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Duff & Phelps Credit Ratings Co.

Introduction to DCR International Credit Ratings

Credit ratings in the world markets have become increasingly relevant for smaller but developing local markets as well as large, sophisticated international markets. To provide well-informed international credit advice, Duff & Phelps Credit Rating Co. (DCR) has created a global network of joint venture affiliates that ranks as the premier international credit rating organization in the world.

In conjunction with its affiliates in Latin America and Asia, DCR international analysts and industry experts in London, New York and Chicago provide ratings for foreign currency and local currency issues.

These locally based professionals add unique depth to DCR's emerging market research as they have first-hand knowledge of regional accounting standards, business practices and the regulatory environment. This issue has gained increased importance in light of the trade liberalization undertaken in many of the "emerging" countries.

The three types of international ratings assigned by DCR (U.S.) and its joint venture affiliates are detailed below.

Foreign Currency Ratings

The foreign currency ratings of companies based outside the United States measure the ability of these companies to service their foreign currency obligations. These ratings incorporate all the sovereign risks of a country, including the risk of converting local currency to foreign currency. These ratings are based on DCR's domestic (U.S.) rating scale.

Local Currency Ratings

The local currency ratings of companies based outside the United States measure the ability of these companies to service their local currency obligations. These ratings incorporate all the sovereign risks of a country, except the risk of converting local currency to foreign currency. These ratings are based on DCR's domestic (U.S.) rating scale.

Local Affiliate Ratings

The local currency ratings assigned by DCR affiliates are tiered against an assumed local government rating of "AAA" and, therefore, do not incorporate all the sovereign risks of a country. These ratings are based on the relative rating scale of the affiliate and are not comparable with the ratings assigned by DCR (U.S.).

Each affiliate maintains individual ratings, which appear in the Rating Guide published monthly by DCR.

The information and opinions contained herein do not necessarily express the opinions of BradyNet, Inc. This report has been prepared solely for informational purposes and is not a solicitation of any transaction in the securities with which it deals or an offer to enter into any such transaction. Prices and/or other information in this report are subject to change without prior notice.

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