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Duff & Phelps Credit Ratings Co.

DCR Debt & Preferred Stock Credit Rating Scales

Long-Term Debt & Preferred Stock Rating Scale

Rating Definition

AAA Highest credit quality. The risk factors are negligible, being only slightly more than for risk free U.S. Treasury debt.

AA+ High credit quality. Protection factors AA are strong. Riskis modest but may vary AA- slightly from time to time because of economic conditions.

A+ Protection factors are average but A adequate. However, risk factors are A- more variable and greater in periods of economic stress.

BBB+ Below average protection factors but BBB still considered sufficient for prudent BBB- investment. Considerable variability in risk during economic cycles.

BB+ Below investment grade but deemed BB likely to meet obligations when due. BB- Present or prospective financial protection factors fluctuate according to industry conditions or company fortunes. Overall quality may move up or down frequently within this category.

B+ Below investment grade and possessing B risk that obligations will not be met B- when due. Financial protection factors will fluctuate widely according to economic cycles, industry conditions and/or company fortunes. Potential exists for frequent changes in the rating within this category or into a higher or lower rating grade.

CCC Well below investment grade securities. Considerable uncertainty exists as to timely payment of principal, interest or preferred dividends. Protection factors are narrow and risk can be substantial with unfavorable economic/industry conditions, and/or with unfavorable company developments.

DD Defaulted debt obligations. Issuer failed to meet scheduled principal and/or interest payments.

DP Preferred stock with dividend arrearages.

Short-Term Debt Rating Scale

Rating Definition

High Grade

D-1+ Highest certainty of timely payment. Short term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding, and safety is just below risk-free U.S. Treasury short-term obligations.

D-1 Very high certainty of timely payment. Liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor.

D-1- High certainty of timely payment. Liquidity factors are strong and supported by good fundamental protection factors. Risk factors are very small.

Good Grade

D-2 Good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small.

Satisfactory Grade

D-3 Satisfactory liquidity and other protection factors qualify issues as to investment grade. Risk factors are larger and subject to more variation. Nevertheless, timely payment is expected.

Non-Investment Grade

D-4 Speculative investment characteristics. Liquidity is not sufficient to insure against disruption in debt service. Operating factors and market access may be subject to a high degree of variation.

Default

D-5 Issuer failed to meet scheduled principal and/or interest payments.

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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