: Jul.20
- File Name: Garantías Parciales_Quirografarias (Entidad_Año). Jul.20
- Approved (Model): March 2019.
- Methodology: Partial Guarantees for Structured and Unsecured Debt Issues: Debt Methodology.
- Approved (Methodology): March 2019.
- Developed by: HR

Description: For infrastructure, the partial guarantees model measures the average number of debt services that could be paid by using the guarantee, providing strength in terms of liquidity. Depending on the estimated average, certain number of notches will be awarded to the rating. For unsecured ratings, the model measures the percentage of the outstanding debt covered by the guarantee; however, the model controls for the Credit Rating of the entity providing the guarantee. According to certain values of coverage, notches will be awarded to the rating.

m) Model used for Rating Special-Tax Bonds of U.S.A. Local Entities

- Version: Jul.20
- File Name: Special-Taxes Model (Entity_Bond). Jul.20
- Approved (Model): July 15, 2020
- Methodology: Special-Tax Bonds Methodology.
- Approved Methodology: April 2020.
- Developed by: HR Ratings

Description: The model rates Special-Tax Bonds of U.S.A. Local Entities with four sets of key factors. The first one consists of an economic analysis of the elasticities of the taxed goods & services, and the concentration and strength of the tax base. The second set studies the historical performance of the trend and volatility of the pledge. The third set measures two coverage metrics and the fourth the Additional Bond Test and the Debt Service Reserve Fund requirements. Lastly, the model allows qualitative adjustments based on very specific factors and limited by concepts.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

27

HR Ratings

Credit Rating Agency

# Procedures and Methodologies

Exhibit 2

n) Models used for Mexican Structured Credit ratings.

1. States and municipalities (Federal Income)

- Version: Jul.20
- File Name: Deuda Estructurada (Entidad_Banco_Clave).Jul.20
- Approved (Model): July 23, 2020.
- Methodologies: Structured Debt of Mexican States: Federal-Transfers Backed Debt Methodology (September 2020); Structured Debt of Mexican Municipalities: Addendum to the Federal-Transfers Backed Debt Methodology (September 2020).
- Approved (Methodology): August 5, 2020.
- Developed by: HR

Description: The model is based upon the relationship of the Mexican economic growth and the revenue sharing obligations ("Ramo" 28) that the Federal Government transfers to the states and municipalities. Given an estimated income from said transfers, the minimum DSCR is determined along the debt structure. The revenues will be stressed through a TOE rate that will ultimately reduce the DSCR (always above one) in a critical period in such a way that the reserve funds can be reestablished in a previously determined post-critical period.

2. Municipalities (Own income, FEFOM)

- Version: Jul.20
- File Name: DE Programa Especial FEFOM (Entidad_Banco_Clave). Jul.20
- Approved (Model): July 23, 2020.
- Methodology: Structured Debt of Subnational Entities and OPDs: Addendum to the Own-Revenue Backed Debt Methodology (September 2020)
- Approved (Methodology): August 5, 2020.
- Developed by: HR

Description: The model is also based upon the TOE rate and the capacity of the revenues to reestablish the reserve funds in the post-critical period. However, in this methodology, the ability to successfully isolate the source of revenue from the entity through a trust fund is of major importance.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 28

**Attachment 3:** `Exhibit3.pdf`

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

### **EXHIBIT 3: POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIAL NON-PUBLIC INFORMATION**

HR Ratings' policies and procedures to prevent the misuse of material non-public information under Rule Section 15E(g) of the Exchange Act and 17 CFR 240.17g-4, are stated in our Internal Rules, which are transcribed as follows:

**A. Policies and procedures for the prevention of inappropriate dissemination within and outside the nationally recognized statistical rating organization of material nonpublic information obtained in connection with the performance of credit rating services.**

#### **I. Code of Conduct. Section V - Prevention of the misuse of non-public or confidential material information**

##### **V.1. Non-public or confidential material information.**

Non-public or confidential material information will be understood as all information received by HR Ratings from an entity, issuer or member of the same business group, or from their accountants, attorneys, or other agents, which is visibly classified by the sender as non-public or confidential, or regarding which the entity or issuer has requested HR Ratings treat it as such in writing.

Non-public or confidential material information does not include information made public through any means not attributable to HR Ratings prior to or at the time of its disclosure to HR Ratings. In addition, non-public or confidential material information will not include information for which the entity or issuer has given authorization for its dissemination or that which may be required by any authority.

The handling of and treatment given to non-public or confidential material information will be subject to that set forth in this Code, the Internal Control Manual and the non-disclosure agreements entered into between HR Ratings and the entities or issuers rated, between HR Ratings and its employees, and between HR Ratings and its suppliers who may have access to this type of information.

The General Compliance Department will be the area responsible for overseeing compliance with HR Ratings policies on the prevention of the misuse of non-public or confidential material information by the Agency's employees, management and board members, for which

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS$^{1}$

HR Ratings

Credit Rating Agency

compliance audits may be performed in accordance with the terms set forth in the Internal Control Manual.

V.2. Measures to protect non-public or confidential material information.

HR Ratings has established the following policies and mechanisms to ensure non-public or confidential material information is used solely and exclusively for the tasks of the Agency as a rating agency and to prevent the misuse of non-public or confidential material information.

V.2.1. Reception of information.

The Agency may receive confidential information by email sent to any Agency employee authorized to intervene in the matter or who has been designated to this effect in accordance with that established in the Internal Control Manual and the General Operations Plan.

V.2.2. Protection of files and non-public or confidential material information.

- All Agency employees and management who handle information provided by entities or issuers must adhere to the policies and guidelines for the handling, protection, access and safeguarding of information and files as indicated in the HR Ratings' Internal Control Manual.
- All HR Ratings employees and management will clear their desks of information at the end of the workday and whenever they are away from their desk. They will also shred any documents no longer in use.
- Agency employees are strictly prohibited from removing papers, physical files and electronic files containing non-public or confidential material information from the Agency's offices.
- HR Ratings employees are strictly forbidden from transmitting, distributing, or sending information classified for internal use outside the Agency. Information for internal use is information provided by the entities or issuers, work documents containing non-public or confidential material information, or documentation obtained or generated in the performance of their duties.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 2

HR Ratings

Credit Rating Agency

V.2.3. Access to offices.

As an additional protection measure for files and non-public or confidential material information, access to HR Ratings offices will be restricted by fingerprint recognition and visitors will be received in meeting rooms located in spaces physically separated from the Agency's operations.

II. Internal Control Manual. Section II.4 - Safeguarding Client information

Client files will be stored in an electronic folder on the Agency's HTRON and only the analysts authorized for such purposes will have access.

In addition, the working documents and other information will be stored in the protected folders on the Agency's internal server.

It is prohibited to store or hold confidential information, or any information generated, received, or delivered by HR Ratings or any employee in the exercise of its functions on the computer's hard drive or on the desktop out of the Agency's internal server.

Both the information stored on the Agency's HTRON and that stored in the electronic folders on the HR Ratings internal server will be backed up daily. The backup and custody will be executed under the strictest conditions of security and confidentiality, in adherence of the Agency's disaster prevention procedure for electronic information, which is included in the Technological Infrastructure Protocol.

The employees responsible for the security of electronic information inside the Agency will be held to the same rules of confidentiality and information handling applicable to the individuals involved in the rating process.

As a preventive measure, the people that provide the data backup and outside support services, and those that, where applicable, provide scanning services for hard copies of information received from clients will sign a non-disclosure agreement with the Agency, to ensure the proper handling of the information to which they have access.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

3

HR Ratings

Credit Rating Agency

Client files will be held for at least 5 (five) years, or the time set by the applicable law, from the date on which the rating process in question is completed and will be available to the supervisory and regulatory authorities during this time.

a. Transmission or distribution of information

Agency employees are strictly prohibited from removing any documents or electronic files containing non-public or confidential information or any information generated, received, or delivered by HR Ratings or any employee in the exercise of its functions from the offices of HR Ratings.

In addition, HR Ratings employees are strictly prohibited from transmitting, distributing, or sending information classified for internal use outside the Agency, except for communications with the Client concerned. Employees are strictly prohibited from sending information for internal use to their personal email outside the Agency.

Information for internal use is that provided by the entity or issuer or working documents containing non-public material or confidential information.

Client information will be sent solely to the person or persons the client has designated as responsible for communication with HR Ratings and must be marked confidential. The designated persons shall be updated on HTRON.

The files corresponding to the analysis reports, press releases, or rating letter will be sent to the persons authorized by the client to send and receive information, through the system the Agency defines to protect non-public material or confidential information.

Analysts will only share information for internal use within the Agency with the members of the analysis team that is overseeing the matter in question.

Both the Agency and its employees, management, shareholders, and board members are strictly prohibited from disclosing ratings prior to their release through the corresponding means indicated in the Agency's General Operation Plan.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

4

![img-1.jpeg](img-1.jpeg)

Credit  
Rating  
Agency

The Agency will release to the public through its webpage the ratings given on securities registered, or to be registered, in the national securities register, and the ratifications, amendments and/or cancellations of these ratings.

The ratings assigned by the Credit Analysis Committee will only be provided to the entity or issuer prior to being released through the corresponding media as outlined in the General Operation Plan. Ratings requested by a third party involving the use of private information will be provided to the third party, applying the policies and procedure contained in the General Operation Plan of the Agency.

As part of the control measures to prevent the misuse of non-public material or confidential information or any information generated, received, or delivered by HR Ratings or any employee in the exercise of its functions, the computers of HR Ratings employees will be blocked from extracting information and introducing information via portable storage devices, such as removable hard drives, CDs, USBs, etc.

In the event any information contained on the Agency’s internal server is required to be extracted to be stored on a portable device, or the extraction of information contained on a portable device to be introduced into the internal server, the IT Department will be asked to intervene and perform this action using a computer thusly enabled. The IT Department may place the information extracted from a portable device on the internal server, after performing a security check.

Any extraction of information from the internal server or introduction of information into the server will be duly documented in an information input/output log, indicating the name of the person, the type of file and information, and the date of the extraction (download) or introduction (upload). The General Compliance Department may audit these activities.

In addition, the Agency will have a firewall in place to block access to personal email accounts by employees via public websites, therefore employees will only have access to the Agency’s email.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 5

HR Ratings

Credit Rating Agency

The General Compliance Department may conduct audits of the IT infrastructure to verify the firewall and blocking for the extraction of information on the Agency's computers are working correctly.

a.1 Principles for the use of social networks

Information posted on corporate and personal social networks circulates freely in seconds. The publication of wrong, offensive, or defamatory information or simply a word or comment misspoken could have grave consequences for the corporate image and reputation of HR Ratings. Therefore, all employees shall follow the following guidelines:

- Employees are strictly prohibited from taking pictures or video inside de Agency or at HR Rating events to be posted on social networks.
- All your opinions should be separated from those of HR Ratings.
- Do not share confidential information of HR Ratings, its clients, or suppliers.
- Do not ever use the logos or trademarks of HR Ratings without prior written authorization.
- It is prohibited to be rude with your audience.
- Do not ever publish something that can be interpreted as a threat, discrimination, or intimidation towards any HR Ratings colleague.
- Be careful with your spelling.
- Treat your coworkers with respect.
- Before making a comment think about how you would express yourself in front of an audience or in a meeting.
- You are responsible for all your comments and posts.

b. Sending information to the financial authorities

Only the persons authorized by the supervisory and regulatory authorities corresponding will be permitted to send information via the electronic receiving systems of these authorities. In addition, said responsibility may be delegated internally to other Agency employees.

The codes the financial authorities provide to the Agency to access the electronic systems will only be known to and used by the persons designated internally to send information, therefore

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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such persons are obliged to not reveal these codes to third parties and will be responsible for any improper use of same.

**B. Policies and procedures to prevent any person within the nationally recognized statistical rating organization from purchasing, selling, or otherwise benefiting from any transaction in securities or money market instruments when the person is aware of material nonpublic information obtained in connection with the performance of credit rating services that affect the securities or money market instruments.**

**I. Code of Conduct. Section VII “Conflicts of interest” - VII.2 “Measures to eliminate conflicts of interest” - VII.2.3 “Securities Transactions”.**

*VII.2.3. Securities Transactions*

1. “Securities Transactions” are those entered into directly or indirectly for:

a) Securities registered in the National Securities Register (the “Register”). Securities are shares, interests, obligations, bonds, options, certificates, promissory notes, bills of exchange, and other negotiable instruments, registered by name or not, that can be traded on the securities markets, are issued in series or in a single offering and represent the capital stock of an entity, a proportional part of an asset, or interest in a collective loan or any individual credit right pursuant to the terms of applicable local and foreign laws.

b) Certificates of deposit, commonly known as American Depositary Receipts (“ADRs”) or similar instruments on foreign markets, representing the Securities mentioned in the previous point, or similar or analogous instruments.

c) Derivative financial instruments as long as their underlying assets are registered Securities.

d) Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.

2. The following investments are not considered Securities Transactions:

a) Shares in investment funds.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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b) Securities issued by any sovereign entity.

c) Indexed trust stock certificates (representing rights for securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters).

d) Certificates referring to a group or basket of shares or price indexes.

The following persons are prohibited from operating or maintaining Securities Transactions involving any entity or issuer that is a client of HR Ratings:

- HR Ratings, as a legal entity;
- Analysts that participate in the rating process of the entity or issuer;
- Members of the Credit Analysis Committee that participate in the rating of the entity or issuer, and
- Persons who, as a result of their duties, may have access to privileged information, per the terms of section VII.2.4 of the Code of Conduct.

All new Agency employees and board members will submit, on their entry or appointment date, a statement of the Securities Transactions they hold directly or indirectly in any entity or issuer; and also those of their spouse, partner, or dependent minors using the form in Appendix 1 “Report on Securities Transactions” of this Code.

In addition, all Agency board members and employees who perform a Securities Transaction of any entity or issuer must notify the Compliance Department using the form in Appendix 1 “Report on Securities Transactions” of this Code within a period of 10 (ten) business days following the Transaction in question.

Notwithstanding, all Agency employees and board members must complete and submit Appendix 1 “Report on Securities Transactions” every 6 (six) months. The semiannual endorsement shall indicate all securities transactions performed by the employee or board member to date, regardless of whether these have been previously reported.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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For the purposes of reporting bank securities representing a debt equal to or less than one year serviced by a credit institution, the renewable securities must be reported only once, indicating this in the report.

The securities transactions report must be submitted together with the corresponding bank or securities account statement, dated no more than 3 (three) months prior to submission, in which said operations are indicated. Employees and board members have the right to challenge information not relevant to the reported transaction.

HR Ratings, through the Compliance Department, shall take all necessary measures to ensure that Securities Transactions by members of the Board of Directors, management, technical personnel responsible for the preparation of reports and providing follow up on the credit quality of securities or Agency customers and employees in general do not generate conflicts of interest.

In order to fulfill this objective, HR Ratings will maintain a list of the entities or issuers rated by HR Ratings and which are public (the “Public Ratings List”) in HTRON. All Agency employees and board members will have access to this list.

In addition, the Agency will maintain a list of entities or issuers who request the rating to be private or whose initial rating process has been completed but not yet published (the “Private Ratings List”), to which only the Agency’s General Management, the Compliance and Operations Department, the Business Development Department personnel, analysis managers and members of the Board of Directors will have access.

Both lists will be maintained up-to-date in the Agency’s HTRON to verify that there are no conflicts of interest in the rating process derived from securities transactions in entities or issuers rated by HR Ratings held by employees and directors, as well as those of their spouses, common-law spouses or minor children. .

The limitations on Securities Transactions set forth in this section and the disclosure of these will apply equally to Transactions by the spouse, partner, or dependent minors of analysis managers or technical personnel involved in the rating process.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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For the purposes of that set forth in the previous paragraph, HR Ratings employees, managers and board members will make every effort to be informed of securities transactions performed by their spouse, partner and/or dependent minors. No bank or securities account statement will be required for these transactions.

VII.2.4. Use of privileged information

For the purposes of this section, a relevant event is any fact, act, or occurrence, of any nature, which could or would influence the prices of registered securities.

HR Ratings board members, managers and employees are strictly forbidden to:

- Obtain any benefit from any Securities Transaction performed using privileged information obtained from their participation in the rating process for these securities, or in the performance of their duties.
- Provide or transmit privileged information to other persons, being required to comply with that established in the HR Ratings Internal Control Manual for the handling of non-public or confidential information.
- Issuing recommendations regarding any securities or negotiable instruments for which the price or quote could be influenced by the use of privileged information.

Privileged information is knowledge of relevant events not disclosed to the public by an issuer through the market on which their securities are traded.

It is not necessary for the person to be aware of all details concerning the relevant event for this to be considered privileged information, it is sufficient that the information to which they have access could influence the price or quote of an issuer's securities.

The Compliance Department will be responsible for monitoring policies on securities transactions and the use of privileged information.

Any improper use of privileged information shall be considered a serious breach to be sanctioned in accordance with the criteria established in Appendix 11 "Criteria for determining the severity of violations of Company Rules" of the Code of Conduct.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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HR Ratings

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**C. Policies and procedures that prevent the inappropriate dissemination within and outside the nationally recognized statistical rating organization of a pending credit rating action before issuing the credit rating on the Internet or through another readily accessible means.**

**I. Code of Conduct. Section VI. “Transparency and disclosure of information”.**

**VI.1 Transparency**

1. HR Ratings will take the following measures to guarantee the transparency of its activities:

- ○ Inform entities and issuers, prior to the signing of the service contract and through the Business Development Department, of the current rates or fees for the provision of its rating service. In addition, HR Ratings will inform entities and issuers through this same department of adjustments made to annual maintenance fees prior to the payment date for the annual renewal.
- ○ Prior to the publication of a rating or amendments, whenever feasible, HR Ratings will provide the entity or issuer with all relevant information as well as the principle factors considered in the assigning of a rating. HR Ratings will also consider any clarification made by the entity or issuer that would result in a more accurate rating in accordance with the procedure established in the Agency’s General Operations Plan. Under no circumstances will HR Ratings offer additional services or renegotiate any clause in the service contract as a result of the clarification procedure outlined here.

HR Ratings may publish a rating, or an amended rating, without previously informing the entity or issuer rated in the event of any circumstance that would directly affect the rating and of which market participants should be informed immediately, given the material impact the event could have on their perspective of the corresponding entity, issuer, or transaction.

If HR Ratings fails to deliver to the entity or issuer rated the analysis report or press release prior to the publication of a rating, HR Ratings must do so immediately after the publication and provide details of the reasons for the delay.

- ○ The press release announcing the rating shall include the items indicated in the Agency’s General Operations Plan as well as those in the Provisions and in local regulations applicable to HR Ratings. This shall be written in clear and easily understood language.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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- ○ If HR Ratings has received revenues from issuers or entities for items that are not included in the service provided for the rating of securities, HR Ratings will indicate the portion such revenue represents in relation to the aggregate revenues earned by each entity or issuer as a result of their main activity.
- ○ Upon publication of a rating, HR Ratings will not disclose any non-public or confidential material information pertaining to the entity or issuer, in accordance with their instructions.
- ○ Ratings not required for securities offerings may be kept private until said entity or issuer requests their publication. The assigned rating may be published without convening the Credit Analysis Committee to agree on this publication, unless additional information has been provided or there are new elements that may have an impact on the rating assigned.
2. The obligation to publish initial ratings for possible securities offerings applies only in the countries where this is required by law.
3. Inappropriate dissemination within and outside HR Ratings of a pending rating action before publication of the credit rating on the Internet or through another readily accessible means is strictly prohibited.
4. HR Ratings will publish the following information on its website free of charge and non-selectively:
- ○ Press releases for assigned ratings, amendments of these ratings, or the withdrawal of ratings, as well as decisions to suspend the follow-up for a rating and the reasons for such action. The foregoing with the exception of private ratings which shall be sent solely to the requesting entity or issuer. Press releases will be available on the Agency website for a period of at least 12 (twelve) months from their date of publication.

In addition, HR Ratings will issue a press release if an entity decides to rescind their service contract when it is known that this rescission was in response to a rating downgrade. This will be issued on the business day following rescission.
- ○ Historical information on annual default rates for each of the rating categories and transition matrices across assigned ratings.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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- ○ Methodologies used for the rating of entities, issuers and/or issues, and any substantial amendment of these documents and the rating process.
- ○ In the case of amendments to the rating methodologies and procedure, the reason or justification of said amendments will be indicated and they will be analyzed to determine whether they could result in changes to any current rating.
- ○ Notice of the existence of any significant error identified in any procedure or methodology that could result in any change to a current rating.
- ○ Comments received from the market, in general, through the HR Ratings' website, regarding new methodologies or amendments to methodologies as well as comments related to a current methodology and the corrective action taken.

The Agency will maintain publicly the comments received regarding the draft for a new methodology or amendment of a methodology for a minimum of 10 (ten) calendar days from the date the corresponding draft is published.

Comments received regarding a current methodology will be maintained on the Agency's website until the methodology in question is amended and the draft is published to receive new comments from the market.

- ○ The follow-up processes for a rating, the frequency of reviews, and also the criteria for the withdrawal or suspension of a rating.
- ○ The structure and voting process for the committees that determine the ratings and their follow-up, if applicable.
- ○ Scales, nomenclatures and their definitions, and the definition of default as agreed by the Methodology Committee.
- ○ A list of ratings assigned to each entity or issuer from the date of the initial rating action. The foregoing provided the rating has been amended.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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- ○ The Code of Conduct and its amendments, within a period of 2 (two) business days following the date they have been approved by the competent authority for such purposes.
- ○ Contact information for:
  - ☐ Any question from any market participant regarding the rating methodologies.
  - ☐ Any question from any market participant regarding the Agency's internal regulations.
  - ☐ Development of business and entities or issuers.
- ○ The annual report, approved by the Board of Directors, containing relevant information on the activities of HR Ratings, its structure, the number of ratings assigned, changes to the Agency's policies, procedures, and other relevant items during the corresponding year. The report will be released the same day it is submitted to the CNBV.
- ○ The powers of the Board of Directors and independent board members, as well as the number of independent board members serving the Agency, including the statement explaining that these board members do not fall within any of the categories indicated in sections I to V of article 26 of the Securities Market Act.
- ○ Initial ratings, as well as changes, amendments, or cancellations of ratings, on the date they are issued.
- ○ A history of ratings assigned for each entity, issuer, securities or instruments rated by HR Ratings. Such historical information shall include the requirements established for such purposes in **Appendix F "Report and/or Press Release"** of the General Operations Plan.
- ○ Where applicable, and pursuant to applicable regulations, the Form ABS Due Diligence 15-E.

***

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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# APPENDIX 1

# Report on Securities Transactions

HR Ratings Chief Compliance Officer

To comply with the obligation set forth in Section VII.2.3 of the Code of Conduct “Securities Transactions”, I report below the Securities Transactions the undersigned operates as of this date and those my spouse, partner and/or dependent minors operate, involving issuers, or entities rated by HR Ratings:

☐ I have no securities transactions to report
☐ I have the following securities transactions to report:

Securities transactions held by the undersigned

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term equivalent to or less than a year. | Total transaction amount and, if applicable, term and rate | Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

Securities Transactions held by my spouse, partner and/or dependent minors

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term of one year or less | Total transaction amount and, if applicable, term and rate | Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

I declare I am familiar with the guidelines, policies and control mechanisms on Securities Transactions and the use of Privileged Information indicated in the HR Ratings Code of Conduct and I authorize HR Ratings to investigate, at its discretion, any potential conflict of interest.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

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I also authorize HR Ratings to disclose the information in this report to the Agency's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Name of employee or board member, position and signature)

Instructions:

(i) This form must be completed by all new hires of HR Ratings.
(ii) This form must be completed by all employees, managers, or analysts who operate Securities Transactions with any entity or company rated by HR Ratings within 10 (ten) business days of performing the transaction.
(iii) This form must be completed by analysis personnel whose spouse, partner or dependent minor(s) have performed a Securities Transaction with any entity or company rated by HR Ratings.
(iv) This form must be completed by all HR Ratings employees, board members, and managers every 6 (six) months, indicating the securities transactions performed.
(v) Securities Transactions are those performed directly or indirectly involving:
a) Securities registered with the National Securities Registry.
b) Certificates of deposit, commonly known as American Depositary Receipts (ADRs) or similar instruments on foreign markets, representing the Securities mentioned in the previous point or similar or analogous instruments.
c) Derivative financial instruments provided their underlying assets are registered with the National Securities Registry.
d) Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.
(vi) The following investments are not considered Securities Transactions:
a) Shares in mutual funds.
b) Securities issued by the federal government.
c) Indexed trust certificates (representing rights on securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters)
d) Certificates referring to a group or basket of shares or price indexes.
(vii) Term renewable certificates for bank securities representing debt on a term equal to or less than one year serviced by a credit institution rated by HR Ratings must be reported only once, indicating this characteristic in the report.
(viii) An indirect transaction is one operated by an HR Ratings employee or board member through a company in which the employee or board member holds control in accordance with the terms of article 2 of the Securities Market Act.
(ix) A monthly account statement should be attached, dated no more than 3 (three) months prior to the present date, issued by the financial broker indicating the securities transaction.
(x) If neither you nor your spouse, partner, or dependent minor(s) have performed Securities Transactions with entities or issuers rated by HR Ratings, please indicate "Do not have" or "not applicable".

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 16

HR Ratings

Credit Rating Agency

# APPENDIX 11

Criteria for determining the severity of violations of company rules

# Types of violations or non-compliance

- Of policies on Independence and Conflicts of Interest
- Of policies to prevent the misuse of Non-Public, Confidential, or Privileged Information
- Of policies included in the Manuals in general

# Sanction according to the severity of the fault or violation

| Severity | Sanction |
| --- | --- |
| Minor | Verbal warning |
| Moderate | Written warning |
| Serious | Suspension |
| Very serious | Dismissal |

The following criteria will be considered when determining the severity of the violation or non-compliance:

| Criteria | Severity |
| --- | --- |
| Sexual harassment | Very serious |
| There was intent (the person knowingly acted with the intention of committing a violation) | Very serious |
| There was personal gain or benefit for a third party | Very serious |
| The Agency's image or equity was damaged | Serious or Very serious |
| A rating was affected | Serious |
| The violation was covered up | Moderate or Serious |
| Recommendations were not followed | Moderate or Serious |
| Recurrence | Moderate or Serious |
| First offense | Minor |
| Error without consequences | Minor |

Note: The sanction may be reduced if the offender accepts, they committed the violation and makes amends.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

17

**Attachment 4:** `Exhibit4.pdf`

HR Ratings®

Credit
Rating
Agency

# Ownership Structure

# HR Ratings
Ownership structure

![img-0.jpeg](img-0.jpeg)

1

![img-1.jpeg](img-1.jpeg)

FR
GREECE
Credit
Rating
Agency

**Attachment 5:** `Exhibit5c-1.pdf`

I, Dr. TIMOTHY JOHN HAVARD (WITH ADDRESS AT INSURGENTES SUR 1228, PISO 3, COL. TLACOQUEMÉCATL DEL VALLE 03200, MEXICO CITY, TEL. 55-5604-9357), OFFICIAL EXPERT TRANSLATOR WITH FOLIO P.109-2019 AUTHORIZED BEFORE THE FEDERAL JUDICIAL AUTHORITIES FOR THE YEAR TWO THOUSAND TWENTY-THREE FOR THE FIRST CIRCUIT [MEXICO CITY] PURSUANT TO ARTICLE 86, PARAGRAPH XXIX, OF THE FEDERAL JUDICIAL ORGANIZATION ACT, AS WELL AS NUMERAL 7 OF THE GENERAL AGREEMENT OF THE FULL FEDERAL JUDICIAL COUNCIL THAT REGULATES THE LIST OF PERSONS WHO CAN ACT AS EXPERTS BEFORE THE FEDERAL JUDICIAL AUTHORITIES, PUBLISHED IN THE OFFICIAL GOVERNMENT GAZETTE (DOF) ON DECEMBER 14, 2022 [https://www.dof.gob.mx/2022/CJF/listado_peritos_PJF_2023.pdf, P.260], DO HEREBY CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE, ABILITY AND UNDERSTANDING, THE ATTACHED TRANSLATION IS A TRUE, CORRECT AND COMPLETE TRANSLATION INTO ENGLISH CONSISTING OF 73 PAGE(S) OF THE ORIGINAL DOCUMENTS IN SPANISH.

CERTIFIED ON January 25, 2023

**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

**TRANSLATION FROM SPANISH**

# Code of Conduct

October, 20221

This Manual is the exclusive property
of HR Ratings de México, S.A. de C.V.

1 Amendments and/or additions to this Code of Conduct with respect to the November 2021 version will come into effect on January 19, 2023.

Code of Conduct

[1]

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# CONTENTS

I. Purpose 4
II. General principles 5
III. Quality in the provision of rating services 6
IV. Complaints 13
V. Prevention of the misuse of non-public or confidential material information 16

V.1 Non-public or confidential material information 16
V.2 Measures to protect non-public or confidential material information 17

V.2.1 Reception of information 17
V.2.2 Protection of files and non-public or confidential material information 17
V.2.3 Access to offices 18

VI. Transparency and disclosure of information... 18

VI.1 Transparency 18
VI.2 Dissemination of information 23
VI.3 Communication with the media 23
VI.4 Rumors 24

VII. Conflicts of interest ... 24

VII.1 Identifying conflicts of interest 25
VII.2 Measures to eliminate conflicts of interest 26

VII.2.1 Objectivity, Independence and integrity 26
VII.2.2 Separation of functions 29
VII.2.3 Securities Transactions 31
VII.2.4 Use of privileged information 34
VII.2.5 Loans, credits, acquisition of goods, services and yields 35
VII.2.6 Gifts, entertainment and preferential treatment 36
VII.2.7 Post-employment activities of management and technical personnel 38
VII.2.8 Selection of Service Providers 41
VII.2.9 Secure Web Site - 17g-5 CFR SEC Rule 41

VII.3 Disclosing conflicts of interest 43
VII.4 Handling conflicts of interest 44

VIII. Technical quality and good character... 46

Code of Conduct

[2]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

IX. Outside activities 47
X. Conduct 48

X.1 Professional conduct 48
X.2 Respect 49
X.3 Use of illegal substances 50
X.4 Use of email, the internet, telephone and other electronic means of communication 51
X.5 Use of Social Networks 53

XI. Material violations of the law 53
XII. Applicable Sanctions 54
XIII. APPENDIXES 57

APPENDIX 1 57
APPENDIX 2 59
APPENDIX 3 60
APPENDIX 4 61
APPENDIX 5 62
APPENDIX 6 63
APPENDIX 7 64
APPENDIX 8 66
APPENDIX 9 67
APPENDIX 10. 68
APPENDIX 11. 69
APPENDIX 12. 70
APPENDIX 13. 72

Code of Conduct

[3]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# I. Purpose

This manual sets the minimum standards of conduct and professional practice for all employees, management, shareholders and board members of HR Ratings de México, S.A. de C.V. and its affiliates, subsidiaries, representative offices, and branches established in any country ("HR Ratings" or the "Agency", indistinctly), to ensure that all such persons comply with the highest standards of ethics, justice, honesty, integrity and objectivity in their relationships both within and outside the Agency (the "Code").

This Code is based on the Fundamental Principles of Conduct for Ratings Agencies, published by the International Organization of Securities Commissions ("IOSCO"), which indicates international principles to ensure the transparency and reliability of the rating process. It is also based on the guidelines set by Mexico's National Banking and Securities Commission ("CNBV") in the Provisions applicable to Securities Rating Agencies (the "Provisions") and other provisions applicable in those countries where HR Ratings operates.

It is the responsibility of the employees, officers, directors, and shareholders of the company to read this Code carefully in order to understand its contents. For these purposes, they should sign an electronic copy of this Code, which will be endorsed every 6 (six) months or upon any modification thereof.

Any violation of the guidelines included in this Code will be evaluated to determine the gravity of the same and the corresponding sanctions, which range from verbal or written warnings to dismissal.

HR Ratings will not, under any circumstance, make any exceptions to any of the provisions and policies included in this Code.

Code of Conduct

[4]

Page 4 / 73

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

## II. General principles

A fundamental principal of HR Ratings is the performance of its activities in strict observance of the law and other applicable regulations, in accordance with sound market practices and to the highest standards of justice, honesty, integrity, transparency and objectivity.

HR Ratings operations are governed by this Code, the Internal Control Manual, the General Operations Plan, the Human and Material Resources Manual, the Administrative Protocol and the Technological Infrastructure Protocol (jointly, the "Internal Rules"), and also by the Agency's rating methodologies and regulations applicable to securities rating agencies.

The Agency's Internal Rules are prepared and approved by the Agency's Regulations Committee and approved by the Board of Directors.

HR Ratings permanently posts this Code for the public on its website free of charge, with amendments to the Code requiring approval by the Agency's Board of Directors. HR Ratings will publish any amendments to the Code by this same means.

The Compliance Department is responsible for overseeing compliance with the Internal Rules and other regulations applicable to HR Ratings in its capacity as a securities rating agency, by the Agency itself, its shareholders, board members, management and other employees.

The Compliance Department will conduct reviews of HR Ratings operative employees at least once a year to verify their knowledge of the Internal Rules and the regulations applicable to HR Ratings as a rating agency.

Logistics staff, director's assistants, receptionists, as well as cleaning and maintenance staff are not required to participate in this review.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

### III. Quality in the provision of rating services

HR Ratings will take the following actions to ensure the quality of the service provided to the issuer or entity that requests or is subject to rating before and during the rating process in accordance with sound market practices and uses.

Internal policies outlined in the General Operations Plan will be observed when the rating has been requested by a third party other than the entity or issuer to be rated. All HR Ratings de México ratings will be under contract or agreement in accordance with the Provisions.

HR Ratings may issue unsolicited ratings, for which the Agency will receive no payment. HR Ratings may sign a confidentiality agreement (Non-Disclosure agreement or "NDA") with the entity rated, as may be required by applicable law. Unsolicited ratings will be prepared using the same methodologies as requested ratings and will follow the same rating process, as applicable. HR Ratings will monitor unsolicited ratings and may withdraw these ratings at any time.

Prior to provision of the service, HR Ratings will provide the entity, through the Business Development Department: (i) this Code; (ii) the Agency's methodologies and rating scales, with the indication that both these documents and the Code are available for consultation on the HR Ratings website; and (iii) the rates or fees charged by the Agency for the provision of its services.

HR Ratings will provide the entity or issuer with a detailed explanation of the methodologies to be used during the rating process in question and will receive any questions or comments the entity may have in this regard at any time during the rating process through the Analysis Department or the Head of the corresponding Department.

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[6]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

The Agency, through the Compliance Department, will respond in detail to any concern the entity or issuer may have regarding the application or interpretation of this Code on request from the entity or issuer.

HR Ratings will inform the entity, through the service contract, of the manner and frequency the entity or issuer will be expected to deliver the information necessary for the Agency to perform the corresponding analysis and assign a rating.

HR Ratings will perform the analysis for the assignment of a rating based on the information provided by the entity and on available public information. This analysis will be in strict adherence to the methodologies and models reviewed and agreed by the Agency's Methodology Committee, with approval by the Board of Directors, and the rating procedure indicated in the Agency's General Operations Plan.

If the corresponding analysis should deviate from the rating methodologies this will be expressed in a technical note explaining the reasons for the deviation which will be presented to the Agency's Methodologies Committee in accordance with the General Operations Plan. This note will be added to the Agency's file for the entity.

When the Business Development Department receives a request to rate entities, issuers or operations that are significantly different from those usually rated by HR Ratings, or in the case of atypical, exotic, or special entities, offerings, or instruments, it will notify the corresponding Area Director so the Analysis and Compliance Department can analyze the feasibility of the corresponding analysis. To this effect, it must be determined whether the Agency has sufficient capacity, access to necessary information and sufficient resources to prepare this type of rating. The evaluation will be documented in a log by the Area Director. However, if this is not feasible, the rating process will be suspended, and the entity or issuer informed of the situation in accordance with the General Operations Plan.

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[7]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

HR Ratings will not consider ratings assigned by other ratings agencies for the underlying assets when said rating fails to meet the minimum requirements for use in accordance with Agency's methodology, as applicable.

HR Ratings will ensure the structure and voting process of the Credit Analysis Committee adhere to the policies and guidelines approved by the Board of Directors to this effect, as indicated in the Agency's General Operations Plan.

HR Ratings will perform, through its independent board members or the person designated by them, statistical analyses to evaluate the effectiveness of methodologies and processes used for the study, analysis, opinion, evaluation and report on the credit quality. It will also determine whether the work of the technical personnel that used the rating methodologies requires review in accordance with the General Operations Plan.

These analyses will be performed annually at minimum in accordance with the following:

- Information from the Agency's internal electronic system ("HTRON") will be used for the provision of ratings services.
- Transition matrices will be prepared based on information from HTRON. These are tools used to evaluate the performance and stability of ratings the Agency assigns. HR Ratings expects its ratings to be stable over time with a low probability of significant change in the short term. The transition matrices are therefore effective tools for verifying the quality and effectiveness of the rating methodologies used by the Agency for determining whether the work of the technical personnel that used the rating methodologies requires review. In addition, transition matrices are used to verify that the relative degree of risk assigned to the Agency's ratings is unified for different types of assets.

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[8]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- • Transition matrices are prepared in accordance with the General Operations Plan and the special requirements outlined in the regulations for the country where HR Ratings is authorized, recognized, or certified to operate as a ratings agency.
- • Transition matrices are published annually on the Agency's website for consultation by the market and are available to any person requesting them in writing from HR Ratings.
- • The Agency reviews its rating methodologies and models at least once a year or when any of the following circumstances necessitates adjustment of these methodologies and models:
  - ○ Due to the results of statistical analyses prepared by independent board members or the person delegated this task concerning rating methodologies.
  - ○ When amendments to the regulations applicable to rating agencies, or the regulations to which the issuers, entities, or operations rated by the Agency are subject, affect the Agency's rating methodologies or models.
  - ○ When in practice the suitability of the processes and terms established in any rating methodology or model require clarification.
  - ○ When relevant comments received from market participants regarding the Agency's current methodologies are received through the HR Ratings website or any other means of communication.

The ratings methodologies and models will be reviewed at a meeting of the HR Ratings Methodology Committee. The Committee will evaluate the factors that could result in an amendment and, if applicable, propose the relevant amendments which will be documented in the corresponding minutes.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

The methodologies and models for rating asset-backed securities will be reviewed at least once a year to ensure they remain appropriate in the event of any relevant changes in the risk associated with these assets.

Once the Methodology Committee has issued its opinion on any amendment or addition to the rating methodologies and models, the Committee will analyze whether the ratings assigned under the previous methodology and model should be reviewed.

Amendments or additions agreed by the Methodology Committee will be submitted for the consideration and approval of the Board of Directors, taking into consideration the methodological procedure indicated in the section "Process for the Development and Amendment of Methodologies" of the HR Ratings General Operations Plan. The documents and information used to approve the methodologies and models must use, for its identification, the filing date, name of the model or methodology, document it replaces, if applicable, and any other data considered relevant.

Once the amendments or additions to a methodology have been published, the Agency will use the new methodology for subsequent ratings and inform the public of the potential effects of the new methodology on ratings once the review process has been completed. If necessary, HR Ratings will issue a new rating for the instruments in question within a period of 6 (six) months from when the new methodology comes into effect. HR Ratings must refrain from reviewing and, if applicable, assigning a new rating if analysis indicates that the change in methodology or model does not affect the previously assigned rating.

HR Ratings will refrain from engaging in the following practices:

- Conditioning a rating or its amendment on the entity or issuer, or persons who are members of the same business group, purchasing or contracting any other product or service offered by HR Ratings including services related to the assignment of preliminary ratings.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- Ensuring or guaranteeing, implicitly or explicitly, a rating determined prior to the completion of the corresponding analysis by the Credit Analysis Committee and publication of the official rating.
- In the case of ABST US Ratings (as such term is defined below), where HR Ratings has not determined the rating securities or money market instruments issued by an asset pool, or as part of any asset-backed securities transaction, HR Ratings shall be prohibited from issuing or threatening to issue a lower credit rating, lowering or threatening to lower an existing credit rating, refusing to issue a credit rating, or withdrawing or threatening to withdraw a credit rating, with respect to such issued securities or money market instruments.

HR Ratings shall conduct the following practices:

- Clearly indicate on all documents made public, such as analysis reports, press releases and rating letters, that ratings are opinions issued in the name of the Agency and not the Agency's management or technical personnel; that they are not recommendations to buy, sell, or hold any instrument or to invest or conduct any type of business; that they may be subject to adjustment at any time and are based solely on the characteristics of the entity, issuance and/or operation, independent of any business activity between the ratings agency and the entity or company. The preceding is on the understanding that HR Ratings bases its ratings and/or opinions on information taken from sources considered accurate and reliable. However, HR Ratings does not validate, guarantee, or certify the precision, accuracy, or completeness of any information. Consequently, HR Ratings is not responsible for any error or omission in said information or, if it is incorrect or inaccurate, for the results obtained when using this information.
- Monitor its ratings monthly, quarterly, or semiannually, depending on the type of entity, issuer, operation, or instrument and will also perform an annual review, as provided for in the Agency's General Operations Plan and in accordance with the terms established in the service agreement entered into with the entity or issuer. The only exceptions to the above are those cases for which, at the time the rating is published, the Agency clearly and emphatically indicates it will not provide future updates.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- Ratings will be reviewed in strict adherence to rating methodologies and models, as well as the procedure established in the Agency's General Operations Plan and other Internal Rules.
- Maintain open communication with market participants through the person(s) designated by the Board of Directors to this effect for the receipt and response to questions, suggestions, or complaints that may be raised with the Board of Directors for improvements to the design and suitability of HR Ratings policies.
- HR Ratings will definitively suspend the rating procedure in the following cases:
  a) When the complexity of an asset-backed security or a lack of historical information for the underlying assets would affect the credibility of the rating.
  b) When the entity fails to provide the minimum information requested by the Agency in the form and within the term requested for such purposes.
  c) When there is pressure from any entity that would preclude the analysis team from performing its work objectively and independently.
- Structure its analysis team to ensure the continuity of each team member in their respective functions and thereby guarantee fairness in the rating process.
- Maintain guidelines and policies for the rotation of committee members or analysts responsible for rating procedures, as well as for the gradual introduction of successors on these committees or technical personnel for the same entity or issuer and will establish maximum periods of service in each area of responsibility. These guidelines are set forth in the General Operations Plan and are approved by the Agency's Board of Directors.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- Regarding asset-backed securities, HR Ratings will prepare a document explaining the reasons for the differences between the results of the quantitative models used and the rating assigned by the rating agency for the corresponding Security. This document must be retained for a period of 5 (five) years.
- HR Ratings will differentiate the ratings of asset-backed securities from ratings related to traditional corporate bonds, preferably by means of a different rating symbology, and explain the meaning of said difference. In addition, HR Ratings must clearly define a specific rating symbol and apply it consistently for all securities it is assigned.
- HR Ratings will not be able to establish or imply that it is a securities rating agency recommended, approved, designated and/or endorsed by the United States of America and/or any federal agency of the government of that country.

**IV. Complaints**

The HR Ratings' complaints procedure will be as follows:

1. For the purposes of this section, the term "complaint" will be understood as any communication received from the persons who have signed a service contract with HR Ratings, users of the ratings the Agency assigns, HR Ratings personnel and the general public with respect to the following:

The ratings assigned by the Agency and the performance of the technical personnel responsible for preparing and monitoring credit quality reports, including adherence to the rating methodologies used during the rating process, including the commencement, determination, maintenance, surveillance, adjustment, or withdrawal of the rating.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

a) The Agency's rating methodologies and models.
b) Compliance by HR Ratings or any HR Ratings employee with regulations applicable to rating agencies in Mexico, the United States, or any other country or region where HR Ratings is registered, authorized, recognized, or certified to operate as a rating agency.
c) Compliance by HR Ratings or any HR Ratings employee with the Agency's internal policies and procedures.

* Opinions regarding HR Ratings activities that are not related to the determination, monitoring, modification, maintenance or withdrawal of a rating shall not be considered a complaint.

2. Complaints may be presented through the section "Contact" /Subject: Complaints" on the HR Ratings website, www.hrratings.com, indicating the name of the complainant, their email address, the company they represent and the subject of the complaint. In addition, complaints may be presented anonymously, through the section "Contact", choosing the option "Anonymous Complaints" on the website, providing only the details of the complaint.
3. Complaints may also be presented in writing to the HR Ratings Compliance Department at the following address: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, or by phone to the Compliance Department at (+52) 55 15 00 31 30.
4. HR Ratings employees who by any means, whether verbal or written, receive a complaint from a third party, will forward said complaint to the Compliance Department by email to: compliance@hrratings.com.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

5. HR Ratings employees will notify the Compliance Department by email when they learn of any complaint against the Agency, or its employees received from a third party or mentioned in any newspaper, newscast, or any other mass media.

6. HR Ratings employees will seek clarification from the Compliance Department if they have any doubt as to whether communication received from an entity, issuer or media constitutes a complaint in the terms indicated in this section.

7. The Agency will have a log for the control of and follow-up on complaints. Complaints will be analyzed and resolved by the Compliance Department.

8. HR Ratings will analyze all complaints received and will take all internal measures established to solve them and avoid any recurrence.

9. The Compliance Department will respond to complaints where contact information has been provided within a period of 30 (thirty) business days from the date the complaint was received.

In the case of opinions or comments, the Compliance Department will determine the cases where such comments or opinions, that left contact information, require a response from HR Ratings.

10. In the case of anonymous complaints for which no contact information is provided, HR Ratings will analyze the complaint and, if applicable, take the appropriate internal measures.

11. All complaints will be documented in a follow-up and control log, along with the external or internal attention given to each of them.

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[15]

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

# **V. Prevention of the misuse of non-public or confidential material information**

# **V.1 Non-public or confidential material information**

Non-public or confidential material information will be understood as all information received by HR Ratings from an entity, issuer or member of the same business group, or from their accountants, attorneys, or other agents, which is visibly classified by the sender as non-public or confidential, or regarding which the entity or issuer has requested HR Ratings treat it as such in writing.

Non-public or confidential material information does not include information made public through any means not attributable to HR Ratings prior to or at the time of its disclosure to HR Ratings. In addition, non-public or confidential material information will not include information for which the entity or issuer has given authorization for its dissemination or that which may be required by any authority.

The handling of and treatment given to non-public or confidential material information will be subject to that set forth in this Code, the Internal Control Manual and the non-disclosure agreements entered into between HR Ratings and the entities or issuers rated, between HR Ratings and its employees, and between HR Ratings and its suppliers who may have access to this type of information.

The General Compliance Department will be the area responsible for overseeing compliance with HR Ratings policies on the prevention of the misuse of non-public or confidential material information by the Agency's employees, management and board members, for which compliance audits may be performed in accordance with the terms set forth in the Internal Control Manual.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

# V.2 Measures to protect non-public or confidential material information

HR Ratings has established the following policies and mechanisms to ensure non-public or confidential material information is used solely and exclusively for the tasks of the Agency as a rating agency and to prevent the misuse of non-public or confidential material information.

# V.2.1 Reception of information

The Agency may receive confidential information by email sent to any Agency employee authorized to intervene in the matter or who has been designated to this effect in accordance with that established in the Internal Control Manual and the General Operations Plan.

# V.2.2 Protection of files and non-public or confidential material information

- All Agency employees and management who handle information provided by entities or issuers must adhere to the policies and guidelines for the handling, protection, access and safeguarding of information and files as indicated in the HR Ratings' Internal Control Manual.
- All HR Ratings employees and management will clear their desks of information at the end of the workday and whenever they are away from their desk. They will also shred any documents no longer in use.
- Agency employees are strictly prohibited from removing papers, physical files and electronic files containing non-public or confidential material information from the Agency's offices.
- HR Ratings employees are strictly forbidden from transmitting, distributing, or sending information classified for internal use outside the Agency. Information for internal use is information provided by the entities or issuers, work documents containing non-public or

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

confidential material information, or documentation obtained or generated in the performance of their duties.

# V.2.3 Access to offices

As an additional protection measure for files and non-public or confidential material information, access to HR Ratings offices will be restricted by fingerprint recognition and visitors will be received in meeting rooms located in spaces physically separated from the Agency's operations.

# VI. Transparency and disclosure of information

# VI.1 Transparency

1. HR Ratings will take the following measures to guarantee the transparency of its activities:

- Inform entities and issuers, prior to the signing of the service contract and through the Business Development Department, of the current rates or fees for the provision of its rating service. In addition, HR Ratings will inform entities and issuers through this same department of adjustments made to annual maintenance fees prior to the payment date for the annual renewal.
- Prior to the publication of a rating or amendments, whenever feasible HR Ratings will provide the entity or issuer with all relevant information as well as the principle factors considered in the assigning of a rating.

HR Ratings will also consider any clarification made by the entity or issuer that would result in a more accurate rating in accordance with the procedure established in the Agency's General Operations Plan. Under no circumstances will HR Ratings offer

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

additional services or renegotiate any clause in the service contract as a result of the clarification procedure outlined here.

HR Ratings may publish a rating, or an amended rating without previously informing the entity or issuer rated in the event of any circumstance that would directly affect the rating and of which market participants should be informed immediately, given the material impact the event could have on their perspective of the corresponding entity, issuer, or transaction.

If HR Ratings fails to deliver to the entity or issuer rated the analysis report or press release prior to the publication of a rating, HR Ratings must do so immediately after publication and provide details of the reasons for the delay.

- The press release announcing the rating shall include the items indicated in the Agency's General Operations Plan as well as those in the Provisions and in local regulations applicable to HR Ratings. This shall be written in clear and easily understood language.
- If HR Ratings has received revenue from issuers or entities for items that are not included in the service provided for the rating of securities, HR Ratings will indicate the portion such revenue represents in relation to the aggregate revenues earned by each entity or issuer as a result of their main activity.
- Upon publication of a rating, HR Ratings will not disclose any non-public or confidential material information pertaining to the entity or issuer, in accordance with their instructions.
- Ratings not required for securities offerings may be kept private until said entity or issuer requests their publication. The assigned rating may be published without convening the Credit Analysis Committee to agree to this publication, unless

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

additional information has been provided or there are new elements that may have an impact on the rating assigned.

2. The obligation to publish initial ratings for possible securities offerings applies only in countries where this is required by law.

3. Inappropriate dissemination within and outside HR Ratings of a pending rating action before publication of the credit rating on the Internet or through another readily accessible means is strictly prohibited.

4. HR Ratings will publish the following information on its website free of charge and non-selectively:

- Press releases for assigned ratings, amendments of these ratings, or the withdrawal of ratings, as well as decisions to suspend the follow-up for a rating and the reasons for such action. The foregoing with the exception of private ratings which shall be sent solely to the requesting entity or issuer. Press releases will be available on the Agency website for a period of at least 12 (twelve) months from their date of publication.

In addition, HR Ratings will issue a press release if an entity decides to rescind their service contract when it is known that this rescission was in response to a rating downgrade. This will be issued on the business day following rescission.

- Historical information on annual default rates for each of the rating categories and transition matrices across assigned ratings.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- Methodologies used for the rating of entities, issuers and/or issues, and any substantial amendment of these documents and the rating process.
- In the case of amendments to the rating methodologies and procedure, the reason or justification of said amendments will be indicated and they will be analyzed to determine whether they could result in changes to any current rating.
- Notice of the existence of any significant error identified in any procedure or methodology that could result in any change to a current rating.
- Comments received from the market, in general, through the HR Ratings website regarding new methodologies or amendments to methodologies as well as comments related to a current methodology and the corrective action taken.

The Agency will publicly maintain the comments received regarding the draft for a new methodology or amendment of a methodology for a minimum of 10 (ten) calendar days from the date the corresponding draft is published.

Comments received regarding a current methodology will be maintained on the Agency's website until the methodology in question is amended and the draft is published to receive new comments from the market.

- The follow-up processes for a rating, the frequency of reviews, and also the criteria for the withdrawal or suspension of a rating.
- The structure and voting process for committees that determine the ratings and their follow-up, if applicable.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- ○ Scales, nomenclatures and their definitions, and the definition of default as agreed by the Methodology Committee.
- ○ A list of ratings assigned to each entity or issuer from the date of the initial rating action. The foregoing provided the rating has been amended.
- ○ This Code and its amendments, within a period of 2 (two) business days following the date they have been approved by the competent authority for such purposes.
- ○ Contact information for:
  - □ Any question from any market participant regarding the rating methodologies.
  - □ Any question from any market participant regarding the Agency's Internal Rules.
  - □ Development of business and entities or issuers.
- ○ The annual report, approved by the Board of Directors, containing relevant information on the activities of HR Ratings, its structure, the number of ratings assigned, changes to the Agency's policies, procedures, and other relevant items during the corresponding year. The report will be released the same day it is submitted to the CNBV.
- ○ The powers of the Board of Directors and independent board members, as well as the number of independent board members serving the Agency, including the statement explaining that these board members do not fall within any of the categories indicated in sections I to V of article 26 of the Securities Market Act.
- ○ Initial ratings, as well as changes, amendments, or cancellations of ratings, on the date they are issued.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

○ A list of public ratings and any upgrades, downgrades or amendments during the previous month within the first 5 (five) business days of each month.

○ A history of ratings assigned for each entity, issuer, securities or instruments rated by HR Ratings. Such historical information shall include the requirements established for such purposes in Appendix F "Report and/or Press Release" of the General Operations Plan.

○ Where applicable, and pursuant to applicable regulations, the Form ABS Due Diligence 15-E.

# VI.2 Dissemination of information

Ratings, as well as any changes, amendments or cancellations, will be published on the same day through stock exchanges via their electronic systems for sending and disseminating information, to the CNBV via the Securities Information Transfer System ("STIV-2"), and to the general public via the HR Ratings website and electronic communications networks.

# VI.3 Communication with the media

• Only people authorized for such purposes by the Agency are permitted to communicate with the media.

• The Chief Credit Officer, as well as the Department Heads and/or lead analysts participating in the analysis process for an entity, issuer and/or operation, may make comments to the media regarding the entities, issuers and/or operations they have rated, provided HR Ratings has already released the rating via the corresponding means.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- No Agency employee will publicly contradict the official opinion of the Credit Analysis Committee regarding any rating or opinion.
- Any member of management that participates in an interview or has any type of communication with the media will maintain a professional attitude, at all times minding their language and tone, and paying special attention to the adjectives they use. Expressions such as "horrible", "incredible", "fantastic", "the worst" and "the best" must not be used during any communication with the media. The member of management is responsible for establishing the bases, topics and rules of conversation prior to any radio, television or press interview.
- Employees who do not have authorization from the Company to exchange communications with the media shall refrain from making any comments. In the event that they are asked questions by the media, they must refrain from answering such questions.

# VI.4 Rumors

HR Ratings employees, management, shareholders and board members are prohibited from starting, circulating, or spreading sensationalistic rumors that could affect the reputation of the Agency or any entity or issuer rated by HR Ratings.

The sanctions imposed for starting, circulating, or spreading rumors will depend on the impact on the continuity of the Agency's operations, which will be evaluated by the HR Ratings Compliance Department in accordance with Appendix 11 "Criteria for determining the severity of violations of Company Rules of Procedure".

# VII. Conflicts of interest

Given the complexity of their work environment and the duties they perform, Agency employees and management are exposed to potential conflicts of interest. The term conflict of interest is understood as

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

any situation, usually of a financial or personal nature, which could influence the judgment of an individual and prevent them from making objective, fair and independent decisions.

VII.1 Identifying conflicts of interest

A conflict of interest, which would preclude the participation or influence of a manager or analyst in the determination of a rating, is considered to exist when:

- In the 12 (twelve) months prior to the start of the rating process, they have served as a board member, manager, or employee at the entity or issuer to be rated, at any entity which is a member of the same business group as the entity or issuer to be rated or has had any business dealings that could create a conflict of interest with said entities or issuers.
- Their spouse, partner, or any second-degree blood relative holds any management or senior management position with the entity or issuer to be rated. The second degree family relationship includes the parents, children, grandparents, siblings and grandchildren of the employee.
- They engage, or have engaged in, during the 12 (twelve) months prior to the start of the rating process, any other relationship that could cause a conflict of interest with the issuer and/or offering to be rated or with any entity which is a member of the same business group as the entity or issuer in question.
- They have received or are in the process of receiving a loan, credit, goods, yield, or service from the entity or issuer at better than market conditions or have engaged in a business relationship with the entity or issuer at better than market conditions.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- They perform transactions involving the securities of an entity or issuer rated or being rated, in accordance with section VII.2.3 "Securities Transactions" of this Code.
- They participate in the sale or promotion of a product or service offered by HR Ratings or are influenced by sales or commercial considerations.

The Compliance Department will maintain an updated log on the Agency's HTRON of any person that presents a potential conflict of interest with any entity or issuer rated by HR Ratings. Only the Agency's General Management, Analysis Department, Operations and Compliance Department personnel, as well as the Analysis Director and the Board of Directors, will have access to these records.

VII.2 Measures to eliminate conflicts of interest

The Agency has established the following measures to prevent employees, management and board members from being exposed to potential conflicts of interest:

VII.2.1 Objectivity, Independence and integrity

- The evaluation and analysis process for the rating of an entity, issuer and/or issue must be performed in strict adherence to the procedures set forth in the General Operations Plan and in the rating methodologies and models approved by the Agency's Board of Directors.

The Analysis Director will oversee that individuals participating in the rating process perform the evaluations or corresponding analyses in adherence to the procedures set forth in the Agency's General Operations Plan and based on the applicable rating methodologies and models.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

The foregoing is without prejudice to the ability of the independent members of the Board of Directors to perform compliance audits on the rating methodologies and models, either directly or through the designated person. The Board of Directors will approve the results of audits performed to verify compliance with the rating methodologies and models.

For their part, the Compliance Department may verify compliance with the rating procedure set forth in the Agency's General Operations Plan at any time.

- The remunerations received by board members, managers and technical personnel involved in the rating process, and all employees in general, are completely independent from revenues received by HR Ratings for the ratings assigned to any particular entity or issuer and/or issue in accordance with the remuneration policies approved by the HR Ratings Board of Directors. These policies will be reviewed periodically to ensure the objectivity of the rating process is not compromised.
- Under no circumstances shall a rating be paused or eliminated when this may lead to the entity or issuer, or any investor, the Agency itself, or any other market participant suffering any economic, financial, political, or legal impact, including the rescission of the service agreement between HR Ratings and the entity or issuer.
- The ratings issued by the Agency or any rating action must not be affected by the existence or potential existence of a commercial relationship with the entity or issuer to whom the services are rendered, or to other entities that are members of the same business group or with any third party.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- HR Ratings' employees are forbidden to provide recommendations or proposals to issue securities for which they will provide their services for the study, analysis, issuing of an opinion, evaluation or determination of credit quality, or concerning the activities of the issuer, the underwriter or any other participant in said offer.

- Policy regarding Economic Dependency

1. With respect to regulation applicable to HR Ratings in Mexico, the following apply:

- HR Ratings will refrain from providing its services when the revenues the Agency would receive from an entity or issuer wishing to engage its services, or the people who form part of the same business group or consortium to which the entity or issuer belongs, jointly represent 10% (ten per cent) or more of the total revenues received by HR Ratings during the year immediately preceding that when the corresponding service is to be provided.

Regarding states or municipalities, HR Ratings shall refrain from providing its services in the following cases:

a) When the sum of the revenues received from a state or municipality represent 5% (five percent) or more of HR Ratings' total revenues received during the year immediately preceding that when the corresponding service is to be provided.

b) When the sum of revenues received from a state and its municipalities would represent 10% (ten percent) or more of HR Ratings' total revenues received during the year immediately preceding that when the corresponding service is to be provided. This condition will only apply when the state acts as guarantor for the transactions of these municipalities.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

The calculation of the revenues indicated above will consider all revenues HR Ratings would receive from said states or municipalities, including those for services to assess the credit quality of securities issued by trusts for which the state or municipality is the trustor.

2. With respect to regulation applicable to the Agency as a ratings agency registered and regulated by the Securities and Exchange Commission ("SEC"):

- HR Ratings shall refrain from providing its services when the revenues received by the Agency from an entity or issuer that intends to engage its services, or the people who form part of the same business group or consortium to which the entity or issuer belongs, jointly represent 10% (ten per cent) or more of the total revenues received by HR Ratings during the current tax year.

*VII.2.2 Separation of functions*

- HR Ratings applies a policy of separation of functions to ensure that personnel responsible for preparing the studies for the assignment of ratings are completely separated from any activity related to the promotion and sale of the services HR Ratings provides and management of the fees and quotas the Agency charges for these services.
- In addition, HR Ratings will ensure the areas responsible for administrative matters and for the Agency's business relationships do not participate in the rating process for entities, issuers and/or issues and do not have access to customer information or files.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- This policy on separation of functions, reporting lines, oversight, and remuneration structure is set forth in the HR Ratings' Internal Control Manual.
- If any analyst receives information from a client, an Agency employee or any third party in relation to the service agreement signed between HR Ratings and the entity or issuer that indicates fees charged by the Agency or any sales or commercial information, they must respond in writing to the sender indicating that information of this nature must be addressed exclusively with the Agency's Business Development or Administrative Departments, as applicable. In addition, the employee must send a copy of their response to the Compliance Department at: compliance@hrratings.com. This Department shall document such situation and, if necessary, shall take the appropriate measures, in conjunction with the Company's General Management.

In such circumstance, it will be determined whether the sales or commercial information in question has or could have influenced the analyst. If this is found to be the case, the measures set forth in Section VII.4 "Handling Conflicts of Interest" will be applied.

- In addition, if any Business Development Department personnel or the Agency's CEO receive information from any entity or issuer that would be relevant to the analysis process, they will remind the customer, entity or issuer in writing that information of this nature must be sent exclusively to the analysis team assigned to them. In addition, the employee must send a copy of their response to the Compliance Department at: compliance@hrratings.com. This Department shall document this situation and, if necessary, shall take the appropriate measures, in conjunction with the Company's General Management.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

The situations indicated above will be documented in Compliance Department records.

# VII.2.3 Securities Transactions

1. "Securities Transactions" are those entered into directly or indirectly for:

a) Securities registered in the National Securities Register (the "Register"). Securities are shares, interests, obligations, bonds, options, certificates, promissory notes, bills of exchange, and other negotiable instruments, registered by name or not, that can be traded on the securities markets, are issued in series or in a single offering and represent the capital stock of an entity, a proportional part of an asset, or interest in a collective loan or any individual credit right pursuant to the terms of applicable local and foreign laws.
b) Certificates of deposit, commonly known as American Depositary Receipts ("ADRs") or similar instruments on foreign markets, representing the Securities mentioned in the previous point or similar or analogous instruments.
c) Derivative financial instruments as long as their underlying assets are registered Securities.
d) Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

2. The following investments are not considered Securities Transactions:

a) Shares in mutual funds.

b) Securities issued by any sovereign entity.

c) Indexed trust stock certificates (representing rights for securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters).

d) Certificates referring to a group or basket of shares or price indexes.

The following persons are prohibited from operating or maintaining Securities Transactions involving any entity or issuer that is a client of HR Ratings:

- HR Ratings, as a legal entity;

- Analysts that participate in the rating process of the entity or issuer;

- Members of the Credit Analysis Committee that participate in the rating of the entity or issuer, and

- Persons who, as a result of their duties, may have access to privileged information in terms of that set forth in section VII.2.4 of this Code.

All new Agency employees and board members will submit, on their entry or appointment date, a statement of the Securities Transactions they hold directly or indirectly in any entity or issuer; and also those of their spouse, partner, or dependent minors using the form in Appendix 1 "Report on Securities Transactions" of this Code.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

In addition, all Agency board members and employees who perform a Securities Transaction of any entity or issuer must notify the Compliance Department using the form in Appendix 1 "Report on Securities Transactions" of this Code within a period of 10 (ten) business days following the Transaction in question.

Notwithstanding, all Agency employees and board members must complete and submit Appendix 1 "Report on Securities Transactions" every 6 (six) months. The semiannual endorsement shall indicate all securities transactions performed by the employee or board member to date, regardless of whether these have been previously reported.

For the purposes of reporting bank securities representing a debt equal to or less than one year serviced by a credit institution, the renewable securities must be reported only once, indicating this in the report.

The securities transactions report must be submitted together with the corresponding bank or securities account statement, dated no more than 3 (three) months prior to submission, in which said operations are indicated. Employees and board members have the right to challenge information not relevant to the reported transaction.

HR Ratings, through the Compliance Department, shall take all necessary measures to ensure that Securities Transactions by members of the Board of Directors, management, technical personnel responsible for the preparation of reports and providing follow up on the credit quality of securities or Agency customers and employees in general do not generate conflicts of interest.

In order to fulfill this objective, HR Ratings will maintain a list of the entities or issuers rated by HR Ratings and which are public (the "Public Ratings List") in HTRON. All Agency employees and board members will have access to this list.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

In addition, the Agency will maintain a list of entities or issuers who request the rating to be private or whose initial rating process has been completed but not yet published (the "Private Ratings List"), to which only the Agency's General Management, the Compliance and Operations Department, the Business Development Department personnel, analysis managers and members of the Board of Directors will have access.

Both lists will be maintained up-to-date in the Agency's HTRON to verify that there are no conflicts of interest in the rating process derived from securities transactions in entities or issuers rated by HR Ratings held by employees and directors, as well as those of their spouses, common-law spouses or minor children.

The limitations on Securities Transactions set forth in this section and the disclosure of these will apply equally to Transactions by the spouse, partner, or dependent minors of analysis managers or technical personnel involved in the rating process.

For the purposes of that set forth in the previous paragraph, HR Ratings employees, managers and board members will make every effort to be informed of securities transactions performed by their spouse, partner and/or dependent minors. No bank or securities account statement will be required for these transactions.

# VII.2.4 Use of privileged information

For the purposes of this section, a relevant event is any fact, act, or occurrence, of any nature, which could or would influence the prices of registered securities.

HR Ratings board members, managers and employees are strictly forbidden to:

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- Obtain any benefit from any Securities Transaction performed using privileged information obtained from their participation in the rating process for these securities, or in the performance of their duties.
- Provide or transmit privileged information to other persons, being required to comply with that established in the HR Ratings' Internal Control Manual for the handling of non-public or confidential information.
- Issue recommendations regarding any securities or negotiable instruments for which the price or quote could be influenced by the use of privileged information.

Privileged information is knowledge of relevant events not disclosed to the public by an issuer through the market on which their securities are traded.

It is not necessary for the person to be aware of all details concerning the relevant event for this to be considered privileged information, it is sufficient that the information to which they have access could influence the price or quote of an issuer's securities.

The Compliance Department will be responsible for monitoring policies on securities transactions and the use of privileged information.

Any improper use of privileged information shall be considered a serious breach to be sanctioned in accordance with the criteria established in Appendix 11 "Criteria for determining the severity of violations of Company Rules" of this Code.

# VII.2.5 Loans, credits, acquisition of goods, services and yields

Management and technical personnel that have or are in the process of receiving a loan, credit, goods, yields, or the provision of any service from an entity or issuer rated by HR

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Dr. TIMOTHY JOHN HAVARD
PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

Ratings, or who engage in any other business relationship with such entity or issuer, will not be permitted to participate in the rating process involving said entity or issuer.

Those people indicated in the previous paragraph will be required to report the loans, credits, goods, yields, or services, or any other business relationship they have established or are in the process of establishing with a customer prior to commencing any participation in the rating process involving said customer, entity, or issuer, when the loan, credit, goods, yields or service, or business relationship, was established or will be established at better than market conditions. Loans, credits, goods, yields or services, or business relationships, will be reported to the Compliance Department using the form in Appendix 12 "Report on Loans, Credits, Goods, Yields and/or Services" of this code.

# VII.2.6 Gifts, entertainment and preferential treatment

- The Agency, its employees, management and board members are forbidden to:

o Receive from any employee of any financial authority, political party, or any government or state-owned institution, gifts, compensation, gratifications, or entertainment.

Use Agency or personal resources to make illicit payments to persons or organizations for the purpose of doing business or influencing their policies or decisions.

o Request or receive directly or through another person, remunerations, goods and/or services, including entertainment, as well as donations from persons with which HR Ratings maintains business relationships or who have an interest in the transaction in question.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

The Agency, its employees, management and board members are only permitted to accept or receive from any person with which HR Ratings maintains a business relationship, or from any of their employees, goods, other than cash, whose value does not exceed US$25.00 (twenty-five dollars, legal currency of the United States of America) and that are provided in the context of normal business activities, such as meetings. This means that employees, directors and board members may share items such as notepads, pens and light refreshments that are incidental to routine business interactions, provided their added value does not exceed US$25.00 (twenty-five dollars legal tender in the United States of America) per person and per interaction.

Receive remunerations, goods, donations, gifts, or gratifications from any employee of any third party when said gifts are given with the intention of influencing the decision concerning any rating, opinion, analysis, study or report the Agency is preparing.

- If any entity or issuer with which HR Ratings maintains a business or services relationship, or any employee of the entity or issuer or of any financial authority, political party, or government or state-owned institution solicits or offers technical personnel or management, or any other employee of the Agency, whether explicitly or implicitly, any type of remuneration, goods, donation, gift, gratification, or entertainment that does not comply with the characteristics set forth in this Section, the person in question must report this to the Compliance Department immediately in writing regardless of whether they have accepted it or not.

The Compliance Department shall keep a record of gifts offered to HR Ratings personnel that do not comply with the characteristics set forth in this Section according with the format contained in Appendix 13 "Gift Report".

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- In the case of any offer that would lead to a conflict of interest for the Agency, the entity, issuer, or person in question will be asked in writing by the Business Development Department to terminate the business relationship informing them of the reasons for this action.

# VII.2.7 Post-employment activities of management and technical personnel

# VII.2.7.1 Post-employment follow-up

- HR Ratings will make every effort to remain informed of the future employment of any of its employees for the purpose of informing the SEC to this effect in the event that within a period of 5 (five) years after leaving HR Ratings the former employee enters the employ of an entity, issuer, underwriter or structuring agent for a security or financial instrument rated by HR Ratings, provided the former employee (i) held a management position in the Agency, (ii) held an analyst position and participated, in any manner, in the rating process for the entity, issuer, or the rating for the instruments or operations of the structuring agent, or (iii) was a supervisor of an analyst that participated, in any manner, in the rating process for the entity, issuer, or the rating for the instruments or operations of the structuring agent. The flowchart in Appendix 2 "Post-Employment follow-up" to this document shall apply in this situation.

Policies for following up on the future employment of former HR Ratings employees are indicated in the Agency's Human Resources and Material Resources Manual.

# VII.2.7.2 Back review of the former employee

- When an analysis manager or analyst terminates their employment relationship with HR Ratings and commences work for an issuer or entity rated by the

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Dr. TIMOTHY JOHN HAVARD
PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

Agency, and for which said employee participated in the rating process as Area Director, Lead Analyst or as a member of the analysis team, or participated in the rating procedure for the structuring of a security, instrument or operation, HR Ratings will take the following measures:

- As soon as the Agency is aware of a former employee joining the entity, issuer or structurer, it will review the ratings given to said entity over the 12 (twelve) month period prior to the most recent rating HR Ratings assigned to the entity, issuer, underwriter or structuring agent before the employee left the Agency.

The review will be carried out by the Compliance Department with the support of the analyst's immediate superior pursuant to Annex 3 "HR Ratings Look Back Review".

- If any evidence is detected that would lead to the assumption that the rating or ratings were subject to a conflict of interest or that these had not been assigned in accordance with Agency policies and procedures, the Compliance Department will report said situation immediately to the Agency's Analysis Department, and the latter will be requested to start a rating review process in accordance with the procedure indicated in the HR Ratings General Operations Plan for the assignment of ratings.

In this case, HR Ratings will publish the change of rating or confirmation of the rating within a period of 15 (fifteen) calendar days following the date on which it was discovered that the rating could have been subject to a conflict of interest.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

If the rating action is a revision of a credit rating resulting from a post-employment review process, an explanation shall be included stating that the reason for the action is the discovery that a credit rating assigned to the obligor, security, or money market instrument in one or more prior rating actions was subject to a conflict of interest, including a description of the nature of the conflict, the date and associated credit rating of each prior rating action that HR Ratings determines was influenced by the conflict, and a description of the impact the conflict had on the prior rating action or actions;

If the rating action is an affirmation of a credit rating resulting from a post-employment review, an explanation shall be included stating that the reason for the action is the discovery that a credit rating assigned to the obligor, security, or money market instrument in one or more prior rating actions was subject to a conflict of interest, including a description of the nature of the conflict, an explanation of why no rating action was taken to revise the credit rating notwithstanding the presence of the conflict, the date and associated credit rating of each prior rating action that HR Ratings determines was influenced by the conflict, and a description of the impact the conflict had on the prior rating action or actions.

The flow chart provided in Appendix 2 "Post-Employment follow-up" of this Code will be taken into account in reference to section VII.2.7 of this Code.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

# VII.2.8 Selection of Service Providers

To avoid potential conflicts of interest with individuals related to HR Ratings, the following procedure will be adhered to for the selection of services providers:

1. The Human and Material Resources departments and Administration Department shall prepare a list of suppliers that render services to HR Ratings (the "List of Suppliers").
2. The List of Suppliers will be sent to the Compliance Department for comparison with the list of entities rated by HR Ratings.
3. If any suppliers included on the List of Suppliers is an entity rated by HR Ratings, the Compliance Department will analyze whether there is a conflict of interest based on the relevance of the services rendered by the corresponding supplier.
4. If the Compliance Department determines there may be a conflict of interest with the corresponding supplier, it will evaluate the feasibility of replacing said supplier along with General Management.
5. The List of Suppliers shall be updated every time HR Ratings enters into a service agreement with a new supplier.

# VII.2.9 Secure Web Site - 17g-5 CFR SEC Rule

HR Ratings will comply with the applicable provisions of Title 17 Section 240.17g-5(a)(3) of the Code of Federal Regulations ("CFR") regarding conflicts of interest relating to issuing or maintaining a credit rating for a security or money market instrument issued by an asset pool or as part of any asset-backed securities transaction (the "ABST US Ratings") that was paid for by the issuer, sponsor, or underwriter of the security or money market instrument.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

To avoid such conflicts of interest, HR Ratings will comply with the following:

(i) HR Ratings will maintain on a password protected Internet Web site (the "17g-5 Website") a list of each such security or money market instrument for which it is currently in the process of determining an initial credit rating in chronological order and identifying the type of security or money market instrument and will include the following information: a) the name of the issuer, b) the date the rating process was initiated, and c) the Internet website address where the issuer, sponsor, or underwriter of the security or money market instruments represents that the information pursuant to 17 CFR 240.17g-5(a)(3)(iii)(C) through (E) can be accessed, including the information specified in Form ABS Due Diligence 15-E (the "ABS Ratings Lists").

(ii) HR Ratings will provide free and unlimited access to the password-protected Website 17g-5 during the applicable calendar year to any NRSRO that provides HR Ratings with a copy of the certification that meets the requirements of 17 CFR 240.17g-5(e) that covers that calendar year (the "ABST Certification"). The access data will be valid from the moment the user is registered and the access data is submitted until the last day of each calendar year.

(iii) HR Ratings will obtain from the issuer, sponsor, or underwriter of each such security or money market instrument a written representation that can reasonably be relied upon in accordance with 17 CFR 240.17g-5(a)(3)(iii) (the "Issuer ABST Certification").

The provisions of paragraphs (i) through (iii) will not apply to HR Ratings when issuing or maintaining a credit rating for a security, or money market instrument issued by an asset pool or as part of any asset-backed securities transaction, if:

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

a) The issuer of the security or money market instrument is not a US Person2 as defined in 17 CFR 230.902(k) and;

b) HR Ratings has a reasonable basis to conclude that all offers and sales of the security or money market instrument by any issuer, sponsor, or underwriter linked to the security or money market instrument will occur outside the United States.

# VII.3 Disclosing conflicts of interest

- All HR Ratings employees, managers and board members are required to disclose to the Compliance Department, in writing, any personal or financial relationship, whether their own or that of any other employee of which they have knowledge, which could generate a conflict of interest with respect to any entity, issuer and/or operation.

- Disclosure of conflicts of interest must be clear, transparent and complete in all cases. To this effect, all HR Ratings employees, managers and board members must follow the procedures for identifying, handling and disclosing any potential conflict of interest as set forth in this Code.

2 U.S. Person is applicable in at least one of the following scenarios:

(i) Any person who is a resident of the United States;
(ii) Any partnership or corporation organized or incorporated under the laws of the United States;
(iii) Any estate of which any executor or administrator is a U.S. citizen;
(iv) Any trust of which any trustee is a U.S. citizen;
(v) Any agency or branch of a foreign entity located in the United States;
(vi) Any non-discretionary or similar account (other than an estate or trust) held by a distributor or other fiduciary for the benefit or account of a U.S. citizen;
(vii) Any discretionary or similar account (other than an estate or trust) held by a merchant or any other fiduciary organized, incorporated, or resident (if an individual) in the United States; and
(viii) Any partnership or corporation if:

A. It is organized or incorporated under the laws of any foreign jurisdiction; and
Formed by a U.S. citizen primarily for the purpose of investing in securities not registered under the Act, unless organized or incorporated and owned by accredited investors (as defined in §230.501(a)) other than natural persons, States or trusts.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

- If any employee, manager, or board member fails to disclose any situation that could generate a conflict of interest in a timely manner, or attempts to hide any such situation, the Compliance Department, together with the Agency's General Management, with the opinion of the Board of Directors, will analyze the case and determine the measures and/or sanctions to be applied in accordance with the terms of Section XII "Applicable Sanctions" of this Code, considering the impact on the continuity of HR Ratings operations.

Conflicts of interest must be disclosed using the form in Appendix 4 "Disclosure of Conflicts of interest" of this Code.

- In addition, Agency employees and management will use the form in Appendix 5 "Report of employment and/or positions held by family members" of this Code if their spouse, partner, or any second-degree blood relative holds any management or senior management position in any entity or issuer rated by HR Ratings. The second degree family relationship includes the parents, children, grandparents, siblings and grandchildren of the employee.

Notwithstanding the foregoing, all Agency employees and management will sign this form every 6 (six) months, indicating the positions held by their spouse, partner, or any second-degree blood relative in any entity or issuer rated by HR Ratings.

For the purposes of the above, HR Ratings employees and management will make every effort to remain informed of the employment status of their spouse, partner or second-degree blood relatives.

# VII.4 Handling conflicts of interest

- The Compliance Department, together with General Management, and where necessary, a legal advisor, will discuss and analyze real and potential conflicts of interest to determine the appropriate measures to handle such conflicts, which may include:

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

Prohibiting the individual involved in the conflict or potential conflict from participating in any manner in the analysis process for the entity, issuer and/or issue with which they have the conflict of interest until such time as the conflict is resolved or confirmed; designating a different person to take their place in the analysis process.
- Suspending the person's access to all non-public or confidential information for the entity or issuer with which they have the conflict of interest.

The above is without prejudice to any sanctions that may be applicable.

- The opinion of the Board of Directors will be heard on potential or real conflicts of interest of greater importance.
- Furthermore, when the person who discloses a conflict of interest pertaining to participation in any phase of the analysis process for an entity, issuer and/or issue is the Head of a Department, they will be substituted in their functions by the Chief Credit Officer.

If any employee involved in the analysis process already has an investment or loan prior to HR Ratings signing a service agreement which could cause a conflict of interest, said personnel will refrain from participating in said analysis process or they will disinvest the securities involved.

- If any situation involving possible conflict of interest occurs to the persons responsible for resolving possible conflicts of interest, it will be analyzed by the other responsible parties, who will take any appropriate measures. The opinion of the Board of Directors may be requested in the case of serious conflicts of interest.

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[45]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

- The Agency will refrain from entering into service agreements for rating services with entities or issuers that, directly or indirectly, hold an interest in the capital stock of HR Ratings unless such interest represents less than five percent of the ratings agency's capital stock.
- The Compliance Department will ensure all HR Ratings employees and board members adhere to the policies set forth in this Code regarding the identification, handling and disclosure of conflicts of interest.

Potential conflicts of interest shall be handled in accordance with the flow chart in Appendix 6 "Handling of potential conflicts of interest" of this Code.

Any relevant amendments to the policies for identifying and handling conflicts of interest in this section must be reported to the U.S. SEC using the NRSRO form the moment they enter into effect.

VIII. Technical quality and good character

- Employees and management personnel involved in the rating process for entities, issuers and/or issues will have experience and expertise in financial matters and credit analysis. The Head of Department responsible for the rating process for an entity, issuer, or issue must have at least 3 (three) years' experience in credit analysis, in accordance with Appendix 9 "Technical quality" to the Human and Material Resources Manual.

At least once a year, HR Ratings will perform, through the Compliance Department, assessments to determine the knowledge of analysts and analysis managers with respect to the Agency's rating procedures and methodologies used to assign ratings for the classes or sub-classes of credit ratings in which each analyst or director participates.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDER

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

- Furthermore, employees and managers participating in rating processes will also accredit their good character for the performance of their duties with honesty and integrity, in accordance with the sworn statement in Appendix 7 "Sworn Statement" of this document, which must be submitted to the Compliance Department and confirmed every 6 (six) months.

People who have been convicted of a felony or any crime against property punishable by prison will not be permitted to participate in the rating process.

The Compliance Department will determine the sanctions to be applied to those employees, management, shareholders, or board members found to be in violation of the Company Rules and other regulations applicable to HR Ratings.

In the case of serious violations of company rules as defined in Appendix 11 "Criteria for determining the severity of violations of company rules" of this Code, sanctions will be imposed by the Compliance Department after hearing the opinion of the Board of Directors.

### IX. Outside activities

- All new Agency personnel will present, on their start date and using the form in Appendix 8 "Report of other employment" of this Code, a statement of all positions they hold with any company or entity.

The above notwithstanding, all Agency employees and management must sign Appendix 8 "Report of other employment" every six 6 (months) or whenever there has been a change in their situation.

- Agency employees and managers will obtain the approval of the Compliance Department using the form in Appendix 9 "Request for permission to work outside of HR Ratings" of this Code of Conduct, to:

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

○ Work as a manager, employee, board member, or business consultant outside the Agency.

○ Commit to outside activities that could have an impact on the Agency, including:

☐ Receiving compensation to serve as administrator, custodian, guarantor, or executor for any person that is not a direct relative of the employee.

☐ Acting as representative for any social, political, religious, or business organization.

Independent board members will be disqualified from participating in any discussion that could represent a conflict of interest with the ratings the Agency issues.

**X. Conduct**

• All HR Ratings employees, management, board members and shareholders are responsible for being familiar and complying with the Agency's Internal Rules, as well as with laws, bulletins and other provisions that govern securities rating agencies. In the event of non-compliance, sanctions may be applied.

• The persons indicated in the previous paragraph will refrain from any action, either within or outside the Agency, which could damage the Agency's reputation.

**X.1 Professional conduct**

• The Agency will not tolerate any illegal, indecent, or violent act or conduct by any HR Ratings employee, manager, shareholder, or board member, or any such act or conduct that would run counter to the Agency's ethical and professional standards, and that may negatively impact the work environment or damage the Agency's reputation or image.

• Neither will the Agency permit the expression of opinions that could damage the reputation of third parties.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

That stated in the two preceding paragraphs includes any act or statement, verbal or written, made in public spaces, through mass media, on social networks, or at public or private events.

X.2 Respect

- The Agency will not tolerate the following conduct between colleagues:
  - Any act of discrimination based on race, color, religion, gender, age, nationality, social status, disability, political affiliation, marital status, or sexual orientation.
  - Offensive verbal, physical, or visual behavior that creates an intimidating, offensive, or hostile environment in the workplace.
  - Harassment or sexual harassment. Cases will be resolved per HR Ratings Harassment and Sexual Harassment Protocol.
  - The harassment of one employee by another, regardless of their gender or hierarchy, which includes, but is not limited to: unsolicited sexual advances, solicitations of sexual favors or any activity, whether physical, verbal, or visual, of a sexual nature that would interfere with the individual performing their duties or would alter the environment within the Agency. Employees affected by any conduct indicated above may report this conduct to the Human and Material Resources Department, who, together with General Management, will evaluate the situation and apply the sanctions deemed applicable depending on the seriousness of the conduct.

Complaints involving harassment will be investigated as soon as possible and with the utmost discretion. If the employee affected does not feel comfortable discussing the situation with the Human and Material Resources Department, they may present their complaint directly to the Compliance Department or General Management.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

- The Agency will respect the intellectual property rights and image of its customers, competitors, or any public figure or third party, strictly prohibiting HR Ratings employees, managers and board members from:
  - Making defamatory, degrading, or slanderous statements about others.
  - Intellectual plagiarism of information, ideas and documents.

Agency management personnel will oversee compliance with that stated in this point and in the event that any activity in violation of these guidelines is detected, said activity will be reported immediately to the Compliance Department who will determine the sanctions to be applied to the person found responsible, taking into consideration the impact on the continuity of HR Ratings operations.

X.3 Use of illegal substances

The Agency is committed to providing a healthy work environment, free of anything that would put the quality of the products and services the Agency offers at risk. To this effect, HR Ratings employees and directors are prohibited from:

- Using, selling, buying, distributing or possessing illegal substances in Agency offices.

Any deterioration in an employee's performance or incident caused due to the use of alcohol or illegal substances must be reported immediately to the Human and Material Resources Department, with a copy to General Management, who will jointly determine the disciplinary measures to be taken.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

Performance problems caused by the use of alcohol or illegal substances will be treated like any other problem related to employee performance in the workplace and may give cause for dismissal.

Employees that show indications of having problems with drug addiction or alcoholism will be encouraged to seek professional help.

- Smoking in work areas. Smoking in the workplace, which includes cigars, pipes, e-cigarettes and other tobacco products. Board members, outside advisors, consultants and visitors are also prohibited from smoking in Agency offices.

X.4 Use of email, the internet, telephone and other electronic means of communication

- Telephone networks, computers, Internet and email are considered Agency assets and must be used by HR Ratings personnel for their assigned tasks. All telephone communications, and any information transmitted, received or stored on communication media, is and will, at all times, be the property of the Agency. Personal use of communication systems must be occasional and not interfere with the responsibilities of the employee or compromise the security of the Agency.
- Additionally, any employee or director of the Agency shall comply with the Policy for the use of instant messaging tools.
- The Human and Material Resources Department and/or the Compliance Department may randomly monitor the use of communication media by any employee to ensure these systems are being used solely for business purposes.
- HR Ratings employees are strictly prohibited from:

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

o Sending or saving any message that is abusive, insulting, obscene, inappropriate, or unprofessional, such as:

☐ Messages that may be considered discriminatory based on gender, color, religion, age, nationality, disability, political affiliation, marital status, or sexual orientation.
☐ Messages that may be considered defamatory against any particular person.
☐ Messages that offend any person or would or could cause pain or suffering.
☐ Messages that focus on political or religious proselytism, self-promotion or the promotion of third- parties.
☐ Messages that could damage the image or reputation of HR Ratings or any HR Ratings customer.

o Posting any type of communication on mass media mentioning HR Ratings activities is also strictly prohibited. Only authorized Operations Department personnel may use social media authorized by the Agency to announce rating actions by HR Ratings and other information of interest to the market.

o Revealing any information related to the rating process for an entity, issuer or issue is prohibited until the rating has been made public using the mass media indicated in the HR Ratings General Operations Plan.
o Compliance Department personnel may have access to the social networks on which the Agency posts news to verify there has been no violation of the social media policy.

The Agency will maintain the technological controls necessary to ensure correct employee usage of the internet and other means of communication. This includes blocking personal email and/or internet sites that could present a risk to the Agency's technological infrastructure or could lead to an information leak, as well as music sites.

These controls do not affect sanctions that may be applied for the violation of policies indicated in this section.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# X.5 Use of Social Networks

All HR Ratings personnel are required to comply with the company rules on using Social Networks, which is based on the ethical use of these networks.

# XI. Material violations of the law

If any employee of HR Ratings, or of its affiliates, subsidiaries, or branch offices established in any country, receives notice from a third-party regarding an alleged material violation of the law by any entity or issuer rated by HR Ratings, such situation will be reported to the Compliance Department at the following address:

HR Ratings de México, S.A. de C.V.

Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México.

Phone: (55) 15 00 31 30

compliance@hrratings.com

These types of notices may be submitted confidentially or anonymously and, as applicable, will be investigated in accordance with the regulations pertaining to securities rating agencies in the country in question. HR Ratings will not be required to verify the certainty of the information provided by the third-party regarding the alleged violation of the law. Notices that, at the discretion of HR Ratings, may constitute a material violation of the law by an issuer rated by the rating agency will be reported to the authority as required by local legislation applicable to HR Ratings.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

Furthermore, if the Compliance Department, in the course of their duties, detects any breach or serious violation of HR Ratings guidelines, policies and/or control mechanisms that in their opinion could constitute a violation of the Securities Market Act, they must report such situation to the CNBV within a period of 2 (two) business days.

# XII. Applicable Sanctions

- Any violation of this Code, the Internal Control Manual, General Operations Plan, Human and Material Resources Manual, Administrative Protocol and/or Technological Infrastructure Protocol may lead to administrative, civil, labor and/or criminal action being taken.
- All HR Ratings employees, managers, and board members will report any illicit or unethical conduct, situation or activity to the Compliance Department, verbally or in writing, using the form in Appendix 10 "Report of unethical conduct" of this Code, or any such conduct, situation or activity that would violate the principles set forth in the Agency's Internal Rules on learning of such conduct, situation or activity. If the person considers it appropriate, they may report the conduct or activity to General Management.

In addition, the report indicated in the preceding paragraph may be presented anonymously through the "Anonymous Complaints" section of the "Contact Us" section on the HR Ratings website.

- The Compliance Department may establish the sanctions or measures to be taken for any violation or breach of the Agency's Internal Rules committed by employees, managers, board members or shareholders following the procedure indicated below:

1. When as a result of their oversight functions, or on receiving notice from any Agency employee or manager, the Compliance Department learn of any violation of the applicable regulations by an HR Ratings employee, manager, shareholder, or board member, or any situation that could create a conflict of interest, the Compliance Department Chief Compliance Officer will record

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[54]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

the conduct or situation in a follow-up log, noting the date on which they learned of the act or situation.

2. The Compliance Department will give the person involved the opportunity to make a verbal statement in their defense, which will be recorded in the follow-up log.

3. The Compliance Department will inform the employee, manager, or board member in question of the corresponding sanction or measure, which may be any of the following:

- a) Verbal warning.
- b) Written warning.
- c) Suspension of 3 (three) to 10 (ten) days without pay.
- d) Dismissal.
- e) Any measure to resolve a potential conflict of interest.

In the case of the sanctions indicated in points c) and d), the Compliance Department will request in writing that the Human and Material Resources Department apply these sanctions.

The Compliance Department, together with General Management, will determine the measures to resolve possible conflicts of interest.

4. Sanctions will be applied taking into consideration **Appendix 11 "Criteria for determining the severity of violations of company rules"** approved by the HR Ratings Board of Directors and appended to this Code.

However, the sanction may be reduced if the offender recognizes having committed the violation and makes amends.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

5. The sanctions imposed, or measures taken will be recorded in the follow-up log, along with any information that may have been taken into account for the determination of the sanction; for example, the recurrence of certain conduct by the employee, manager, or board member, or any situation that could be considered aggravating.

6. The Compliance Department must ensure the offender fully understands the rule violated and the seriousness their conduct represents for the Agency in order to avoid future recurrences.

- The Compliance Department will impose sanctions for serious violations of the Agency's Internal Rules after hearing the opinion of the Board of Directors.

In this case, the alleged offender may challenge the sanction imposed within 10 (ten) business days of receiving notice of the sanction.

- To prevent employees who report violations of the Agency's Internal Rules being pressured or suffering retaliation of any nature, HR Ratings will hold the name of the person that filed the report in the strictest confidence until such time as the solution or corresponding sanction has been decided and the offender notified.

The Compliance Department will conduct ongoing reviews, without prior notice, to verify that HR Ratings managers and employees comply with the Code of Conduct, Internal Control Manual and General Operations Plan.

[Translator's Note: The original document page is blank from this point with the exception of the footer.]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# XIII. APPENDIXES

# APPENDIX 1

# Report on Securities Transactions

# HR Ratings Compliance Department

In compliance with the obligation set forth in Section VII.2.3 of the Code of Conduct "Securities Transactions", I hereby report below the Securities Transactions I have as of this date and those my spouse, partner and/or minor children have, involving issuers, or entities rated by HR Ratings:

☐ I have no securities transactions to report
☐ I have the following securities transactions to report:

Securities transactions held by the undersigned

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term equivalent to or less than a year. | Total transaction amount and, if applicable, term and rate | Investment holder Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

Securities Transactions held by my spouse, partner and/or dependent minors

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term equivalent to or less than a year. | Total transaction amount and, if applicable, term and rate | Investment holder Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

# **TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

I declare I am familiar with the guidelines, policies and control mechanisms on Securities Transactions and the use of Privileged Information indicated in the HR Ratings Code of Conduct and I authorize HR Ratings to investigate, at its discretion, any potential conflict of interest.

I also authorize HR Ratings to disclose the information in this report to the Agency's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Name of employee or board member, position and signature)

# **Instructions:**

- (i) This form must be completed by all new hires of HR Ratings.
- (ii) This form must be completed by all employees, managers, or analysts who have Securities Transactions within 10 (ten) business days of performing the transaction.
- (iii) This form must be completed by analysis personnel whose spouse, partner or dependent minor(s) have undertaken a Securities Transaction.
- (iv) This form must be completed by all HR Ratings employees, board members, and managers every 6 (six) months, indicating the securities transactions they have.
- (v) Securities Transactions are those performed directly or indirectly involving:
  - a) Securities registered with the National Securities Registry.
  - b) Certificates of deposit, commonly known as American Depositary Receipts (ADRs) or similar instruments on foreign markets, representing the Securities mentioned in the previous point or similar or analogous instruments.
  - c) Derivative financial instruments provided their underlying assets are registered with the National Securities Registry.
  - d) Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.
- (vi) The following investments are not considered Securities Transactions:
  - a) Shares in mutual funds.
  - b) Securities issued by the federal government.
  - c) Indexed trust certificates (representing rights on securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters)
  - d) Certificates referring to a group or basket of shares or price indexes.
- (vii) Term renewable certificates for bank securities representing debt on a term equal to or less than one year serviced by a credit institution rated by HR Ratings must be reported only once, indicating this characteristic in the report.
- (viii) An indirect transaction is one operated by an HR Ratings employee or board member through a company in which the employee or board member holds control in accordance with the terms of article 2 of the Securities Market Act.
- (ix) A monthly account statement should be attached, dated no more than 3 (three) months prior to the present date, issued by the financial broker indicating the securities transaction.
- (x) If neither you nor your spouse, partner, or dependent minor(s) have Securities Transactions, please indicate 'Do not have' or 'not applicable'.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 2

# Post-employment follow-up

| Inputs | Activities | Products |
| --- | --- | --- |
| Notification from the Human & Material Resources Department concerning a former employee who held a position as an analyst, analyst supervisor or manager at HR Ratings, when they have been employed by an entity, issuer, underwriter or structuring agent that is a customer of HR Ratings within a period of five years after leaving HR Ratings. | The Compliance Department determines whether any of the following three conditions are met: • The former employee was a Director. • The former employee participated in the rating process for the entity, issuer, underwriter or structuring agent by which they are now employed. • The former employee supervised an analyst that participated in the rating process for the entity, issuer, underwriter or structuring agent by which they are now employed. |  |
|  | If any of these criteria are met, an "Employment Transition Report" is submitted to the SEC via the SEC website. | Employment Transition Report |
|  | On learning of a former employee entering the employment of the entity, issuer or structuring agent, the Compliance Department will review the ratings assigned to said entity during the 12 months prior to the most recent rating action by HR Ratings for the entity, issuer, underwriter or structuring agent in question before the employee left the Agency. This review is to check there was no conflict of interest. |  |
|  | Is there a potential conflict of interest? No | Look Back Review report by the Compliance Department. |
|  | The Compliance Department will ask the Credit Analysis Department to open a rating review process within 15 calendar days. If this deadline cannot be met, a press release will be issued stating there is a potential conflict of interest regarding the rating in question and that this rating is under review or surveillance. | Press release, where applicable. New rating or confirmation of the rating. |

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[59]

Dr. TIMOTHY JOHN HAVARD
PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 3

# HR Ratings Look Back Review

![img-0.jpeg](img-0.jpeg)

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 4

# Disclosure of conflicts of interest

____________________ on ____________________, __________

HR Ratings Chief Compliance Department

In compliance with that established in Chapter VII "Conflicts of Interest", Section VII.3 "Disclosure of conflicts of interest" of the HR Ratings Code of Conduct, I hereby inform you of the following situation that could generate a conflict of interest:

I authorize HR Ratings to disclose the information included in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

____________________________________________________
Name of the employee, shareholder, or board member reporting the potential conflict of interest

c.c. HR Ratings General Management

Instructions:

(i) This form must be completed by any employee with knowledge of any situation, either their own or that of another, that could generate a potential conflict of interest under the terms of Section VII "Conflicts of Interest" in the HR Ratings Code of Conduct.
(ii) In general terms, any situation must be reported, usually economic or personal, that would presume an intention to influence the judgment of an individual, and which could unduly influence objective, fair and independent decision making.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 5

Report of employment and/or positions held by family members

____________________ on ____________________, __________

# HR Ratings Chief Compliance Department

In compliance with the HR Ratings Code of Conduct, in relation to the obligation of employees of this rating agency to disclose whether their spouse, partner, or any second-degree blood relatives hold any management or senior management position in any entity or issuer rated by HR Ratings, I hereby state as follows:

☐ Neither my spouse, nor my partner, nor any second-degree blood relative of mine holds any management or senior management position in any entity or issuer rated by HR Ratings.
☐ My (indicate relationship), by the name of: ____________________, has held the position of ____________________, since ____________________ at the following entity or company rated or in the process of being rated by HR Ratings: ____________________, and performs the following activities: ____________________.

I authorize HR Ratings to disclose the information in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Employee name, position and signature)

Instructions:

(i) This form must be completed by new hires and by any employee with a family member that meets the criteria indicated in the first paragraph of this form.
(ii) In addition, all analysts must complete this form every 6 (six) months, indicating the positions held by their second-degree blood relatives in any entity or issuer rated by HR Ratings.
(iii) The category of second-relative includes the parents, children, grandparents, siblings and grandchildren of the employee.

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[62]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 6

# Handling of potential conflicts of interest

![img-1.jpeg](img-1.jpeg)

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[63]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 7

Sworn Statement

(Good character)

____________________ on ____________________, __________

HR Ratings Chief Compliance Department

I, (____________________________________________________), of my own free will and to accredit that I am of sufficient good character to be able to participate in the ratings processes of HR Ratings, pursuant to that indicated in Provision Four of the General Provisions applicable to credit rating agencies, and that I will perform my duties with integrity and honesty, hereby declare under oath to tell the truth:

I. That I am not nor have I been subject to criminal prosecution for a felony or crimes against property punishable by prison, and that if this were the case, the matter in question was concluded with my acquittal.

II. That I am not nor have I been subject to administrative investigation proceedings or hearings before the Mexican Banking and Securities Commission for serious violations of Mexican or foreign financial laws, or before any other Mexican supervisory or regulatory financial authority, or that of any other country, and that if this were the case, the matter in question was concluded by final unappealable decision or agreement expressly exonerating me.

III. That I have not been declared in civil or commercial bankruptcy, and that if this were the case, the matter in question was closed for the reasons given in Article 262 of the Commercial Bankruptcy Act or, in the case of civil bankruptcy, on having paid all creditors in full or entered into agreement with these as provided for by local law.

The undersigned authorizes HR Ratings to verify, at its discretion, the statements made herein with the corresponding authorities.

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[64]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO
POR EL CONSEJO DE LA JUDICATURA FEDERAL

**TRANSLATION FROM SPANISH**

[Logo: HR Ratings®. Credit Rating Agency]

I also authorize HR Ratings to disclose the information in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Signature)

Instructions:

This form must be completed by all analysts and endorsed every 6 (six) months.

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**Dr. TIMOTHY JOHN HAVARD**

PERITO TRADUCTOR AUTORIZADO  
POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

# APPENDIX 8

Report of other employment

on

HR Ratings Chief Compliance Department

In order to comply with the obligation to disclose any employment or position I hold or have held to date, as outlined in the HR Ratings Code of Conduct, I, _________________, holding the position of _________________ at HR Ratings, state as follows:

☐ I do not hold or perform any job or position with any issuer, entity, or company.
☐ I hold the following job(s) or position(s) in the following company/companies:

| Issuer, entity or company | Employment or position (indicate the activity you perform) | Start date | Duration of the position |
| --- | --- | --- | --- |

I also authorize HR Ratings to disclose the information included in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Employee or board member name, position and signature)

Instructions:

(i) New hires must complete this form. The foregoing is without prejudice to HR Ratings employees who must request the authorization of the Agency's Compliance Department to perform any of the activities mentioned in section IX of the HR Ratings Code of Conduct in accordance with the form included in Appendix 9 to the Code of Conduct.
(ii) In addition, all employees and board members will complete this form every 6 (six) months, indicating their activities or positions outside of HR Ratings.

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[66]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

# APPENDIX 9

Request for permission to work outside of HR Ratings

on

# HR Ratings Chief Compliance Department

In compliance with the obligation outlined in section IX "Outside Activities" of the Code of Conduct of HR Ratings de México, S.A. de C.V. (HR Ratings), I hereby inform you that it is my intention to accept employment and/or to engage in the following activity outside of HR Ratings:

Company, entity, or institution:

Position:

Activity:

For reasons of the above, I hereby request your approval to engage in the activity and/or accept the position indicated above.

I also authorize HR Ratings to disclose the information included in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Employee, shareholder, board member, manager or analyst name, position and signature)

Instructions:

This form must be completed by employees that intend to accept any position, or provide any service, paid or unpaid, outside of HR Ratings.

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[67]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

### APPENDIX 10

Report of unethical conduct

____________________ on ____________________, __________

**HR Ratings Chief Compliance Department**

I hereby inform you of the following conduct, situation, or activity that is illicit, unethical, or violates the principles outlined in the Internal Rules in order to comply with the terms of the HR Ratings Code of Conduct:

I authorize HR Ratings to disclose the information in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Employee, manager or board member name, position and signature)

Instructions:

(i) This form must be completed by HR Ratings employees, managers and/or board members upon learning of the illicit or unethical conduct, situation, or activity.
(ii) This type of report may also be submitted verbally or anonymously, through the anonymous complaints section in the "Contact" section on the HR Ratings website.

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 11

Criteria for determining the severity of violations of company rules

# Types of violations or non-compliance

- Of policies on Independence and Conflicts of Interest
- Of policies to prevent the misuse of Non-Public, Confidential, or Privileged Information
- Of general policies included in the Manuals

Sanction according to the severity of the fault or violation

| Severity | Sanction |
| --- | --- |
| Minor | Verbal warning |
| Moderate | Written warning |
| Serious | Suspension |
| Very serious | Dismissal |

The following criteria will be considered when determining the severity of the violation or non-compliance:

| Criteria | Severity |
| --- | --- |
| Sexual harassment | Very serious |
| With intent (the person knowingly acted with the intention of committing a violation) | Very serious |
| There was personal gain or benefit for a third party | Very serious |
| The Agency's image or equity was damaged | Serious or Very serious |
| A rating was affected | Serious |
| The violation was covered up | Moderate or Serious |
| Recommendations were not followed | Moderate or Serious |
| Recurrence | Moderate or Serious |
| First offense | Minor |
| Error without consequences | Minor |

Note: The sanction may be reduced if the offender accepts they committed the violation and makes amends.

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[69]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

# APPENDIX 12

Report on Loans, Credits, Goods, Yields and/or Services

on

# HR Ratings Compliance Department

In order to comply with the obligation to disclose the loans, credits, goods, performances, services, or any other business relationship or dealings I have obtained or am in the process of obtaining from any financial entity or person to whom HR Ratings provides rating services, which could represent a conflict of interest as outlined in the HR Ratings Code of Conduct, I report the following:

Loans or credits obtained, or in the process of being obtained, at better than market conditions

| Financial entity or person | Type of loan | Loan amount | Use of the loan | Term & rate | Date obtained |
| --- | --- | --- | --- | --- | --- |

Goods obtained, or in the process of being obtained, at better than market conditions

| Entity or person | Description of the good | Market price for the good | Price at which the good was obtained | Date of purchase |
| --- | --- | --- | --- | --- |

Yields obtained, or in the process of being obtained, at better than market conditions

| Financial entity | Savings account number | Savings amount | Savings account rate | Date savings account opened |
| --- | --- | --- | --- | --- |

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Page 70 / 73

[70]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

Services obtained, or in the process of being obtained, at better than market conditions

| Entity or person | Type of service | Fees charged by the Client & discount obtained | Term of the service | Date of the service |
| --- | --- | --- | --- | --- |

Other business relations or dealings obtained, or in the process of being obtained, at better than market conditions

| Entity or person | Business conducted with the client | Benefit that would be obtained at better than market conditions | Duration of the business | Date on which the business was finalized |
| --- | --- | --- | --- | --- |

I authorize HR Ratings to investigate, at its discretion, any potential conflict of interest related to this report.

I also authorize HR Ratings to disclose the information included in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Analyst name, position and signature)

Instructions:

(i) This report must be completed by newly hired analysts.
(ii) This report must also be completed by senior analysts or analysts that have received or are in the process of obtaining a loan, credit, or service from any HR Ratings Client, provided the loan, credit, or service has been or will be obtained at better than market conditions.
(ii) If none of the conditions indicated in this Appendix apply to you, indicate "Not applicable".

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Page 71 / 73

[71]

Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

TRANSLATION FROM SPANISH

[Logo: HR Ratings®. Credit Rating Agency]

# APPENDIX 13

Gift Report

|  | Sent by: |  | Sent to: |  | Type of Gift |  |  | Observations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Date | Company | Person | Employee | Position | Description | Quantity | Estimated Value | Date returned |

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[72]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

[Logo: HR Ratings®. Credit Rating Agency]

TRANSLATION FROM SPANISH

on , , .

I, , state that I have read, understood and initialed the entire HR Ratings "Code of Conduct" currently in force and that I agree to be bound by its content. In addition, I am obliged to endorse this Code semiannually, along with any updates, via the Agency's HTRON.

(signature)

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[73]

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Dr. TIMOTHY JOHN HAVARD

PERITO TRADUCTOR AUTORIZADO

POR EL CONSEJO DE LA JUDICATURA FEDERAL

**Attachment 6:** `Exhibit6.pdf`

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

## EXHIBIT 6: IDENTIFICATION OF CONFLICTS OF INTEREST RELATING TO THE ISSUANCE OF CREDIT RATINGS

HR Ratings maintains written policies, procedures, and controls to identify, eliminate, manage, handle, and disclose, as appropriate, any actual or potential conflicts of interest that may influence the rating process.

The following is a list of actual or potential conflicts of interest relating to the issuance of credit ratings that HR Ratings identifies, manages, and handles through written policies and procedures.

1. (1) Being paid by issuers or underwriters to determine credit ratings with respect to securities or money market instruments they issue or underwrite.
2. (2) Being paid by obligors to determine credit ratings of the obligors.
3. (3) Being paid by investors to determine a credit rating with respect to securities or money market instruments, where their investments transactions could be favorably or adversely impacted by the credit rating issued by the Nationally Recognized Statistical Rating Organization.
4. (4) Allowing persons within the Nationally Recognized Statistical Ratings Organization to directly own securities or money market instruments of, or having other direct ownership interests in, issuers or obligors subject to a credit rating determined by the Nationally Recognized Statistical Rating Organization.
5. (5) Allowing persons within the Nationally Recognized Statistical Ratings Organization to (i) receive a loan, credit, good, interest rate or service, from issuers or obligors subject to a credit rating determined by the Nationally Recognized Statistical Rating Organization, on more favorable conditions than those of the market or (ii) to enter into any other business relationship with said persons on more favorable conditions than those of the market.
6. (6) When the director of analysis or the analyst, in the 12 months prior to the start of the rating process, has served as board member, management, or employee of the entity or issuer to be rated, or at any entity member of the same business group as the entity or issuer to be rated, or has had any business dealings that could create a conflict of interest with said entities or issuers.
7. (7) The spouse, partner, or any blood relative to the second degree of the director of analysis or the analyst, holds any management or senior management position in the entity or issuer to be rated. The familiar relationship to the second degree includes the parents, children, grandparents, siblings, and grandchildren of the employee.
8. (8) A directive from the analysis team or analyst terminates their employment with HR Ratings and takes a position within the 12 months after the termination date with an issuer or entity rated by the credit rating agency, when the analyst has participated in the rating process as part of the analysis team or as a supervisor of an analyst that participates in any manner in the rating process, or when the analyst takes a position with a structuring agent for a security, instrument or operation in whose ratings process such person has participated.
9. (9) Being paid for services in addition to determining credit ratings by issuers, underwriters, investors or obligors that have paid HR Ratings to determine a credit rating.

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS$^{1}$

**Attachment 7:** `Exhibit7.pdf`

HR Ratings

Credit Rating Agency

# EXHIBIT 7: POLICIES TO ADDRESS AND MANAGE CONFLICTS OF INTEREST

The Compliance Department performs daily, and ongoing tasks related to the development, adjustment, and administration of the internal control policies and procedures deemed necessary related to among other things the handling and prevention of conflicts of interest.

# 1. Conflicts of interest

Given the complexity of their work environment and the duties they perform, Agency employees and management are exposed to potential conflicts of interest. The term conflict of interest being understood as any situation, usually of a financial or personal nature, which could influence the judgment of an individual and prevent them from making objective, fair and independent decisions.

# 1.1. Identifying conflicts of interest

A conflict of interest, which would preclude the participation or influence of a manager or analyst in the determination of a rating, is considered to exist when:

- In the 12 (twelve) months prior to the start of the rating process, they have served as a board member, manager, or employee at the entity or issuer to be rated, at any entity which is a member of the same business group as the entity or issuer to be rated or has had any business dealings that could create a conflict of interest with said entities or issuers.
- Their spouse, partner, or any second-degree blood relative holds any management or senior management position with the entity or issuer to be rated. The second degree family relationship includes the parents, children, grandparents, siblings and grandchildren of the employee.
- They engage, or have engaged in, during the 12 (twelve) months prior to the start of the rating process, any other relationship that could cause a conflict of interest with the issuer and/or offering to be rated or with any entity which is a member of the same business group as the entity or issuer in question.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

HR Ratings

Credit Rating Agency

- They have received or are in the process of receiving a loan, credit, goods, yield, or service from the entity or issuer at better than market conditions or have engaged in a business relationship with the entity or issuer at better than market conditions.
- They perform transactions involving the securities of an entity or issuer rated or being rated, in accordance with section VII.2.3 “Securities Transactions” of this Code.
- They participate in the sale or promotion of a product or service offered by HR Ratings or are influenced by sales or commercial considerations.

The Compliance Department will maintain an updated log on HTRON of any person that presents a potential conflict of interest with any entity or issuer rated by HR Ratings. Only the Agency’s General Management, Analysis Department, Operations and Compliance Department personnel, as well as the Analysis Director and the Board of Directors, will have access to these records.

1.2. Measures to eliminate conflicts of interest

The Agency has established the following measures to prevent employees, management and board members from being exposed to potential conflicts of interest:

a) Objectivity, Independence and integrity

- The evaluation and analysis process for the rating of an entity, issuer and/or issue must be performed in strict adherence to the procedures set forth in the General Operations Plan and in the rating methodologies and models approved by the Agency’s Board of Directors.

The Analysis Director will oversee that individuals participating in the rating process perform the evaluations or corresponding analyses in adherence to the procedures set forth in the Agency’s General Operations Plan and based on the applicable rating methodologies and models.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

2

HR Ratings

Credit Rating Agency

The foregoing is without prejudice to the ability of the independent members of the Board of Directors to perform compliance audits on the rating methodologies and models, either directly or through the designated person. The Board of Directors will approve the results of audits performed to verify compliance with the rating methodologies and models.

For their part, the Compliance Department may verify compliance with the rating procedure set forth in the Agency's General Operations Plan at any time.

- The remunerations received by board members, managers and technical personnel involved in the rating process, and all employees in general, are completely independent from revenues received by HR Ratings for the ratings assigned to any particular entity or issuer and/or issue in accordance with the remuneration policies approved by the HR Ratings Board of Directors. These policies will be reviewed periodically to ensure the objectivity of the rating process is not compromised.
- Under no circumstances shall a rating be paused or eliminated when this may lead to the entity or issuer, or any investor, the Agency itself, or any other market participant suffering any economic, financial, political, or legal impact, including the rescission of the service agreement between HR Ratings and the entity or issuer.
- The ratings issued by the Agency or any rating action must not be affected by the existence or potential existence of a commercial relationship with the entity or issuer to whom the services are rendered, or to other entities that are members of the same business group or with any third party.
- HR Ratings' employees are forbidden to provide recommendations or proposals to issue securities for which they will provide their services for the study, analysis, issuing of an opinion, evaluation or determination of credit quality, or concerning the activities of the issuer, the underwriter or any other participant in said offer.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

3

HR Ratings

Credit Rating Agency

- Policy regarding Economic Dependency

1. With respect to regulation applicable to HR Ratings in Mexico, the following apply:

- HR Ratings will refrain from providing its services when the revenues the Agency would receive from an entity or issuer wishing to engage its services, or the people who form part of the same business group or consortium to which the entity or issuer belongs, jointly represent 10% (ten per cent) or more of the total revenues received by HR Ratings during the year immediately preceding that when the corresponding service is to be provided.

Regarding states or municipalities, HR Ratings shall refrain from providing its services in the following cases:

a) When the sum of the revenues received from a state or municipality represent 5% (five percent) or more of HR Ratings' total revenues received during the year immediately preceding that when the corresponding service is to be provided.

b) When the sum of the revenues received from a state and its municipalities would represent 10% (ten percent) or more of HR Ratings' total revenues received during the year immediately preceding that when the corresponding service is to be provided. This condition will only apply when the state acts as guarantor for the transactions of these municipalities.

The calculation of the revenues mentioned above will consider all revenues HR Ratings would receive from said states or municipalities, including those for services to assess the credit quality of securities issued by trusts for which the state or municipality is the trustor.

2. With respect to regulation applicable to the Agency as a ratings agency registered and regulated by the Securities and Exchange Commission ("SEC"):

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

4

HR Ratings

Credit Rating Agency

- HR Ratings shall refrain from providing its services when the revenues received by the Agency from an entity or issuer that intends to engage its services, or the people who form part of the same business group or consortium to which the entity or issuer belongs, jointly represent 10% (ten per cent) or more of the total revenues received by HR Ratings during the current tax year.

b) Separation of functions

- HR Ratings applies a policy of separation of functions to ensure that personnel responsible for preparing the studies for the assignment of ratings are completely separated from any activity related to the promotion and sale of the services HR Ratings provides and management of the fees and quotas the Agency charges for these services.
- In addition, HR Ratings will ensure the areas responsible for administrative matters and for the Agency's business relationships do not participate in the rating process for entities, issuers and/or issues and do not have access to customer information or files.
- This policy on separation of functions, reporting lines, oversight, and remuneration structure is set forth in the HR Ratings Internal Control Manual.
- If any analyst receives information from a client, an Agency employee or any third party in relation to the service agreement signed between HR Ratings and the entity or issuer that indicates fees charged by the Agency or any sales or commercial information, they must respond in writing to the sender indicating that information of this nature must be addressed exclusively with the Agency's Business Development or Administrative Departments, as applicable. In addition, the employee must send a copy of their response to the Compliance Department at: compliance@hrratings.com. This Department shall document such situation and, if necessary, shall take the appropriate measures, in conjunction with the Company's General Management.

In such circumstance, it will be determined whether the sales or commercial information in question has or could have influenced the analyst. If this is found to be

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

5

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

the case, the measures set forth in Section VII.4 “Handling Conflicts of Interest” will be applied.

- In addition, if any Business Development Department personnel or the Agency’s CEO receive information from any entity or issuer that would be relevant to the analysis process, they will remind the customer, entity or issuer in writing that information of this nature must be sent exclusively to the analysis team assigned to them. In addition, the employee must send a copy of their response to the Compliance Department at: compliance@hrratings.com. This Department shall document this situation and, if necessary, shall take the appropriate measures, in conjunction with the Company’s General Management.

The situations indicated above will be documented in Compliance Department records.

#### b.1. Division and definition of functions and duties

HR Ratings maintains a policy of dividing functions and duties to avoid any type of conflict of interest with the entities or issuers rated.

As part of this policy, personnel responsible for preparing analyses are prohibited from involving themselves in any activity related to the promotion and sale of HR Ratings services and the processing of the fees and charges the Agency collects for these services.

Meanwhile, the employees that work in the business development, administrative and human resources departments are prohibited from participating in the rating processes for entities, issuers, and/or operations and do not have access to such information or files.

The Agency is divided into different administrative units, which perform the following functions and duties:

- The **Board of Directors** is the Agency’s highest administrative authority in charge of its running, direction, control and command to ensure and verify the proper functioning of the Agency. The Board of Directors may not interfere in the

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

6

HR Ratings®

Credit Rating Agency

procedure for the determination of credit ratings carried by the Agency. The foregoing, without prejudice to the functions and duties inherent to its position and except for its functions as a monitoring body.

- The **General Management** is responsible for directing, coordinating, and managing the overall operation of the Agency. General Management may not interfere in the procedure for the determination of credit ratings carried by the Agency, including the analysis of the entities, issuers, operations, or transactions subject to rating. The foregoing, without prejudice to the functions and activities conducted for the administration of resources and representation of the Agency.
- The **Credit Analysis Department** is responsible, among other things, for supervising the development of the analysis process and for communication with market participants to receive questions, suggestions or complaints related to the rating processes. The Credit Analysis Department has no involvement in the tasks related to the processing and collection of fees from Clients, or in matters related to business development.

Any Client that asks a member of the Credit Analysis Department personnel about the Agency's fees or its services will be directed immediately to the Business Development Department.

- The **General Methodological Criteria Department** is responsible, in collaboration with the Chief Credit Officer, for developing and proposing the methodologies, and modifications thereof, that are the basis for the analysis of any class of asset rated by the Agency, and also the quantitative models incorporated into these methodologies and the criteria for their application, to be submitted for the approval of the Methodology Committee.

The methodology committee will meet annually to assess the performance of the Agency's current models and methodologies and, accordingly, to decide on and implement modifications.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

7

![img-1.jpeg](img-1.jpeg)

Credit  
Rating  
Agency

This Department is removed from the management and collection of fees from Clients and has no involvement in questions related to business development.

- The **Compliance Department** is responsible for overseeing compliance by the Agency, its shareholders, board members, management, technical personnel and other employees with the HR Ratings Company Rules, and in general, with all regulations applicable to credit rating agencies and also for mitigating potential regulatory risks in the day-to-day operation.

To ensure the foregoing, the General Compliance Department performs daily, and ongoing tasks related to the development, adjustment, and administration of the internal control structure and procedures deemed necessary related to: the improper use of non-public material or confidential information; the handling and prevention of conflicts of interest; compliance with regulations applicable to credit rating agencies, and the handling of complaints.

Likewise, it is in charge of identifying, monitoring and mitigating both internal and external risks that refer to possible non-compliance with Internal Rules and the Institution's rating process. For the purposes of the foregoing, it develops and carries out audits on a daily basis to detect and mitigate said risks.

The General Compliance Department personnel are not permitted to participate in the rating process or in the preparation of rating methodologies, perform functions related to sales or business relations, or be involved in the setting of HR Ratings employee salaries, other than those of the people that report directly to such department.

The above, with the exception of that referring to the tasks conferred in the capacity of auditor, in accordance with the other documents that comprise the Agency's Internal Rules.

- The **Operations Department** is in charge of coordinating and overseeing the general ratings procedure. This department is in charge of acting as a control desk

---

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS$^{8}$

HR Ratings

Credit Rating Agency

for the Credit Analysis and Business Development Departments in terms of both departments' internal back office. This involves having full knowledge of the rating process from an operations standpoint, with the ability to carry out the revision and verification of documents necessary for the closing of sales, assignment of analysts to the rating procedure, sending of calls for the Committees, sending of rating reports to be signed, publication and billing verification.

- The **Business Development Department** is responsible for the Agency's relationship with clients, for reviewing the service contracts and non-disclosure agreements or engagement letters entered into with the entities or issuers, and also for informing Clients of the fees the Agency charges for its services.

This Department is also responsible for establishing and maintaining contact with market investors in order to expand and maintain the presence of the Agency and is independent from the rating process for entities, issuers, and/or offerings.

- The **Human Resources and Material Resources Department** is responsible, among other activities, for human resources matters, from selection and hiring to, when such is the case, the termination of employment, and also payroll and employee benefits. In addition, this Department manages the Agency's material resources. This Department has no influence or involvement in the rating processes or collecting fees.
- The **Administrative Department** is responsible, among other activities, for processing and collecting fees from the entities or issuers for the rating services the Agency provides and has no influence or involvement in the rating processes. As part of the policy to divide functions and duties, the analysis Department is physically separated from the areas responsible for administrative matters and business relations. The foregoing is implemented through a system of closed doors with access restricted by fingerprints.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

9

HR Ratings

Credit Rating Agency

b.2 Remuneration, reporting and supervision

The remunerations of the board members, management and technical personnel involved in the rating process, and employees in general will be determined according to a fixed component that bears no relation to the ratings the Agency issues or its earnings. The remuneration of all HR Ratings employees will also consider the annual performance reviews administered by the Administrative and Human Resources Department.

The remuneration policies and structures for management and technical personnel discussed in this section will be reviewed periodically to ensure the objectivity of the rating process is not compromised.

The reporting lines, remuneration structures, and supervision of the bodies or departments into which the Agency is divided are as follows. Additionally, the organization chart with the reporting lines is included in Appendix 6 “Organization Chart” of the Internal Control Manual.

- The Board of Directors is the highest administrative authority of the Agency; the compensation its members receive is merely symbolic, as serving on the board is an honorary position, and is not related to the revenue HR Ratings receives for its ratings.
- The General Management reports directly to the Board of Directors and their salary bears no relation to the ratings the Agency issues.
- The Analysis Department reports directly to the Agency’s CEO and the salaries of the personnel assigned to this Department bear no relation to the revenue HR Ratings receives for its ratings.
- The Compliance Department reports directly to the Board of Directors and the salaries of the personnel assigned to this Department bear no relation to the

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 10

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Credit Rating Agency

revenue the Agency receives for its ratings and are determined to ensure their judgment remains independent.

The Chief Compliance Officer delivers an annual report on their activities and performance to the Board of Directors and to the Agency's CEO, in accordance with legislation applicable to HR Ratings.

- The **General Methodological Criteria Department** reports directly to the Credit Analysis Department and the salaries of the persons assigned to this Department bear no relation to the ratings or methodologies that the Agency issues.
- The **Operations Department** reports directly to the Agency's CEO and the salaries of the persons assigned to this Department bear no relation to the revenue HR Ratings receives for its ratings.
- The **Business Development** reports directly to the Agency's CEO and the salaries of the persons assigned to this Department are independent of the Agency's rating actions.
- The **Human Resources and Material Resources Department and the Administrative Department** report directly to the Agency's CEO and the salaries of the persons assigned to this Department are independent of the Agency's rating actions.

Any violation of HR Ratings' Internal Rules and/or the regulations applicable to credit rating agencies by any of the officers mentioned previously will be sanctioned individually by the Agency's Compliance Department or, in the case of serious fault hearing the opinion of the Board of Directors.

c) Securities Transactions

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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1. "Securities Transactions" are those entered into directly or indirectly for:

a. Securities registered in the National Securities Register (the "Register"). Securities are shares, interests, obligations, bonds, options, certificates, promissory notes, bills of exchange, and other negotiable instruments, registered by name or not, that can be traded on the securities markets, are issued in series or in a single offering and represent the capital stock of an entity, a proportional part of an asset, or interest in a collective loan or any individual credit right pursuant to the terms of applicable local and foreign laws.

b. Certificates of deposit, commonly known as American Depositary Receipts ("ADRs") or similar instruments on foreign markets, representing the Securities mentioned in the previous point or similar or analogous instruments.

c. Derivative financial instruments as long as their underlying assets are registered Securities.

d. Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.

2. The following investments are not considered Securities Transactions:

a) Shares in investment funds.

b) Securities issued by any sovereign entity.

c) Indexed trust stock certificates (representing rights for securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters).

d) Certificates referring to a group or basket of shares or price indexes.

The following persons are prohibited from operating or maintaining Securities Transactions involving any entity or issuer that is a client of HR Ratings:

• HR Ratings, as a legal entity;

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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- Analysts that participate in the rating process of the entity or issuer;
- Members of the Credit Analysis Committee that participate in the rating of the entity or issuer, and
- Persons who, as a result of their duties, may have access to privileged information in terms of that set forth in section VII.2.4 of the Code of Conduct.

All new Agency employees and board members will submit, on their entry or appointment date, a statement of the Securities Transactions they hold directly or indirectly in any entity or issuer; and also those of their spouse, partner, or dependent minors using the form in Appendix 1 “Report on Securities Transactions” of this Code.

In addition, all Agency board members and employees who perform a Securities Transaction of any entity or issuer must notify the Compliance Department using the form in Appendix 1 “Report on Securities Transactions” of this Code within a period of 10 (ten) business days following the Transaction in question.

Notwithstanding, all Agency employees and board members must complete and submit Appendix 1 “Report on Securities Transactions” every 6 (six) months. The semiannual endorsement shall indicate all securities transactions performed by the employee or board member to date, regardless of whether these have been previously reported.

For the purposes of reporting bank securities representing a debt equal to or less than one year serviced by a credit institution, the renewable securities must be reported only once, indicating this in the report.

The securities transactions report must be submitted together with the corresponding bank or securities account statement, dated no more than 3 (three) months prior to submission, in which said operations are indicated. Employees and board members have the right to challenge information not relevant to the reported transaction.

HR Ratings, through the Compliance Department, shall take all necessary measures to ensure that Securities Transactions by members of the Board of Directors,

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 13

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management, technical personnel responsible for the preparation of reports and providing follow up on the credit quality of securities or Agency customers and employees in general do not generate conflicts of interest.

In order to fulfill this objective, HR Ratings will maintain a list of the entities or issuers rated by HR Ratings and which are public (the “Public Ratings List”) in HTRON. All Agency employees and board members will have access to this list.

In addition, the Agency will maintain a list of entities or issuers who request the rating to be private or whose initial rating process has been completed but not yet published (the “Private Ratings List”), to which only the Agency’s General Management, the Compliance and Operations Department, the Business Development Department personnel, analysis managers and members of the Board of Directors will have access.

Both lists will be maintained up-to-date in HTRON to verify that there are no conflicts of interest in the rating process derived from securities transactions in entities or issuers rated by HR Ratings held by employees and directors, as well as those of their spouses, common-law spouses or minor children.

The limitations on Securities Transactions set forth in this section and the disclosure of these will apply equally to Transactions by the spouse, partner, or dependent minors of analysis managers or technical personnel involved in the rating process.

For the purposes of that set forth in the previous paragraph, HR Ratings employees, managers and board members will make every effort to be informed of securities transactions performed by their spouse, partner and/or dependent minors. No bank or securities account statement will be required for these transactions.

# d) Use of privileged information

For the purposes of this section, a relevant event is any fact, act, or occurrence, of any nature, which could or would influence the prices of registered securities.

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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HR Ratings board members, managers and employees are strictly forbidden to:

- Obtain any benefit from any Securities Transaction performed using privileged information obtained from their participation in the rating process for these securities, or in the performance of their duties.
- Provide or transmit privileged information to other persons, being required to comply with that established in the HR Ratings Internal Control Manual for the handling of non-public or confidential information.
- Issue recommendations regarding any securities or negotiable instruments for which the price or quote could be influenced by the use of privileged information.

Privileged information is knowledge of relevant events not disclosed to the public by an issuer through the market on which their securities are traded.

It is not necessary for the person to be aware of all details concerning the relevant event for this to be considered privileged information, it is sufficient that the information to which they have access could influence the price or quote of an issuer's securities.

The Compliance Department will be responsible for monitoring policies on securities transactions and the use of privileged information.

Any improper use of privileged information shall be considered a serious breach to be sanctioned in accordance with the criteria established in Appendix 11 "Criteria for determining the severity of violations of Company Rules" of the Code of Conduct.

e) Loans, credits, acquisition of goods, services and yields

Management and technical personnel that have or are in the process of receiving a loan, credit, goods, yields, or the provision of any service from an entity or issuer rated by HR Ratings, or who engage in any other business relationship with such entity or issuer, will not be permitted to participate in the rating process involving said entity or issuer.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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Those people indicated in the previous paragraph will be required to report the loans, credits, goods, yields, or services, or any other business relationship they have established or are in the process of establishing with a customer prior to commencing any participation in the rating process involving said customer, entity, or issuer, when the loan, credit, goods, yields or service, or business relationship, was established or will be established at better than market conditions. Loans, credits, goods, yields or services, or business relationships, will be reported to the Compliance Department using the form in Appendix 12 “Report on Loans, Credits, Goods, Yields and/or Services” of the Code of Conduct.

f) Gifts, entertainment and preferential treatment

- The Agency, its employees, management and board members are forbidden to:
  - Receive from any employee of any financial authority, political party, or any government or state-owned institution, gifts, compensation, gratifications, or entertainment.

Use Agency or personal resources to make illicit payments to persons or organizations for the purpose of doing business or influencing their policies or decisions.

- Request or receive directly or through another person, remunerations, goods and/or services, including entertainment, as well as donations from persons with which HR Ratings maintains business relationships or who have an interest in the transaction in question.

The Agency, its employees, management and board members are only permitted to accept or receive from any person with which HR Ratings maintains a business relationship, or from any of their employees, goods, other than cash, whose value does not exceed US$25.00 (twenty-five dollars, legal currency of the United States of America) and that are provided in the context of normal business activities, such as meetings. This means that employees, directors and board members may share items such as notepads, pens and light refreshments that are incidental to routine

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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business interactions, provided their added value does not exceed US$25.00 (twenty-five dollars legal tender in the United States of America) per person and per interaction.

Receive remunerations, goods, donations, gifts, or gratifications from any employee of any third party when said gifts are given with the intention of influencing the decision concerning any rating, opinion, analysis, study or report the Agency is preparing.

- If any entity or issuer with which HR Ratings maintains a business or services relationship, or any employee of the entity or issuer or of any financial authority, political party, or government or state-owned institution solicits or offers technical personnel or management, or any other employee of the Agency, whether explicitly or implicitly, any type of remuneration, goods, donation, gift, gratification, or entertainment that does not comply with the characteristics set forth in this Section, the person in question must report this to the Chief Compliance Officer immediately in writing regardless of whether they have accepted it or not.

The Compliance Department shall keep a record of gifts offered to HR Ratings personnel that do not comply with the characteristics set forth in this Section according with the format contained in **Appendix 13 “Gift Report”** of the Code of Conduct.

- In the case of any offer that would lead to a conflict of interest for the Agency, the entity, issuer, or person in question will be asked in writing by the Business Development Department to terminate the business relationship informing them of the reasons for this action.

# g) Post-employment activities of management and technical personnel

# 1. Post-employment follow-up

- HR Ratings will make every effort to remain informed of the future employment of any of its employees for the purpose of informing the SEC to this effect in the event that within a period of 5 (five) years after leaving HR Ratings the former employee

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

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enters the employ of an entity, issuer, underwriter or structuring agent for a security or financial instrument rated by HR Ratings, provided the former employee (i) held a management position in the Agency, (ii) held an analyst position and participated, in any manner, in the rating process for the entity, issuer, or the rating for the instruments or operations of the structuring agent, or (iii) was a supervisor of an analyst that participated, in any manner, in the rating process for the entity, issuer, or the rating for the instruments or operations of the structuring agent. The flowchart in Appendix 2 “Post-Employment follow-up” to this document shall apply in this situation.

Policies for following up on the future employment of former HR Ratings employees are indicated in the Agency’s Human Resources and Material Resources Manual.

2. Back review of the former employee

- When an analysis manager or analyst terminates their employment relationship with HR Ratings and commences work for an issuer or entity rated by the Agency, and for which said employee participated in the rating process as Area Director, Lead Analyst or as a member of the analysis team, or participated in the rating procedure for the structuring of a security, instrument or operation, HR Ratings will take the following measures:

- As soon as the Agency is aware of a former employee joining the entity, issuer or structurer, it will review the ratings given to said entity over the 12 (twelve) month period prior to the most recent rating HR Ratings assigned to the entity, issuer, underwriter or structuring agent before the employee left the Agency.

The review will be carried out by the Compliance Department with the support of the analyst’s immediate superior.

- If any evidence is detected that would lead to the assumption that the rating or ratings were subject to a conflict of interest or that these had not been assigned in accordance with Agency policies and procedures, the Compliance Department will report said situation immediately to the Agency’s Analysis Department, and

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS

18

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the latter will be requested to start a rating review process in accordance with the procedure indicated in the HR Ratings General Operations Plan for the assignment of ratings.

In this case, HR Ratings will publish the change of rating or confirmation of the rating within a period of 15 (fifteen) calendar days following the date on which it was discovered that the rating could have been subject to a conflict of interest.

If the rating action is a revision of a credit rating resulting from a post-employment review process, an explanation shall be included stating that the reason for the action is the discovery that a credit rating assigned to the obligor, security, or money market instrument in one or more prior rating actions was subject to a conflict of interest, including a description of the nature of the conflict, the date and associated credit rating of each prior rating action that HR Ratings determines was influenced by the conflict, and a description of the impact the conflict had on the prior rating action or actions.

If the rating action is an affirmation of a credit rating resulting from a post-employment review, an explanation shall be included stating that the reason for the action is the discovery that a credit rating assigned to the obligor, security, or money market instrument in one or more prior rating actions was subject to a conflict of interest, including a description of the nature of the conflict, an explanation of why no rating action was taken to revise the credit rating notwithstanding the presence of the conflict, the date and associated credit rating of each prior rating action that HR Ratings determines was influenced by the conflict, and a description of the impact the conflict had on the prior rating action or actions.

The flow chart provided in **Appendix 2 “Post-Employment follow-up”** of the Code of Conduct will be taken into account in reference to section VII.2.7 of the Code of Conduct.

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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h) Selection of Service Providers

To avoid potential conflicts of interest with individuals related to HR Ratings, the following procedure will be adhered to for the selection of services providers:

1. The Human and Material Resources departments and Administration Department shall prepare a list of suppliers that render services to HR Ratings (the "List of Suppliers").
2. The List of Suppliers will be sent to the Compliance Department for comparison with the list of entities rated by HR Ratings.
3. If any suppliers included on the List of Suppliers is an entity rated by HR Ratings, the Compliance Department will analyze whether there is a conflict of interest based on the relevance of the services rendered by the corresponding supplier.
4. If the Compliance Department determines there may be a conflict of interest with the corresponding supplier, it will evaluate the feasibility of replacing said supplier along with General Management.
5. The List of Suppliers shall be updated every time HR Ratings enters into a service agreement with a new supplier.

1.3. Disclosing conflicts of interest

- All HR Ratings employees, managers and board members are required to disclose to the Compliance Department, in writing, any personal or financial relationship, whether their own or that of any other employee of which they have knowledge, which could generate a conflict of interest with respect to any entity, issuer and/or operation.
- Disclosure of conflicts of interest must be clear, transparent and complete in all cases. To this effect, all HR Ratings employees, managers and board members must follow the procedures for identifying, handling and disclosing any potential conflict of interest as set forth in this Code.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 20

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- If any employee, manager, or board member fails to disclose any situation that could generate a conflict of interest in a timely manner, or attempts to hide any such situation, the Compliance Department, together with the Agency's General Management, with the opinion of the Board of Directors, will analyze the case and determine the measures and/or sanctions to be applied in accordance with the terms of Section XII "Applicable Sanctions" of this Code, considering the impact on the continuity of HR Ratings operations.

Conflicts of interest must be disclosed using the form in Appendix 4 "Disclosure of Conflicts of interest" of this Code.

- In addition, Agency employees and management will use the form in Appendix 5 "Report of employment and/or positions held by family members" of this Code if their spouse, partner, or any second-degree blood relative holds any management or senior management position in any entity or issuer rated by HR Ratings. The second degree family relationship includes the parents, children, grandparents, siblings and grandchildren of the employee.

Notwithstanding the foregoing, all Agency employees and management will sign this form every 6 (six) months, indicating the positions held by their spouse, partner, or any second-degree blood relative in any entity or issuer rated by HR Ratings.

For the purposes of the above, HR Ratings employees and management will make every effort to remain informed of the employment status of their spouse, partner or second-degree blood relatives.

1.4. Handling conflicts of interest

- The Compliance Department, together with General Management, and where necessary, a legal advisor, will discuss and analyze real and potential conflicts of interest to determine the appropriate measures to handle such conflicts, which may include:
  - Prohibiting the individual involved in the conflict or potential conflict from participating in any manner in the analysis process for the entity, issuer and/or issue with which

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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they have the conflict of interest until such time as the conflict is resolved or confirmed; designating a different person to take their place in the analysis process.

- ○ Suspending the person's access to all non-public or confidential information for the entity or issuer with which they have conflict of interest.

The above is without prejudice to any sanctions that may be applicable.

- • The opinion of the Board of Directors will be heard on potential or real conflicts of interest of greater importance.
- • When the person who discloses a conflict of interest pertaining to participation in any phase of the analysis process for an entity, issuer and/or issue is the Head of a Department, they will be substituted in their functions by the Chief Credit Officer.
- • If any employee involved in the analysis process already has an investment or loan prior to HR Ratings signing a service agreement which could cause a conflict of interest, said personnel will refrain from participating in said analysis process or they will disinvest the securities involved.
- • If any situation involving possible conflict of interest occurs to the persons responsible for resolving possible conflicts of interest, it will be analyzed by the other responsible parties, who will take any appropriate measures. The opinion of the Board of Directors may be requested in the case of serious conflicts of interest.
- • The Agency will refrain from entering into service agreements for rating services with entities or issuers that, directly or indirectly, hold an interest in the capital stock of HR Ratings unless such interest represents less than five percent of the ratings agency's capital stock.
- • The Compliance Department will ensure all HR Ratings employees and board members adhere to the policies set forth in this Code regarding the identification, handling and disclosure of conflicts of interest.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 22

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Potential conflicts of interest shall be handled in accordance with the flow chart in **Appendix 6 “Handling of potential conflicts of interest”** of the Code of Conduct.

Any relevant amendments to the policies for identifying and handling conflicts of interest in this section must be reported to the U.S. SEC using the NRSRO form the moment they enter into effect.

---

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 23

HR Ratings

Credit Rating Agency

# APPENDIX 1

# Report on Securities Transactions

HR Ratings Chief Compliance Officer

To comply with the obligation set forth in Section VII.2.3 of the Code of Conduct “Securities Transactions”, I report below the Securities Transactions the undersigned operates as of this date and those my spouse, partner and/or dependent minors operate, involving issuers, or entities rated by HR Ratings:

☐ I have no securities transactions to report
☐ I have the following securities transactions to report:

Securities transactions held by the undersigned

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term equivalent to or less than a year. | Total transaction amount and, if applicable, term and rate | Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

Securities Transactions held by my spouse, partner and/or dependent minors

| Full name of the issuer or company | Transaction Date | Volume, type, series, or class of Securities or debt instruments with a term | Total transaction amount and, if applicable, term and rate | Holder of the investment (detail in the case of indirect investments) | Business name of the agent that performed the transaction |
| --- | --- | --- | --- | --- | --- |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 24

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|  |  | of one year or less |  |  |  |
| --- | --- | --- | --- | --- | --- |

I declare I am familiar with the guidelines, policies and control mechanisms on Securities Transactions and the use of Privileged Information indicated in the HR Ratings Code of Conduct and I authorize HR Ratings to investigate, at its discretion, any potential conflict of interest.

I also authorize HR Ratings to disclose the information in this report to the Agency’s regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

(Name of employee or board member, position and signature)

# **Instructions:**

- (i) This form must be presented by all HR Ratings new hires.
- (ii) This form must be presented by all employees, management, or analysts who operate Securities Transactions within 10 (ten) business days of performing the transaction.
- (iii) This form must be completed by analysis personnel whose spouse, partner or dependent minor(s) have performed a Securities Transaction.
- (iv) This form must be completed by all HR Ratings employees, board members, and management every 6 (six) months, indicating the securities transactions performed.
- (v) Securities Transactions are those performed directly or indirectly involving:
  - a) Securities registered in the National Securities Registry.
  - b) Certificates of deposit, commonly known as American Depositary Receipts (ADRs) or similar instruments on foreign markets, representing the Securities mentioned in the previous point, or similar or analogous instruments.
  - c) Derivative financial instruments provided their underlying assets are registered with the National Securities Registry.
  - d) Bank securities representing debt on a term equal to or less than one year serviced by a credit institution.
- (vi) The following investments are not considered Securities Transactions:
  - a) Shares in mutual funds.
  - b) Securities issued by the federal government.
  - c) Indexed trust certificates (representing rights on securities, assets, derivatives, or other assets that seek to replicate the behavior of one or more indexes, financial assets, or reference parameters)
  - d) Certificates referring to a group or basket of shares or price indexes.
- (vii) Term renewable certificates for bank securities representing debt on a term equal to or less than one year serviced by a credit institution rated by HR Ratings must be reported only once, indicating this characteristic in the report.
- (viii) An indirect transaction is one operated by an HR Ratings employee or board member through a company in which the employee or board member holds control in accordance with the terms of article 2 of the Securities Market Act.
- (ix) A monthly account statement should be attached, dated nor more than 3 (three) months prior to the present date, issued by the financial broker indicating the securities transaction.
- (x) If neither you nor your spouse, partner, or dependent minor(s) have performed Securities Transactions with entities or issuers rated by HR Ratings, please indicate 'Do not have' or 'not applicable'.

# **APPENDIX 2**

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
 Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

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Credit Rating Agency

# Post-employment follow-up

| Inputs | Activities | Products |
| --- | --- | --- |
| Notification from the Human & Material Resources Department concerning a former employee who held a position as an analyst, analyst supervisor or manager at HR Ratings, when they have been employed by an entity, issuer, underwriter or structuring agent that is a customer of HR Ratings within a period of five years after leaving HR Ratings. | The Compliance Department determines whether any of the following three conditions are met: • The former employee was a Director. • The former employee participated in the rating process for the entity, issuer, underwriter or structuring agent by which they are now employed. • The former employee supervised an analyst that participated in the rating process for the entity, issuer, underwriter or structuring agent by which they are now employed. |  |
|  | If any of these criteria are met, an "Employment Transition Report" is submitted to the SEC via the SEC website. | Employment Transition Report |
|  | On learning of a former employee entering the employment of the entity, issuer or structuring agent, the Compliance Department will review the ratings assigned to said entity during the 12 months prior to the most recent rating action by HR Ratings for the entity, issuer, underwriter, or structuring agent in question before the employee left the Agency. This review is to check there was no conflict of interest. |  |
|  | Is there a potential conflict of interest? Yes No | Look Back Review report by the Compliance Department. |
|  | The Compliance Department will ask the Credit Analysis Department to open a rating review process within 15 calendar days. If this deadline cannot be met, a press release will be issued stating there is a potential conflict of interest regarding the rating in question and that this rating is under review or surveillance. | Press release, where applicable. New rating or confirmation of the rating. |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 26

HR Ratings

Credit Rating Agency

## APPENDIX 3
HR Ratings Back Review Detailed Flowchart

| Inputs | Activities | Products |
| --- | --- | --- |
| Notification from the Human Resources and Material Resources Department about the new employment of HR former employees. | The new employment is on any entity or issuer rated by HR Ratings or any structuring agent with which HR Ratings has or had a relationship? | No No Review Report |
|  | Yes |  |
|  | Review the Analysis Team assigned to said entity over the 12 (twelve) month period prior to the most recent rating HR Ratings assigned to the entity. |  |
|  | Review of rating process of the ratings assigned to the entity during the 12 (twelve) month period and the minutes of the corresponding Credit Analysis Committees. |  |
|  | Review e-mail communications between HR former employee and the entity. |  |
|  | A conflict of interest was detected? | No No Conflict-of-Interest Report |
|  | Yes |  |
|  | Report immediately to the General Management and Chief Credit Officer. |  |
|  | Request to the Chief Credit Officer to re-open the credit rating process. |  |
|  | Can the credit rating be released within 15 (fifteen) calendar days? | Yes Look Back Review Report and issue a revised Rating Report stating the conflict of interest detected. |
|  | No | Look Back Review Report and issue a Press Release stating the conflict of interest detected and that the credit rating is under review. |
|  | Continue performing the credit rating process | Look Back Review Report and issue a revised Rating Report stating the conflict of interest detected. |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 27

HR Ratings

Credit Rating Agency

# APPENDIX 4

# Disclosure of conflicts of interest

HR Ratings Chief Compliance Department

In compliance with that established in Chapter VII "Conflicts of Interest", Section VII.3 "Disclosure of conflicts of interest" in the HR Ratings Code of Conduct, I hereby inform you of the following situation that could generate a conflict of interest:

I authorize HR Ratings to disclose the information contained in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

Name of the employee, shareholder, or board member reporting the potential conflict of interest

c.c. HR Ratings CEO

Instructions:

- (iii) This form must be completed by any employee with knowledge of any situation, their own or that of another, that could generate a potential conflict of interest under the terms of Section VII "Conflicts of Interest" in the HR Ratings Code of Conduct.
- (iv) In general terms, any situation must be reported, usually economic or personal, that would presume an intention to influence the judgment of an individual, and which could unduly influence objective, fair and independent decision making.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 28

HR Ratings

Credit Rating Agency

# APPENDIX 5

Report of the employment and/or positions held by family members

# HR Ratings Chief Compliance Department

In compliance with the HR Ratings Code of Conduct, in relation to the obligation of employees of this rating agency to disclose whether their spouse, partner, or any second-degree blood relatives hold any management or senior management position in any entity or issuer rated by HR Rating, I hereby state as follows:

☐ Neither my spouse, nor my partner, nor any second-degree blood relative of mine holds any management or senior management position in any entity or issuer rated by HR Ratings.

☐ My (indicate relationship), by the name of: ______________, has held the position of ______________, since ___ at the following entity or company rated or in the process of being rated by HR Ratings: ______________, and performs the following activities: ______________.

I authorize HR Ratings to disclose the information in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

_________________________
(Employee name, position and signature)

Instructions:

(i) This form must be presented by new hires and by any employee with a family member that meets the condition indicated in the first paragraph of this form.
(ii) In addition, all analysts must complete this form every 6 (six) months, indicating the positions held by their second-degree blood relatives in any entity or issuer rated by HR Ratings.
(iii) The second-degree familial relationship includes the parents, children, grandparents, siblings and grandchildren of the employee.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 29

HR Ratings

Credit Rating Agency

## APPENDIX 6
Handling of potential conflicts of interest

| Inputs | Activities | Products |
| --- | --- | --- |
| 1. Semiannual reports received on HTRON: • Securities Transactions. • Loans, Credits & Services (analysis). • Employment and/or positions held by relatives. • Own position with issuers, financial entities and other companies. | Compliance Department reviews reports on HTRON and checks every week no reports are pending review. Potential conflict reported? No Yes | Backup of the report on HTRON. |
| 2. Provisional reports: • Securities Transactions • Employments and/or positions held by relatives • Positions held with issuers, financial entities & other companies • Request for approval to work outside HR Ratings • Conflicts of interest - own and others | Analyzed jointly by the Compliance Department, General Management, and legal counsel, if applicable, to determine whether there is a potential conflict of interest. Is there a potential conflict? No Yes | The situation is documented in the Report of potential conflicts of interest and the Incident report, with the respective Appendix. |
| 3. Evidence of a potential conflict of interest resulting from the audit and oversight tasks of the Compliance Department. | Pertinent measures are taken to mitigate the potential conflict. Was any company rule violated that merits sanction? No Yes |  |
|  | The Compliance Department establishes the sanction, considering the Criteria for determining the severity of the breach, hearing the prior opinion of the Board of Directors. | Recorded in the sanction follow-up log. Sanction notice |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 30

HR Ratings

Credit Rating Agency

# APPENDIX 11

Criteria for determining the severity of violations of company rules

# Types of violations or non-compliance

- Of policies on Independence and Conflicts of Interest
- Of policies to prevent the misuse of Non-Public, Confidential, or Privileged Information
- Of policies included in the Manuals in general

# Sanction according to the severity of the fault or violation

| Severity | Sanction |
| --- | --- |
| Minor | Verbal warning |
| Moderate | Written warning |
| Serious | Suspension |
| Very serious | Dismissal |

The following criteria will be considered when determining the severity of the violation or non-compliance:

| Criteria | Severity |
| --- | --- |
| Sexual harassment | Very serious |
| There was intent (the person knowingly acted with the intention of committing a violation) | Very serious |
| There was personal gain or benefit for a third party | Very serious |
| The Agency's image or equity was damaged | Serious or Very serious |
| A rating was affected | Serious |
| The violation was covered up | Moderate or Serious |
| Recommendations were not followed | Moderate or Serious |
| Recurrence | Moderate or Serious |
| First offense | Minor |
| Error without consequences | Minor |

Note: The sanction may be reduced if the offender accepts they committed the violation and makes amends.

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130. Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

Twitter: @HRRATINGS 31

![img-0.jpeg](img-0.jpeg)

Credit  
Rating  
Agency

# **APPENDIX 12**

# Report on Loans, Credits, Goods, Yields and/or Services

# **HR Ratings Chief Compliance Officer**

In order to comply with the obligation to disclose the loans, credits, goods, performances, services, or any other business relationship or dealings I have obtained or am in the process of obtaining from any financial entity or person to whom HR Ratings provides rating services, which could represent a conflict of interest as outlined in the HR Ratings Code of Conduct, I report the following:

# **Loans or credits obtained, or in the process of being obtained, at better than market conditions**

| Financial entity or person | Type of loan | Loan amount | Use of the loan | Term & rate | Date obtained |
| --- | --- | --- | --- | --- | --- |

# **Goods obtained, or in the process of being obtained, at better-than-market conditions**

| Financial entity or person | Description of the good | Market price for the good | Price at which the good was obtained | Date of purchase |
| --- | --- | --- | --- | --- |

# **Yields obtained, or in the process of being obtained, at better than market conditions**

| Financial entity | Savings account number | Savings amount | Savings account rate | Date savings account opened |
| --- | --- | --- | --- | --- |

# **Services obtained, or in the process of being obtained, at better than market conditions**

| Entity or person | Type of service | Fees charged by the Client & discount obtained | Term of the service | Date of the service |
| --- | --- | --- | --- | --- |

Mexico: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.  
 Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134, Tel +1 (212)-220-5735.

32  
Twitter: @HRRATINGS

![img-1.jpeg](img-1.jpeg)

Credit
Rating
Agency

# **Other business relations or dealings obtained, or in the process of being obtained, at better than market conditions**

| Entity or person | Business conducted with the client | Benefit that would be obtained at better than market conditions | Duration of the business | Date on which the business was finalized |
| --- | --- | --- | --- | --- |

I authorize HR Ratings to investigate, at its discretion, any potential conflict of interest related to this report.

I also authorize HR Ratings to disclose the information included in this report to the institution's regulatory authorities, both local and foreign, who may request this type of information within the scope of their authority.

Sincerely,

_________________________
(Analyst name, position and signature)

Instructions:

- (i) This report must be presented by newly hired analysts.
- (ii) This report must also be completed by senior analysts or analysts that have received or are in the process of obtaining a loan, credit, or service from any HR Ratings Client, provided the loan, credit, or service has been or will be obtained at better than market conditions.
- (iii) If none of the conditions indicated in this Appendix apply to you, indicate "Not applicable".

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México, Tel 52 (55) 1500 3130.
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

33
Twitter: @HRRATINGS

![img-2.jpeg](img-2.jpeg)

Credit  
Rating  
Agency

## APPENDIX 13

### Gift Report

| Date | Sent by: |  | Sent to: |  | Type of Gift |  |  | Observations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Company | Person | Employee | Position | Description | Amount | Estimated Value | Date returned |

México: Guillermo González Camarena No. 1200, Piso 10, Colonia Centro de Ciudad Santa Fe, Delegación Álvaro Obregón, C.P. 01210, Ciudad de México. Tel 52 (55) 1500 3130.  
Estados Unidos: 2990 Ponce de Leon Boulevard, Suite 401, Coral Gables, FL 33134. Tel +1 (212)-220-5735.

34  
Twitter: @HRRATINGS