Credit Trends:

S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb
Global Fixed Income Research: Diane Vazza, Managing Director, New York (1) 212-438-2760; diane.vazza@standardandpoors.com Evan M Gunter, Associate Director, New York (1) 212-438-6412; evan.gunter@standardandpoors.com

Table Of Contents
Financial Measures Are Strong, But Debt Levels Are Rising Investment-Grade Companies Are Prevalent Most Constituents Have Stable Rating Outlooks, But Negative Outlooks Are Ticking Upward

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Credit Trends:

S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb
The portion of the total market capitalization of S&P500 companies that Standard & Poor's Ratings Services rates investment-grade (rated 'BBB-' and higher) comprises 92% of that total as of May 31, up from 88% earlier this year (see chart 1). This shift mainly occurred after Standard & Poor's assigned a 'AA+' rating to Apple Inc. on April 23. At the beginning of the year, Apple was the largest unrated company in the index, accounting for about 33% of the unrated constituents' market capitalization. Apple was rated when it tapped the credit markets during a period of record-low yields. Similarly, many other large investment-grade firms, including several S&P 500 constituents, have actively raised funds through the bond market this year. The total debt for the nonfinancial constituents increased as a result. Overall, the index constituents' cash and earnings have been increasing, but their debt levels have been rising more briskly since 2011. Still, these companies' relative debt levels are considerably lower now than they were in 2009, and their overall credit measures remain strong. Most of the index constituents are investment grade. So far this year, upgrades have outnumbered downgrades, and the number of investment-grade companies in the index increased by four to 390. In addition, the yield for investment-grade companies fell to 3.5% on May 1 before rising to 3.9% by the end of the month. Since Jan. 1, Standard & Poor's has upgraded 18 companies in the index and downgraded 14. The median rating has been 'BBB+' since last year. However, credit quality has begun to slip in a few areas. And debt levels have risen on both an absolute and a relative basis as yields reached historic lows and investment-grade companies actively raise funds by issuing new debt. The negative bias has increased slightly since Dec. 31, 2012, (implying a rising risk of downgrade), and the positive bias has decreased slightly (implying that fewer companies are on the verge of an upgrade). The 'A' rating category is the largest by market capitalization, and the market capitalization of companies in this rating category increased by $987 billion this year (through May 31) (see chart 1). Meanwhile, the combined market capitalization for companies in the other rating categories--except those rated 'B' and lower--rose as well. Apple's initial rating of 'AA+' in April accounts for a portion of the $729 billion increase in the combined market capitalization of companies rated 'AA' since December, and it also contributed to the loss of $445 billion from the nonrated constituents' combined market capitalization.

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 1

Financial Measures Are Strong, But Debt Levels Are Rising

The nonfinancial constituents' total debt has been rising since 2009. But only since 2011 has debt level net of cash and short-term investments increased relative to EBITDA (earnings before interest, taxes, depreciation, and amortization). Since that time, the nonfinancial constituents' total debt has expanded by $272 billion (as of March 31, 2013), and the total level of cash and short-term investments increased by $83 billion. Meanwhile, net debt (total debt minus cash and short-term investments) rose by 10%. Net debt to EBITDA (a debt payback ratio) increased from 2011 through 2012, with another slight increase through first-quarter 2013 (see chart 2). Prior to this, the ratio declined during 2009-2011, even though total EBITDA and cash levels were increasing and debt was expanding more slowly (see chart 3). In aggregate, the nonfinancial constituents' total net debt divided by the total EBITDA rose to 1.4x as of first-quarter 2013 from 1.3x as of year-end 2011. But the ratio is still considerably lower than during 2008-2009, when it nearly reached 1.8x.

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 2

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 3

The median net debt to EBITDA climbed to 1.35x as of March 31, 2013, from 1.00x as of year-end 2011, despite a slight increase in the number of companies with negative net debt (a surplus of cash over debt). The count increased to 114 companies as of first-quarter 2013 from 107 as of year-end 2011. Meanwhile, the number of companies with net debt that is less than or equal to their EBITDA fell to 188 from 212. Although the nonfinancial constituents' debt has begun to increase slightly relative to EBITDA, the level has increased more slowly relative to assets and equity. Total debt relative to total assets increased slightly to 27.7% as of year-end 2012 from 27.6% a year earlier, while total debt to total debt plus equity increased to 42.0% from 41.8%. However, from 2011 to 2012, debt levels have been creeping up relative to adjusted measures such as funds from operations (FFO) and free operating cash flows (FOCF). On an absolute basis, FFO has been rising since 2009, while FOCF has declined modestly since 2010. To compare these measures, we used credit-adjusted, financial data from CreditStats Direct for nonfinancial rated companies in the S&P 500 Index (excluding Apple). According to the CreditStats data, FFO rose to $1.24 trillion in 2012 from $1.19 trillion in 2011. However, FFO to debt declined to 39.8% from 42.4% during this period (see chart 4). FOCF (adjusted) declined to $560.7 billion in 2012 from $587.9 billion in 2011, and FOCF to debt declined to 18.0% from 20.8% (see chart 5). FFO is defined as net income from continuing operations adjusted for depreciation and amortization and other noncash and nonrecurring items, while

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

FOCF can be used as a proxy of a company's cash generated from core operations.
Chart 4

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 5

Rated companies account for at least 95% of the nonfinancial constituents' total cash debt and EBITDA. There are only 19 nonfinancial companies among the highest rating categories, 'AAA' and 'AA'. These firms comprise a larger share of cash and short-term investments of the index than debt. They account for 34% of the total cash and short-term investments and 22% of the total debt (see table 1). Several of the largest high technology firms are in the 'AA' rating category, including Apple Inc., Google Inc., and Amazon.com Inc. These companies have high cash balances and relatively low debt levels. (We include a complete list of the index constituents that are in the 'AAA' and 'AA' rating categories in table 7.)
Table 1

Total Debt, Cash, And EBITDA For S&P 500 Nonfinancial Companies By Rating Category*
--(Bil. $)-Cash and short-term investments 100.2 301.7 395.1 253.0 64.1

Rating category AAA AA A BBB BB

Count 4 15 112 195 45

Market capitalization 963.5 2,718.4 4,852.3 3,238.4 513.6

Total debt 42.0 666.8 978.8 1,063.8 361.9

EBITDA 118.7 257.2 503.8 405.5 70.0

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Table 1

Total Debt, Cash, And EBITDA For S&P 500 Nonfinancial Companies By Rating Category* (cont.)
B and lower NR Total 5 54 430 54.4 628.7 12,969.3 46.2 36.2 3,195.7 10.9 63.4 1,188.4 6.8 44.2 1,406.1

*S&P 500 companies from the nonfinancial sectors (including real estate investment trusts and excluding financial services companies). Data as of May 31, 2013. Source: Standard & Poor's Global Fixed Income Research & S&P Capital IQ.

Investment-Grade Companies Are Prevalent

Overall, 88% of the companies in the S&P 500 Index (financials and nonfinancials) are rated: 390 are investment grade (rated 'BBB-' and higher) and 51 are speculative grade (rated 'BB+' and lower) (see table 2 and chart 6).
Table 2

S&P 500 Index Global Industry Classification Standard (GICS) Sector Distribution
Total count 82 41 43 82 53 61 70 30 7 31 500 Investment-grade (count) 53 39 31 71 42 53 46 24 2 29 390 Speculative-grade (count) 16 1 9 4 2 1 6 5 5 2 51 Positive outlook or CreditWatch positive (% of total rated) 10.1 7.5 5.0 8.0 6.8 1.9 7.7 6.9 0.0 6.5 6.8 Negative outlook or CreditWatch negative (% of total rated) 13.0 22.5 7.5 26.7 9.1 9.3 9.6 17.2 0.0 6.5 14.1

Sector Consumer discretionary Consumer staples Energy Financials Healthcare Industrials Information technology Materials Telecommunication Services Utilities Total

Data as of May 31, 2013. Sources: S&P Capital IQ and Standard & Poor's Global Fixed Income Research.

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 6

Since the beginning of the year, four S&P 500 constituents became rising stars when they were upgraded to investment grade from speculative grade. Generally, the companies in the index display stronger credit measures than other U.S. companies, as whole. We can see this by comparing the ratings mix: 88% of the rated companies in the index are investment grade, compared with only 47% of rated U.S. companies as a whole (see chart 7). The median rating for an S&P 500 company is 'BBB+', three notches higher than the median U.S. corporate rating of 'BB+'.

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Chart 7

Including the four rising stars, upgrades outnumbered downgrades for index constituents during the first five months of 2013. As of May 31, Standard & Poor's upgraded 18 companies in the index and downgraded 14 (see tables 3 and 4). The financial sector had the most upgrades, five, because several real estate investment trusts were upgraded. The health care sector had the most downgrades, four. Still, the overall rating outlook for all index constituents has diminished somewhat since the beginning of the year.
Table 3

S&P 500 Companies Downgraded In 2013*

Date 1/8/2013 1/9/2013 1/25/2013 2/28/2013 2/28/2013 3/11/2013 3/13/2013 3/29/2013 4/15/2013 Company Advanced Micro Devices Inc. Sector Information technology Rating to Rating from B BBB BBBBBBB+ BB BA+ BBB+ A+ BBB+ A-

Laboratory Corp. of America Holdings Health care Frontier Communications Corp J.C. Penney Co. Inc. Sysco Corp. Dun & Bradstreet Corp. NYSE Euronext Inc. Hasbro Inc. Thermo Fisher Scientific Inc. Telecommunications

Consumer discretionary CCC+ Consumer staples Industrials Financials A BBB A

Consumer discretionary BBB Health care BBB

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Table 3

S&P 500 Companies Downgraded In 2013* (cont.)

4/15/2013 5/3/2013 5/16/2013 5/20/2013 5/28/2013 Life Technologies Corp. Hospira Inc. Berkshire Hathaway Inc. Dell Inc. Ingersoll-Rand PLC Health care Health care Financials Information technology Industrials BBB BBBAA BBB BBB BBB+ BBB+ AA+ ABBB+

*Data as of May 31, 2013. Sources: Standard & Poor's Global Fixed Income Research and S&P Capital IQ.

Table 4

S&P 500 Companies Upgraded In 2013*

Date Company Sector Rating to Rating from BBBBB+ B+ BBBBBB+ BBBB+ BB+ BBBBBBBBBBBBBBBBBB+ BBB BBB+ BB+ ABBB-

1/17/2013 Fidelity National Information Services Inc. Information technology 1/25/2013 Lennar Corp. 2/11/2013 Tyson Foods Inc. 2/14/2013 Comcast Corp. 2/21/2013 Host Hotels & Resorts Inc. 3/1/2013 3/8/2013 Leucadia National Corp. Kansas City Southern

Consumer discretionary BBConsumer staples BBB

Consumer discretionary AFinancials Financials Industrials Utilities Utilities Materials BB BBB BBBBBB BBB BBB

3/14/2013 Ameren Corp. 3/18/2013 CMS Energy Corp. 3/27/2013 LyondellBasell Industries N.V. 3/29/2013 Whirlpool Corp. 4/2/2013 Health Care REIT Inc.

Consumer discretionary BBB Financials Healthcare Utilities Utilities BBB ABBB+ A-

4/17/2013 Biogen Idec Inc. 4/23/2013 Public Service Enterprise Group Inc. 5/2/2013 CenterPoint Energy Inc.

5/10/2013 Gap Inc. (The) 5/16/2013 Simon Property Group Inc. 5/20/2013 Prologis Inc.

Consumer discretionary BBBFinancials Financials A BBB

*Data as of May 31, 2013. Sources: Standard & Poor's Global Fixed Income Research and S&P Capital IQ.

Most Constituents Have Stable Rating Outlooks, But Negative Outlooks Are Ticking Upward
The negative bias--the percentage of companies that are at greatest risk of downgrade with a negative outlook or CreditWatch--increased to 14.1% as of May 31 from 13.0% as of Jan. 1. Meanwhile, the positive bias--the percentage of companies with the greatest upgrade potential and have a positive rating outlook or are on CreditWatch--decreased to 6.8% from 8.4%. The positive and negative biases for the index constituents are very near the bias for the overall population of rated companies in the U.S., which have a negative bias of 13.7% as of May 31 and a positive bias of 7.2%. By sector, the index constituents in the financial and consumer staples sectors show the highest negative bias, 26.7%

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

and 22.5%, respectively. The consumer discretionary sector has the highest positive bias of 10.1%, followed by the financial sector with 8.0%. Standard & Poor's assigns a positive or negative rating outlook when it believes that an event or trend has at least a one-in-three likelihood of resulting in a rating action over the intermediate term for investment-grade entities (generally up to two years) and over the shorter term for speculative-grade entities (generally up to one year). Standard & Poor's places a rating on CreditWatch if there is at least a one-in-two likelihood of a rating change within 90 days. Eight companies are potential fallen angels. These entities are rated 'BBB-' and have either negative rating outlooks or are on CreditWatch negative, and they would move to speculative grade from investment grade if Standard & Poor's were to downgrade them, which would likely lead to higher credit costs (see table 5). Of the eight companies, the ratings on Sallie Mae Inc. (formerly known as SLM Corp.) are on CreditWatch negative, and seven companies have negative rating outlooks: Alcoa Inc., Avon Products Inc., First Horizon National Corp., Genworth Financial Inc., Molson Coors Brewing Co., Newfield Exploration Co., and Zions Bancorp. Two index constituents are potential rising stars. These companies are rated 'BB+' with either a positive rating outlook or are on CreditWatch positive, and they would move to investment grade from speculative grade if Standard & Poor's were to upgrade them, which would likely lead to lower credit costs (see table 6). The two companies, Delphi Automotive PLC and Ford Motor Co., each have a positive rating outlook. Corporate funding costs rise considerably when moving down the ratings scale to speculative grade from investment grade. Since a broader mix of investors and institutions can buy and hold investment-grade bonds, companies rated 'BBB-' and higher typically borrow at lower rates than those rated 'BB+' and lower. For example, on May 31, the yield on 'BBB' rated U.S. corporate bonds was 1.3% lower than those on 'BB' rated bonds. Unless otherwise noted, we used financial measures from S&P Capital IQ in the charts and tables in this report. Standard & Poor's Ratings Services makes adjustments to company-reported financials according to its criteria, and the adjusted measures may diverge from those S&P Capital IQ reports. We included the adjusted figures from CreditStats Direct in charts 4 and 5. The S&P 500 is a large-cap index and the most widely followed measure of U.S. equity market performance and corporate profitability (see us.spindices.com for details regarding the S&P 500 Index's construction).
Table 5

Potential Downgrades Of The S&P 500 Index*

Company NYSE Euronext Inc. Cardinal Health Inc. SAIC Inc. BMC Software Inc. H. J. Heinz Co. Dell Inc. Life Technologies Corp. Thermo Fisher Scientific Inc. Sallie Mae Inc. Ticker NYSE:NYX NYSE:CAH NYSE:SAI NasdaqGS:BMC NYSE:HNZ NasdaqGS:DELL NasdaqGS:LIFE NYSE:TMO NasdaqGS:SLM Sector Financials Health care Information technology Information technology Consumer staples Information technology Health care Health care Financials Rating A AABBB+ BBB+ BBB BBB BBB BBBOutlook/CreditWatch CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg CreditWatch Neg

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Table 5

Potential Downgrades Of The S&P 500 Index* (cont.)

Berkshire Hathaway Inc. State Street Corp. The Bank of New York Mellon Corp. United Parcel Service Inc. Wells Fargo & Co. Archer Daniels Midland Co. Rockwell Collins Inc. Southern Co. The Sherwin-Williams Co. AFLAC Inc. American International Group Inc. Bank of America Corp. BB&T Corp. Brown-Forman Corp. Citigroup Inc. Eaton Corp. PLC Lockheed Martin Corp. Lowe's Companies Inc. M&T Bank Corp. Morgan Stanley The Goldman Sachs Group Inc. Carnival Corp. Coca-Cola Enterprises Inc. Kellogg Co. Kohl's Corp. Newmont Mining Corp. Principal Financial Group Inc. SCANA Corp. The Clorox Co. The Western Union Co. Actavis Inc. Capital One Financial Corp. Darden Restaurants Inc. Freeport-McMoRan Copper & Gold Inc. H&R Block Inc. Kraft Foods Group Inc. The Nasdaq OMX Group Inc. The Washington Post Co. Valero Energy Corp. Alcoa Inc. Avon Products Inc. First Horizon National Corp. NYSE:BRK NYSE:STT NYSE:BK NYSE:UPS NYSE:WFC NYSE:ADM NYSE:COL NYSE:SO NYSE:SHW NYSE:AFL NYSE:AIG NYSE:BAC NYSE:BBT NYSE:BF.B NYSE:C NYSE:ETN NYSE:LMT NYSE:LOW NYSE:MTB NYSE:MS NYSE:GS NYSE:CCL NYSE:CCE NYSE:K NYSE:KSS NYSE:NEM NYSE:PFG NYSE:SCG NYSE:CLX NYSE:WU NYSE:ACT NYSE:COF NYSE:DRI NYSE:FCX NYSE:HRB NasdaqGS:KRFT NasdaqGS:NDAQ NYSE:WPO NYSE:VLO NYSE:AA NYSE:AVP NYSE:FHN Financials Financials Financials Industrials Financials Consumer staples Industrials Utilities Materials Financials Financials Financials Financials Consumer staples Financials Industrials Industrials Consumer discretionary Financials Financials Financials Consumer discretionary Consumer staples Consumer staples Consumer discretionary Materials Financials Utilities Consumer staples Information technology Health care Financials Consumer discretionary Materials Consumer discretionary Consumer staples Financials Consumer discretionary Energy Materials Consumer staples Financials AA A+ A+ A+ A+ A A A A AAAAAAAAAAAABBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB BBB BBB BBB BBB BBB BBB BBB BBB BBBBBBBBBNegative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Table 5

Potential Downgrades Of The S&P 500 Index* (cont.)

Genworth Financial Inc. Molson Coors Brewing Co. Newfield Exploration Co. Zions Bancorp. Best Buy Co. Inc. United States Steel Corp. Chesapeake Energy Corp. Iron Mountain Inc. Micron Technology Inc. Netflix Inc. J.C. Penney Co. Inc. NYSE:GNW NYSE:TAP NYSE:NFX NasdaqGS:ZION NYSE:BBY NYSE:X NYSE:CHK NYSE:IRM NasdaqGS:MU NasdaqGS:NFLX NYSE:JCP Financials Consumer staples Energy Financials Consumer discretionary Materials Energy Industrials Information technology Consumer discretionary Consumer discretionary BBBBBBBBBBBBBB BB BBBBBBBBCCC+ Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

*Data, index constituents, and ratings as of May 31, 2013. Potential fallen angel. Sources: Standard & Poor's Global Fixed Income Research and S&P Capital IQ.

Table 6

Potential Upgrades Of The S&P 500 Index*

Company Ameren Corp. AbbVie Inc. ACE Ltd. Comcast Corp. Mastercard Inc. Wisconsin Energy Corp. Corning Inc. Harley-Davidson Inc. KeyCorp Ross Stores Inc. Assurant Inc. Cigna Corp. CSX Corp. Dr Pepper Snapple Group Inc. Fifth Third Bancorp Humana Inc. International Flavors & Fragrances Inc. SunTrust Banks Inc. Ventas Inc. Allegheny Technologies Inc. Anadarko Petroleum Corp. Beam Inc. Lam Research Corp. Whole Foods Market Inc. Delphi Automotive PLC Ford Motor Co. Ticker NYSE:AEE NYSE:ABBV NYSE:ACE NasdaqGS:CMCS.A NYSE:MA NYSE:WEC NYSE:GLW NYSE:HOG NYSE:KEY NasdaqGS:ROST NYSE:AIZ NYSE:CI NYSE:CSX NYSE:DPS NasdaqGS:FITB NYSE:HUM NYSE:IFF NYSE:STI NYSE:VTR NYSE:ATI NYSE:APC NYSE:BEAM NasdaqGS:LRCX NasdaqGS:WFM NYSE:DLPH NYSE:F Sector Utilities Health care Financials Consumer discretionary Information technology Utilities Information technology Consumer discretionary Financials Consumer discretionary Financials Health care Industrials Consumer staples Financials Health care Materials Financials Financials Materials Energy Consumer staples Information technology Consumer staples Consumer discretionary Consumer discretionary Rating BBB A A AAABBB+ BBB+ BBB+ BBB+ BBB BBB BBB BBB BBB BBB BBB BBB BBB BBBBBBBBBBBBBBBBB+ BB+ Outlook/CreditWatch CreditWatch Pos Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

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Credit Trends: S&P 500 Credit Profile: Investment-Grade Companies Gain Share As Debt Levels Climb

Table 6

Potential Upgrades Of The S&P 500 Index* (cont.)

Kinder Morgan Inc. SanDisk Corp. DR Horton Inc. PulteGroup Inc. NYSE:KMI NasdaqGS:SNDK NYSE:DHI NYSE:PHM Energy Information technology Consumer discretionary Consumer discretionary BB BB BBBBPositive Positive Positive Positive

*Data, index constituents, and ratings as of May 31, 2013. Potential rising star. Sources: Standard & Poor's Global Fixed Income Research and S&P Capital IQ.

Table 7

Companies In The 'AAA' And 'AA' Rating Categories In The S&P 500 Index
Company Automatic Data Processing Inc. Exxon Mobil Corp. Johnson & Johnson Microsoft Corp. Apple Inc. General Electric Co. W.W. Grainger Inc. Berkshire Hathaway Inc. Chevron Corp. Google Inc. Merck & Co. Inc. Pfizer Inc. Wal-Mart Stores Inc. 3M Co. Amazon.com Inc. CME Group Inc. Colgate-Palmolive Co. Eli Lilly and Co. Franklin Resources Inc. International Business Machines Corp Procter & Gamble Co. The Coca-Cola Co. Ticker NasdaqGS:ADP NYSE:XOM NYSE:JNJ NasdaqGS:MSFT NasdaqGS:AAPL NYSE:GE NYSE:GWW NYSE:BRK NYSE:CVX NasdaqGS:GOOG NYSE:MRK NYSE:PFE NYSE:WMT NYSE:MMM NasdaqGS:AMZN NasdaqGS:CME NYSE:CL NYSE:LLY NYSE:BEN NYSE:IBM NYSE:PG NYSE:KO Industry Information technology Energy Health care Information technology Information technology Industrials Industrials Financials Energy Information technology Health care Health care Consumer staples Industrials Consumer discretionary Financials Consumer staples Health care Financials Information technology Consumer staples Consumer staples Rating* AAA AAA AAA AAA AA+ AA+ AA+ AA AA AA AA AA AA AAAAAAAAAAAAAAAAAAOutlook/CreditWatch Stable Stable Stable Stable Stable Stable Stable Negative Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable Stable

*Ratings and S&P 500 constituents as of May 31, 2013. Sources: S&P Capital IQ and Standard & Poor's Global Fixed Income Research.

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