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Credit Ratings

(1) Investment Grade

Credit Risk Moody's Standard & Poor's
Highest quality Aaa AAA
High quality Aa AA
Upper medium grade A A
Medium grade Baa BBB

(2) Non-Investment Grade

Credit Risk Moody's Standard & Poor's
Lower medium grade, somewhat speculative Ba BB
Low grade, speculative B B
Poor quality, may default Caa CCC
Most speculative Ca CC
No interest being paid or bankruptcy petition filed C C
In default C D

The price of bonds can and does fluctuate, and any individual bond may experience upward or downward movements. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling bonds. The holder of bonds bears the credit risk of the issuer and has no recourse to Taifook Securities Group Limited and its subsidiaries.

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