FINANCIAL INSTITUTIONS

CREDIT OPINION
29 January 2018
Banco Regional S.A.E.C.A.
Update to credit analysis
Update Summary
Moody's assigns a stand-alone credit assessment (BCA) of ba2 to Banco Regional S.A.E.C.A.
(Regional), the second largest bank in Paraguay by market share of loans. The ba2 BCA
reflects Regional's below system delinquency levels, the high concentration of its loan
book to the agriculture sector as well as its adequate capital and profitability. The BCA also
RATINGS incorporates the bank's strong reliance on deposit based funding, in large part due to its
Banco Regional S.A.E.C.A. broad geographic footprint, and adequate levels of liquid assets. Regional's long-term global
Domicile Paraguay local currency deposit rating of Ba1 derives from the bank's BCA of ba2 and incorporates
Long Term Debt Ba1
a one notch uplift as a result of Moody's assessment of a high probability of government
Type Senior Unsecured - Fgn
Curr support to the bank in an event of stress.
Outlook Stable
Long Term Deposit Ba2 Exhibit 1
Type LT Bank Deposits - Fgn Banco Regional - Key financial ratios
Curr
Banco Regional S.A.E.C.A. (BCA: ba2) Median ba2-rated banks
Outlook Stable
16% 35%

14% 30%
Please see the ratings section at the end of this report
12%
for more information. The ratings and outlook shown 25%

Liquidity Factors
Solvency Factors

reflect information as of the publication date. 10%

20%
8%
15%
6%
10%
4%
Contacts 2% 5%
2.7% 14.4% 25.0% 18.7%
1.2%
Farooq Khan 55-11-3043-6087 0% 0%
Asset Risk: Capital: Profitability: Funding Structure: Liquid Resources:
Analyst Problem Loans/ Tangible Common Net Income/ Market Funds/ Liquid Banking
[email protected] Gross Loans Equity/Risk-Weighted Tangible Assets Tangible Banking Assets/Tangible
Assets Assets Banking Assets

Maria Valeria +54.11.5129.2611 Solvency Factors (LHS) Liquidity Factors (RHS)

Azconegui Source: Moody's Financial Metrics
VP-Senior Analyst
[email protected] Credit strengths
Rodrigo Marimon 54-11-5129-2651
Bernales » Profitability is supported by the bank's well-established position in the market, with the
Associate Analyst second largest participation in loans and third by deposits in the Paraguayan banking
[email protected] system

CLIENT SERVICES » Stable core funding sources and high liquidity profile as a result of broad branch network
Americas 1-212-553-1653
» Adequate capitalization as a result of good earnings generation
Asia Pacific 852-3551-3077
Japan 81-3-5408-4100
EMEA 44-20-7772-5454
 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Credit challenges
» High concentration of lending operations with borrowers in the agriculture segment increases asset risk volatility

» Potential for increase in provisions for loan losses that would pressure profitability

Outlook
The outlook on all ratings is stable. The stable outlook reflects our expectation that Regional's standalone credit profile will remain
resilient to a the deterioration in asset quality in the Paraguayan banking system over the next 12 to 18 months.

Factors that could lead to an upgrade

Regional's standalone BCA could face positive pressure if the bank reports steady improvement of its financial metrics, particularly
profitability and asset risk, while being able to achieve higher diversification and reducing sector concentration in its loan portfolio.

Factors that could lead to a downgrade

Negative pressure could result from persistent deterioration in asset quality or a potential decline in profitability associated with higher
provisions. Additionally, a potential downgrade of Paraguay's deposit ceilings could move its deposit ratings down.

Key indicators
Exhibit 2
Banco Regional S.A.E.C.A. (Unconsolidated Financials) [1]
9-172 12-162 12-152 12-142 12-132 CAGR/Avg.3
Total Assets (PYG billion) 14,887 15,033 15,307 13,712 11,985 6.04
Total Assets (USD million) 2,626 2,607 2,647 2,958 2,606 0.24
Tangible Common Equity (PYG billion) 1,227 1,169 976 809 650 18.54
Tangible Common Equity (USD million) 216 203 169 174 141 12.04
Problem Loans / Gross Loans (%) 2.7 2.0 2.2 2.0 2.2 2.25
Tangible Common Equity / Risk Weighted Assets (%) 14.4 13.3 10.2 9.5 8.4 11.26
Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) 18.8 15.6 20.1 19.9 21.7 19.25
Net Interest Margin (%) 4.2 4.5 4.3 3.6 4.1 4.25
PPI / Average RWA (%) 4.4 5.0 4.5 2.9 3.2 4.06
Net Income / Tangible Assets (%) 1.2 1.6 1.4 1.0 1.3 1.35
Cost / Income Ratio (%) 50.7 46.7 48.9 60.2 59.2 53.15
Market Funds / Tangible Banking Assets (%) 25.0 24.7 26.1 25.9 20.1 24.35
Liquid Banking Assets / Tangible Banking Assets (%) 18.7 19.4 17.2 18.3 20.8 18.95
Gross Loans / Due to Customers (%) 119.5 115.5 121.8 115.5 102.6 115.05
[1] All figures and ratios are adjusted using Moody's standard adjustments [2] Basel I; LOCAL GAAP [3] May include rounding differences due to scale of reported amounts [4] Compound
Annual Growth Rate (%) based on time period presented for the latest accounting regime [5] Simple average of periods presented for the latest accounting regime. [6] Simple average of
Basel I periods presented
Source: Moody's Financial Metrics

Profile
The first Banco Regional was created in the city of Encarnación, in 1991, focusing in agribusiness, and supporting the development and
strengthening of producers in the region.

In 2008, Rabobank from the Netherlands joins the bank as a shareholder with 40% of the shares, and Banco Regional S.A. becomes
Banco Regional S.A.E.C.A. and the largest issue of shares in the local stock exchange is made. The Bank gets access to the Global Trade

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on
www.moodys.com for the most updated credit rating action information and rating history.

2 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Finance Program from the International Finance Corporation (IFC) and the Inter-American Development Bank (IADB). The next year,
Banco Regional acquires 100% of ABN AMRO Paraguay.

Currently, Regional is one of the leading financial entities in Paraguay, focussing on lending to the agricultural sector.

Detailed rating considerations

Asset risk pressures although problem loans are below the system's
The ba3 score for asset risk reflects bank's better than system problem loan ratios in spite of the high exposure of Regional's loan book
to borrowers in the agriculture sector, which accounted for approximately 45% of total loans in 2016.

In 3Q2017, Regional reported a problem loans of 2.7%, showing an expected increase from the 2.05% reported in 2016 and below the
system's average of 3.3%. The bank's asset quality has benefited from the adequate performance of its loan book with corporate clients
and SMEs. In addition, Regional also benefits from the risk-management practices, risk discipline and expertise in the agribusiness
sector of Rabobank (Aa2 stable, a2), which holds a 38.7% ownership stake in the bank. The bank also reported an adequate level of
reserves to withstand potential losses derived from loan operations and as of September 2017 they represented 3.15% of gross loans,
higher than the 2.5% registered in 2016, covering problem loans by 119%. However, restructured loans have grown significantly at the
bank, yet decreased to 6% of total loans from the 7% in 2016, a sign of the effects of 2015-2016's twin shocks of commodity price
declines and guarani depreciation.

Regional has the second largest market share in terms of loans and third by deposits in Paraguay. The bank has roughly 80% of its loan
book, comprised mostly of working capital credit lines and foreign trade facilities, with corporate clients, while small and medium sized
companies (SME) answer for 16% of the total. The bank's exposure to consumer finance is small, representing about 4% of total loans,
mostly in the form of personal loans and credit cards.

During the first 3 quarters of 2017, Regional's loan book just increased by 1%, still higher than the 7.6% fall in 2016. This show a partial
recovery from the system from previous loan book contraction which was a result of demand volatility from the agricultural sector in
light of commodity price swings. The Paraguayan banking system's problem loans were affected by the drop in commodity prices in
2014 and 2015, which has also affected Regional's asset risk through corporate clients associated with the agriculture segment. The
cyclical nature of the agribusiness sector is also a challenge for management of asset risk, as it adds volatility to the performance of the
loan book. The ba2 score for asset risk also incorporates our view of potential volatility in asset quality.

Capitalization to continue to remain high

In September 2017, Regional reported a regulatory total capital ratio of 17.3%, which provided an adequate cushion above the 12%
minimum required by the central bank. The ratio improved from 12.8% in 2015, driven by the reinvestment of earnings into the bank's
operation. The bank's capital position was also high when measured with Moody's ratio of TCE to risk-weighted assets (RWA), at 14.4%
and corresponds to a ba2 score for capital in its scorecard.

Despite a recent increase in loan delinquency, loan growth in Paraguiay will be supported by estimates of GDP growth of 4% in 2017
and 4.5% in 2018 and in our view, Regional's capital position means the bank is well positioned to expand its loan book. Regional also
has Tier 2 subordinated capital which accounted for 350 basis points of capital as of December 2016.

Earnings supported by ample network, but constrained by lack of diversification

Our ba2 score for profitability reflects Regional's good earnings power generation, which benefits from the bank's countrywide
distribution network, with 38 branches, and strong franchise in the agribusiness sector. However, the bank's profitability has a high
reliance on lending activities as a main source of revenues, a feature that is in line with other Paraguayan banks, and is incorporated
into our score for profitability.

As of September 2017, Regional reported net income of PYG136.8 billion, lower than the PYG168,9 billion in the previous year, despite
a 21% decrease in provision expenses to PYG141 billion. The decrease in Regional's bottom-line result was driven by a 9.2% interest
margin, and a 7% decrease in non-interest margin, which resulted in a 10% decrease in the operative margin.

3 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Stable core funding and high liquidity profile

Our ba3 funding score for Regional reflects the bank's moderate exposure to foreign currency deposits and incorporates its ample
access to core deposits. In our view, the bank's steady funding sources stands as a positive rating driver.

Total deposits represented approximately 75% of total funding as of 3Q2017. Within total deposits, 50% are demand and 50% are
time deposits, which is relatively in line with the financial system. The bank's deposits base is well diversified among corporate and
retail clients. Similar to other banks in Paraguay, Regional's largest depositor is the Instituto de Previsión Social, Paraguay's social
security system.

In recent years, Regional has improved its funding mix by adding credit lines from international financial institutions to its deposits in
the domestic market. The bank also holds a sufficient level of liquid assets to counter its exposure to market funds and as of September
2017 they represented 18.7% of liquid banking assets over tangible banking assets which maps to a b1 score for liquid assets.

Regional's rating is constrained by the Weak+ macro profile on Paraguay

As a primarily domestic bank, the bank's operating environment is heavily influenced by Paraguay and its Macro Profile is thus
aligned with that of Paraguay at Weak+. Paraguay's weak if improving institutional framework, heavy dependence on agriculture,
and vulnerability to climate-related shocks continue to weigh on the country's macro profile. Political event risk is low despite the
impeachment of the president in 2012 and energy exports keep the current account in surplus, limiting vulnerability to international
market conditions, an important consideration given the high level of dollarization of the banking system. Banks performance has
remained stable despite the country's sometimes volatile economic growth.

About Moody's bank scorecard

Our Scorecard is designed to capture, express and explain in summary form our Rating Committee's judgment. When read in
conjunction with our research, a fulsome presentation of our judgment is expressed. As a result, the output of our Scorecard
may materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strong
divergence). The Scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down to
reflect conditions specific to each rated entity.

Rating methodology and scorecard factors

Exhibit 3
Banco Regional S.A.E.C.A.
Macro Factors
Weighted Macro Profile Weak + 100%

Factor Historic Macro Credit Assigned Score Key driver #1 Key driver #2
Ratio Adjusted Trend
Score
Solvency
Asset Risk
Problem Loans / Gross Loans 2.7% ba2 ←→ ba3 Sector concentration
Capital
TCE / RWA 14.4% ba1 ←→ ba2 Capital retention
Profitability
Net Income / Tangible Assets 1.2% ba2 ←→ ba2 Expected trend
Combined Solvency Score ba2 ba2
Liquidity
Funding Structure
Market Funds / Tangible Banking Assets 24.7% ba3 ←→ ba3 Extent of market
funding reliance
Liquid Resources

4 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Liquid Banking Assets / Tangible Banking Assets 19.4% b1 ←→ b1

Combined Liquidity Score ba3 ba3
Financial Profile ba2
Business Diversification 0
Opacity and Complexity 0
Corporate Behavior 0
Total Qualitative Adjustments 0
Sovereign or Affiliate constraint: Ba1
Scorecard Calculated BCA range ba1-ba3
Assigned BCA ba2
Affiliate Support notching 0
Adjusted BCA ba2

Instrument class Loss Given Additional Preliminary Rating Government Local Currency Foreign
Failure notching Notching Assessment Support notching Rating Currency
Rating
Counterparty Risk Assessment 1 0 ba1 (cr) 0 Ba1 (cr) --
Deposits 0 0 ba2 1 Ba1 Ba2
Senior unsecured bank debt 0 0 ba2 1 -- Ba1
Source: Moody's Financial Metrics

Support and structural considerations

Notching considerations
In the absence of a bail-in resolution regime framework in Paraguay, the ratings of subordinated debts, bank hybrids, and contingent
capital securities follow the “Additional Notching Guidelines”, as per the Rating Methodology: Banks. In these cases, the approach takes
into account other features specific to debt classes, resulting in additional notching from the adjusted baseline credit assessment (BCA)
of the issuer.

Government support considerations

Regional's long-term global local currency deposit rating of Ba1 derives from the bank's BCA of ba2 and incorporates a one-notch uplift
as a result of Moody's assessment of a high probability of government support to the bank in an event of stress.

Counterparty risk assessment

CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt and
deposit ratings in that they (1) consider only the risk of default rather than both the likelihood of default and the expected financial loss
suffered in the event of default and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit
instruments. The CR assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance
obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

Regional's CR Assessment is positioned at Ba1(cr) and Not Prime (cr), which is one-notch above the bank's Adjusted BCA of ba2.
However, the CR Assessment is at the same level as Regional's deposit rating, which benefit from one-notch of government support.

Ratings
Exhibit 4
Category Moody's Rating
BANCO REGIONAL S.A.E.C.A.
Outlook Stable
Bank Deposits -Fgn Curr Ba2/NP
Bank Deposits -Dom Curr Ba1/NP
Baseline Credit Assessment ba2
Adjusted Baseline Credit Assessment ba2
Counterparty Risk Assessment Ba1(cr)/NP(cr)
Senior Unsecured Ba1
Source: Moody's Investors Service

5 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Moody’s related publications

Banking system outlook

» Banking system outlook: Strong Capital and Profitability Offset Asset Risk, Support Stable Outlook (1081023)

Rating action

» Moody's affirms ratings of three Paraguayan Banks, stable outlook

Rating methodology

» Banks, September 2017 (1065675)

Credit opinion

» Credit Opinion - Government of Paraguay – Ba1 Stable (1100337)

6 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT
RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE
RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY
MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS
DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S
OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE
MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S
PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT
PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE
SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION
AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR
PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR
RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT
YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW,
AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED
OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY
PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES
AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well
as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,
MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any
indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any
such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or
damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a
particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory
losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the
avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,
representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH
RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including
corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating,
agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain
policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and
rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at
www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors
Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended
to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you
represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or
indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as
to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless
and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other
professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s
Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally
Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an
entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered
with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred
stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees
ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER 1108212

7 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis

 MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

CLIENT SERVICES

Americas 1-212-553-1653
Asia Pacific 852-3551-3077
Japan 81-3-5408-4100
EMEA 44-20-7772-5454

8 29 January 2018 Banco Regional S.A.E.C.A.: Update to credit analysis