Critically Assess the View That Natural Law Is of No Use When Discussing Sexual Ethics Essay

I believe that natural law is of no use when discussing sexual ethics as it is very vague and doesn’t take into account specific situations. Natural Law says that everything has a purpose, and that mankind was made by God with a specific design or objective in mind. It says that this purpose can be known through reason. As a result, fulfilling the purpose of our design is the only ‘good’ for humans. The Primary Precepts of Natural Law require us to ‘live in an ordered society’ to ‘reproduce’, to ‘educate our young’, to ‘protect the innocent’ and the most important to ‘worship God’. The most relevant of these in this subject is reproduction, and if you look at it as a duty to continue the re-population of God’s people than of course sex can be understood as a good and moral action. In fact there are many biblic references to sex and Gods opinion on it, in Genesis He says; ‘be fruitful and increase in number’ and through-out it shows that sex is necessary. The problem for a Natural Law supporter comes when sex is only done as an ‘efficient’ cause, e. g. or pleasure and enjoyment, this is not following God’s final cause of re-production. Contraception is seen as immoral in Natural law and for most Catholics. If contraception is used it splits the ‘efficient’ practice of sex from the ‘final cause’ of reproduction; this goes against that actions purpose and makes it wrong as not what God intended. However some Natural Law supporters would argue that sex is not about what humans gain from it but what God actually intended it to be about, which could be unity and love etc. Other philosophers/philosophies who argue that this way of thinking about contraception and sex can lead to situations of unnecessary suffering. For example, a utilitarian approach would assess how pain and pleasure can be maximised in a situation and so would probably sharply contrast with Natural Law. Another thing to consider when thinking about natural law and contraception is that they don’t take into account third world countries, for example, and how not using contraception will lead to a spreading of aids and children the parents can’t afford to give a good life. Homosexuality is another sexual issue that Natural Law calls immoral for the same reason as contraception, because it doesn’t fill in sex’s final cause and reproduction and so homosexual sex cannot produce any children it is not ethical. The Catholic Church has long supported this view and have declared that homosexual orientation is not in itself immoral but just like the infertile couple sex without the possibility of children makes it wrong. However another thing to consider as part of the ‘living in an ordered society’ precept is not being judgmental of other people. Pre-marital sex could be seen as either good or bad by natural law followers as if the couple is reproducing and being good nurturing parents then they’re fulfilling most of the primary precepts and that is good. However they aren’t fulfilling the main one, worshiping God, as the bible teaches that sex should be saved for marriage, so a lot of natural law followers would say it is wrong. Something to consider in this is if they’re actually planning to get married at all? Does it still count as pre-marital? Extra marital sex is also a contentious issue for Natural Law followers. In a wedding ceremony promises are made before God ‘to love and to cherish’ and most importantly ‘forsaking all others’ to stay married until ‘death do us part’. As a vow before God, this cannot be broken and still be part of the primary precept ‘worship’ God. The ultimate aim of life is to be ‘united with God’ through our moral actions, as society where immorality and deception are accepted is not a place where God is being worshipped effectively. Sex should be about reproduction and families and therefore bringing you closer to God not a violation of a sacred vow. To conclude, I would argue that Natural law is an overly harsh method of making ethical decisions. It does not take into account the most loving action for people and nor does he make any exception for circumstance or what will benefit the majority of people.

Peoplesoft Messaging Server

Contents PeopleSoft Messaging Server Settings Guide1 Contents2 Introduction Introducing the PeopleSoft Messaging Server3 Messaging Server Processes4 Configuring Messaging Servers in PSADMIN4 Understanding Dispatcher Parameters5 Understanding Handler Parameters7 Understanding Integration Broker Parameters8 Minimum and Recommended Values. 9 Edit History10 Introduction Introducing the PeopleSoft Messaging Server PeopleSoft Messaging Services exist on the application server and are the heart of the Integration Broker.Before using Integration Broker, you must configure and start the Messaging Server, aka PUB/SUB. Although the server processes devoted to your messaging system are all part of the larger application server domain, they comprise a distinct set of processes that aren’t involved with the ordinary transactions associated with PIA connections. Six processes of two different types, dispatchers and handlers, are combined in pairs to produce the messaging servers needed for t ransmitting messages throughout your messaging system. Each messaging server is a different type.A set of three — a publication broker, a publication contractor, and a subscription contractor — constitute the messaging server set required by Integration Broker. Following is a listing of the generic names for the processes: Messaging ServerDispatcher NameHandler Name Publication Broker (BRK)PSBRKDSPPSBRKHND Publication Contractor (PUB)PSPUBDSPPSPUBHND Subscription Contractor (SUB)PSSUBDSPPSSUBHND PeopleSoft delivers default PUB/SUB services with _dflt added to the above naming convention. For example PSBRKDSP_dflt. It is recommended that you use these services unless you have a specific need for dedicated handlers.To boot PUB/SUB use PSADMIN to configure your domain and simply answer Y to the following question at the end of the configuration process: Command to execute (1-7, q) : 4 Do you want the Publish/Subscribe servers configured (y/n)? [y]:y For typical implementa tions, there is no need to configure custom or additional dedicated messaging servers as the default messaging services will handle all basic messages. Please see the last section of this guide for recommended values More information about managing the application server can be found in the PeopleSoft Server Tools Administration Peoplebook.Additional Information available in Peoplebooks under: Home > PeopleBooks Library > PeopleSoft Integration Broker > Configuring the Messaging Messaging Server Processes There are a variety of server processes devoted to application messaging. If you are not implementing the application messaging technology then you may skip through the delivered, default server processes. The delivered server processes are: †¢PSBRKDSP †¢PSBRKHND †¢PSPUBDSP †¢PSPUBHND †¢PSSUBDSP †¢PSSUBHND These server processes act as brokers, dispatchers, and handlers of the messages in your messaging system.For the purposes of this paper we will div ide these into two categories: Dipatchers and Handlers. Configuring Messaging Servers in PSADMIN This section provides overviews of messaging server configuration, dispatcher parameters, and handler parameters. Understanding Messaging Server Configuration Once you create dedicated messaging servers, you must configure their dispatcher and handler processes so they boot when you start the application server. You configure these processes using PSADMIN just as you do any other server process that runs on the application server.Before you attempt to configure additional messaging server processes, you should be familiar with the other server processes that run on the application server. For more information, please see Peoplebooks Working With PSADMIN Menus. As stated earlier, two types of server processes comprise each messaging server: a dispatcher and a handler. Each process type requires you to set a different set of parameters. Most of the parameters are similar to other server pr ocesses, such as PSSAPPSRV, but some parameters are specific to messaging servers. Note.The following sections also apply to the _dflt messaging server processes. Only one parameter is different between a dedicated messaging server process and its _dflt counterpart: the Channels parameter, which enables you to add message channels to the channel list. The _dflt server processes can’t be associated with any specific message channel. Understanding Dispatcher Parameters There are three generic process types that are the basis for all dispatcher processes: †¢PSBRKDSP — the publication broker dispatcher. †¢PSPUBDSP — the publication contractor dispatcher. PSSUBDSP — the subscription contractor dispatcher. The following parameters apply to all three process types. Recycle Count Specifies the number of times each dispatcher process will be executed before being terminated (intentionally) by the system and then immediately restarted. Servers must be int ermittently recycled to clear buffer areas. The time required to recycle a server is negligible—occurring in milliseconds. Recycle Count does not translate into a native Tuxedo parameter in the PSAPPSRV. UBB file. Instead the value is stored in memory and is managed by the system.Allowed Consec Service Failures This option allows for dynamic server process restarts in the event of service failures. To enable this option, enter a number greater than zero, and to disable this option enter 0. The default value for this parameter is 2. The value you enter is the number of consecutive service failures that will cause a recycle of the server process. This is a catchall error handling routine that allows a dispatcher to terminate itself if it receives multiple, consecutive, fatal error messages from service routines.Such errors should not occur consecutively, but if they do it indicates that the server process needs to be recycled or cleansed. A â€Å"Retry† message appears w hen the number of service failures you specified occurs. Handler Status CheckcountHandler check count is used to determine how often the dispatcher should look to get the number of associated handlers. The value of Handler Status Checkcount is the number of cycles that the dispatcher will perform before reading the MIB and getting the number of associated handlers. This comes into play when the number of handlers change (add more, some crash etc. by having the proper count , the dispatcher can queue up messages to the handler more efficiently. Also if there are no handlers, then the dispatcher will not queue up any publications causing the application server log to fill up. For 8. 4 it is simply used to determine if there are any handlers, and if not don't send the message to the handler. This is to eliminate any the informational messages in the appserv. log if the handlers are down. For 8. 42 it is used to merely look at see if any associated handler is booted. Going forward 8. 3 it will be used as one of the determinate of how much work should the dispatcher send out at one time. Scan IntervalSpecifies the number of seconds between scans of the work queue when idle. The scan interval is necessary to detect messages published from two-tier connections, because when a message is in the queue the broker server doesn’t receive a notice of the publication. A scan interval is required to make sure that two-tier messages get processed in a timely manner. The scan interval is analogous to the Process Scheduler polling the Process Request table.In addition, the scan interval detects messages that have been resubmitted after an error, for example. Decreasing the scan interval will decrease latency for two-tier publishes and error recovery Ping RateUsed for PSPUBDSP only. After this many seconds of inactivity, the server will scan the database queues and restart any stalled/crashed items. The scan rate and Ping rate (as percentage) will determine the actual int erval for pinging any unavailable remote nodes (algorithm used: Attempts * Ping Rate * Scan Inteval).Maximum Ping IntervalThe maximum Ping Interval (in Hours) is the maximum interval between subsequent attempted pings of any unavailable remote nodes. Memory Queue Refresh Rate PeopleSoft Integration Broker maintains current asynchronous messaging queues in system memory for quick access. On rare occasions these cached queues can become corrupted, at which point they must be refreshed from the Integration Broker data tables. The likelihood and frequency of cache corruption depends on a combination of factors specific to your messaging system.If you need to periodically refresh the in-memory queues, you can use this parameter to tailor the frequency of the refresh to fit your situation. Each dispatcher on your system has its own queue. For each queue you set the rate equal to the number of dispatch attempts that must occur before the queue is refreshed. The refresh occurs only when the specified number of dispatch attempts is reached for a given message channel. For example, with a memory queue refresh rate of 8, multiple channels could have up to seven dispatch attempts each without triggering any refresh.The following settings are also significant: †¢A setting of 0 disables the refresh altogether. This is the default value. A setting of 1 triggers a refresh immediately after every dispatch attempt, effectively disabling memory caching. Restart Period Specifies the number of seconds between restart attempts on Started items in the work queue. An item which stays in Started state for more than a few seconds might be stalled — for example, the service request might have been lost, or the handler might have crashed. Decreasing the restart period will reduce the latency for recovering stalled items with a status of Started.However, under high load, items might stay in the Started state longer than normal for valid reasons — all the handlers might be busy, and the handler service request for the item might be queued at the Tuxedo level. Setting the restart period too low will result in redundant restarts — the dispatcher will dispatch the item again, even though the original request is still in the Tuxedo queue. A small number of extra restarts is benign, but at higher volumes, the unnecessary restarts can fill up the queue and block real requests.The formula for a reasonable value for the Restart Period is: ((incoming requests per second) / (# of handlers)) * (average processing time per request) For example, if you have an incoming rate of twenty per second, and you have four handlers, each handler will be busy processing one item and will have four others waiting in the queue. A new item will have to wait for the currently processing item, plus the four enqueued items, before it will be processed. If each item takes 10 seconds to process, the new item will stay in â€Å"started† status for approximately 50 se conds before the handler works on it.If it stays in â€Å"started† status longer, it's likely that the request to the handler has been lost, and the item should be restarted. Understanding Handler Parameters There are three generic process types that are the basis for all handler processes: †¢PSBRKHND — the publication broker handler. †¢PSPUBHND — the publication contractor handler. †¢PSSUBHND — the subscription contractor handler. The following parameters apply to all three process types. Min Instances Specifies the number of handler server processes started at boot time. Max Instances Specifies the maximum number of handler server processes that can be started or spawned.Service Timeout Specifies the number of seconds a handlers waits for a service request before timing out. Service Timeouts are recorded in the TUXLOG and APPSRV. LOG. In the event of a timeout, the handler terminate itself and Tuxedo automatically restarts the process. Re cycle Count Specifies the number of times the system executes each server before PeopleSoft intentionally terminates the process. Server processes must be intermittently recycled to clear buffer areas. The time required to recycle a server is negligible—occurring in milliseconds. Recycle Count does not translate into a native Tuxedo parameter in the PSAPPSRV.UBB file. Instead the value is stored in memory and is managed by PeopleSoft. Allowed Consec Service Failures This option allows for dynamic server process restarts in the event of service failures. To enable this option, enter a number greater than zero, and to disable this option enter 0. The default for this parameter is 2. The numerical value you enter is the number of consecutive service failures that will cause a recycle of the server process. This is a catchall error handling routine that allows a handler to terminate itself if it receives multiple, consecutive, fatal error messages from service routines.Such error s should not occur consecutively, but if they do it indicates that the server process needs to be recycled or cleansed. A â€Å"Retry† message appears when the number of service failures you specified occurs. Max Retries Specifies the maximum number of times the server should attempt to restart a failed action. This parameter prevents a bad item from continuously crashing a handler process — its counter is incremented when the handler sets the status to â€Å"working,† but before it actually starts processing the item. Understanding Integration Broker Parameters The following parameters applies to the Integration Broker technology.Min Message Size for Compression The Min Message Size for Compression parameter enables you to configure the threshold of message before the system compresses the message. Local Compression The integration engine compresses and base64 encodes messages destined for the PeopleSoft listening connector on its local integration gateway, bas ed on a setting for the application server domain in the PSAPPSRV. CFG file, which you can configure using the PSADMIN utility. The setting is a threshold message size, above which messages will be compressed. PSADMIN presents the setting as follows: Values for config section – Integration BrokerMin Message Size For Compression=10000 Do you want to change any values (y/n)? [n]: The value is the message size in bytes; the default value is 10000 (10 KB). You can specify a setting of 0 to compress all messages. See Understanding Application Server Domain Parameters. Note. This setting has no effect on the compression of messages that the integration gateway sends using its target connectors. Information Set Profiling information for both Sync and Async processing External Configuration Set External Configuration =Y if you run the Pub/Sub processes on a different domain then where the appserver processes are run for PIA/ PORTAL.This will enhance the Integration Broker performance for Asynchronous processing Minimum and Recommended Values. Specific application server tuning needs vary by customer site based on volume and server capacity. Requests for tuning issues and assistance should be addressed to Peoplesoft Consulting. However, some specific information is available below: PSAPPSRV should have a minimum of 3 instances booted when starting Pub/Sub. PSBRKDSP/HND settings should be sized up. A minumum of 3 instances should be used for all application messaging scenarios. For one particular customer I recommend increasing the PSBRKHND settings to 10/10.Same with the PUB and SUB handler settings: set min/max of 10/10. Other customers have used as many as 20 instances for PSSUBHND. This is generally a tuning issue, and settings vary greatly from site to site. Recycle count: For dispatchers this should always be 0. For Handlers this can be 0, or reduced based on need. A single handler is restarting itself after this number services (this is not the number mess ages, but the number of calls from the tuxedo service). Setting this too low can create performance problems. When a service recycles itelf, all requests must wait for the handler to come back up and re-submit.It is generally recommended using 0 for this value. Otherwise a high number like 100,000 is recommended unless memory problems are encountered in which case this value can be lowered. Restart Period. Since restart period controls how long before a started item will be resubmitted, dispatcher requests may be resubmitting themselves over and over again resulting in a higher queue number. This can be adjusted by changing Restart Period=5 to a higher number. Customers will need to play with this and monitor results, but setting this to 120 would be better than the delivered 5 second interval, especially when using a lower value recycle count.

Global Chemical Industry

www. moodys. com Rating Methodology Table of Contents: Summary About the Rated Universe About This Rating Methodology The Key Rating Factors Assumptions and Limitations and Rating Considerations That are not Covered in the Grid Conclusion: Summary of the GridIndicated Rating Outcomes Appendix A: Global Chemcial Industry Methodology Factor Grid Appendix B: Methodology GridIndicated Ratings Appendix C: Observations and Outliers for Grid Mapping Appendix D: Chemical Industry Overview Appendix E: Key Rating Issues over the Intermediate Term 1 3 5 8Corporate Finance December 2009 Moody’s Global Global Chemical Industry Summary This rating methodology explains Moody’s approach to assessing credit risk for global chemical companies. This document replaces a previous publication from February 2006. The grid for the rating methodology is substantially unchanged from the 2006 publication, with minor updates to provide greater clarity regarding application of the grid. We also hav e provided a clearer explanation of how ratings in the chemical industry are derived.This publication is intended to provide a reference tool that can be used when evaluating credit profiles within the global chemical industry, helping issuers, investors, and other interested market participants understand how key qualitative and quantitative risk characteristics are likely to affect rating outcomes. This methodology does not include an exhaustive treatment of all factors that are reflected in Moody’s ratings but should enable the reader to understand the qualitative considerations and financial ratios that are most important for ratings in this sector.This report includes a detailed rating grid and illustrative mapping of each rated company in a representative sample of companies against the factors in the grid. The purpose of the rating grid is to provide a reference tool that can be used to approximate credit profiles within the chemical industry sector. The grid provides summarized guidance for the factors that are generally most important in assigning ratings to chemical companies. The grid is a summary that does not include every rating consideration, and our illustrative mapping uses historical results while our ratings methodology also considers forward-looking expectations.As a result, the grid-indicated rating is not expected to match the actual rating of each company. 17 18 19 20 21 26 27 Analyst Contacts: New York 1. 212. 553. 1653 William Reed Vice President -Senior Credit Officer John Rogers Senior Vice President James Wilkins Vice President -Senior Analyst Steven Wood Senior Vice President Tokyo 81. 35408. 4100 Noriko Kosaka Vice President -Senior Analyst Analyst Contacts continued on last page Rating Methodology Moody’s Global Corporate Finance Global Chemical IndustryThe grid contains five key factors that are important in our assessments for ratings in the global chemical sector: 1. Business Profile 2. Size & Stability 3. Cost P osition 4. Leverage / Financial Policies 5. Financial Strength Each of these factors also encompasses a number of sub-factors or metrics, which we explain in detail. Since an issuer’s scoring on a particular grid factor often will not match its overall rating, in the Appendix we include a brief discussion of â€Å"outliers† – companies whose grid-indicated rating for a specific factor differs significantly from the actual rating.This rating methodology is not intended to be an exhaustive discussion of all factors that Moody’s analysts consider in ratings in this sector. We note that our analysis for ratings in this sector covers factors that are common across all industries (such as ownership, management, liquidity, legal structure in the corporate organization, and corporate governance) as well as factors that can be meaningful on a company specific basis. Our ratings consider qualitative considerations and factors that do not lend themselves to a transp arent presentation in a grid format.The grid represents a compromise between greater complexity, which would result in grid-indicated ratings that map more closely to actual ratings, and simplicity, which enhances a transparent presentation of the factors that are most important for ratings in this sector most of the time. Because this methodology applies globally, it is necessarily general in some respects and is not intended to be an exhaustive and country-specific discussion of all factors that Moody’s analysts consider in every rating.Moody’s rating approach considers country-specific differences and at the same time allows for qualitative evaluation of these factors as well as other factors that cannot be easily presented in grid format. Highlights of this report include: ? ? ? An overview of our rated universe. A description of the key factors that drive rating quality. Comments on the rating methodology’s assumptions and limitations, including a discussio n on other rating considerations that are not included in the grid.The Appendices show the rating grid criteria on one page (Appendix A), tables that illustrate the application of the methodology grid to 20 representative rated chemical companies (Appendix B) with explanatory comments on some of the more significant differences between the grid-implied rating and our actual rating (Appendix C), a brief industry overview (Appendix D), and a discussion of key rating issues for the chemical sector over the intermediate term (Appendix E). 2 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate FinanceGlobal Chemical Industry About the Rated Universe Moody's rates 107 companies globally in the chemicals and allied industries. In the aggregate, these issuers have approximately $230 billion of rated debt. Our definition of the chemical industry includes a variety of related industrie s, such as: ? ? ? ? ? ? ? ? ? ? ? ? Commodity organic and inorganic chemicals ? Specialty chemicals ? Plastics, resins and elastomers ? Fertilizers, agricultural chemicals and seeds ? Industrial gases ? Architectural and industrial coatings ? Flavors and fragrances ? Other food ingredients ? Pharmaceutical intermediates ?Organometallics ? Specialty materials produced from refinery by-products ? Specialty materials that are used in composites ? These companies develop and produce a wide variety of products including basic chemicals, specialty materials, and industrial gases. Products range from true commodities to highly customized products used in technically demanding applications. The rated universe is spread throughout the world with the highest concentrations in the Americas (68), Europe (24) and Middle East/Asia (15). Companies range in size from as large as $40 billion in revenues to as small as $100 million.Some may be multinational with numerous manufacturing locations aroun d the globe, while others may operate a single facility with domestic customers only. The highly volatile nature of the industry as well as fairly high levels of business risk make it increasingly difficult for all but a select few companies who are extremely large and diversified to achieve and maintain a Aa rating. Ratings of A3 or above are generally limited to larger companies or to smaller specialty companies that exhibit uncommon stability in financial performance and relatively low business risk.The Corporate Family Rating (CFR) or senior unsecured ratings of the covered issuers range from Aa2 to Caa2 with a concentration in the Baa, Ba and B rating categories. The median rating for chemical companies is Ba1. The vast majority of companies – 81 out of 107, approximately 76%, are in the Baa (27), Ba (26), and B (28) range because of the cyclical nature of the industry and our view of the industry’s moderate to high business risk. 3 December 2009 ? Rating Methodol ogy ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate FinanceGlobal Chemical Industry Exhibit 1: Global Chemical Rating Distribution 2009 and 2006 Chemical Industry Ratings Distribution 25 Number of Issuers 20 15 10 5 0 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 Ratings 2009 – 107 com panies 2006 – 111 com panies B1 B2 B3 Caa1 Caa2 Caa3 Over the last ten years, in Europe and in the US, a growing number of speculative grade names have been added to the rated universe. This is attributable in part to incumbents' recent strategic efforts to focus on their core businesses by selling non-core assets as well as to a growing interest from private equity sponsors.For the purpose of this methodology we have identified 20 representative issuers out of the companies that we rate globally. These issuers represent both investment grade and speculative grade issuers. The criteria used to select the 20 focu sed on the larger, in terms of revenues, well-known issuers. For this reason the proportion of investment grade to non-investment grade issuers represented is higher than it is in the rated universe. 4 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate FinanceGlobal Chemical Industry Exhibit 2 Global Chemical Rating Methodology Representative Sample Company Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Shin-Etsu Chemical Company Ltd BASF (SE) E. I. du Pont de Nemours and Company Kaneka Corporation Teijin Limited Bayer AG Akzo Nobel N. V. Potash Corporation of Saskatchewan Inc. Rating Aa3 A1 A2 A2 A3 A3 Baa1 Baa1 Baa1 Baa2 Baa2 Baa3 Ba1 Ba2 Ba3 Ba3 B1 B1 B1 B3 Outlook Stable Stable Negative Stable Negative Stable Negative Stable Stable Stable Stable Negative Stable Positive Stable Stable Stable Stable Positive NegativeApprox Debt millions $189 $21,347 $7,545 $293 $ 2,143 $20,215 $5,233 $3,082 $2,716 $1,441 $1,971 $23,073 $4,456 $3,390 $3,156 $1,217 $1,904 $4,681 $423 $3,451 LG Chem, Ltd. Eastman Chemical Company Yara International ASA The Dow Chemical Company Braskem SA Celanese Corporation Nalco Company ISP Chemco LLC NOVA Chemicals Company Huntsman Corporation PolyOne Corp Hexion Specialty Chemicals Inc. About This Rating Methodology This report explains the rating methodology for chemical companies in six sections, which are summarized as follows: 1.Identification of Key Rating Factors The grid in this rating methodology focuses on five key rating factors. These five broad factors are further broken down into eleven sub-factors that are equally weighted. 5 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry Factor Weighting Sub-Factor Weighting Rating Factor Relevant Sub-factor Operational Diversity Product Diversity Geographic Diversity Factor 1: Business Profile 9. 09%Commodity/Specialty Market Shares Raw Material Access Government Impact Revenues 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% 9. 09% Factor 2: Size & Stability 27. 27% Divisions of Equal Size Stability of EBITDA Factor 3: Cost Position 18. 18% EBITDA Margin (5 yr Avg. ) ROA – EBIT / Avg. Assets (5 yr Avg. ) Factor 4: Leverage / Financial Policies 18. 18% Current Debt / Capital* Debt / EBITDA (5 yr Avg. )* EBITDA/ Interest Expense Factor 5: Financial Strength 27. 27% Retained Cash Flow/Debt (5 yr Avg. )* Free Cash Flow (FCF) /Debt (5 yr Avg. * *Where appropriate net adjusted debt may be used (see discussion of Cash Balances and Net Debt Considerations) 2. Measurement of the Key Rating Factors We explain below how the sub-factors for each factor are calculated. We also explain the rationale for using specific rating metrics, and the ways in which we apply them during the rating process. Mu ch of the information used in assessing performance for the sub-factors is found in or calculated using the company’s financial statements; others are derived from observations or stimates by Moody’s analysts. Moody’s ratings are forward-looking and incorporate our expectations of future financial and operating performance. We use both historical and projected financial results in the methodology and the rating process. Historical results help us to understand patterns and trends for a company’s performance as well as for peer comparison. While the rating process includes both historical and anticipated results, this document makes use of historical data only to illustrate the application of the rating methodology.Specifically, unless otherwise stated, the mapping examples in this report use reported financials for the last three audited fiscal years. All of the quantitative credit metrics incorporate Moody’s standard adjustments to income statemen t, cash flow statement and balance sheet amounts for, among others, off-balance sheet accounts, receivable securitization programs, under-funded pension obligations, and recurring operating leases. Note: For definitions of Moody's most common ratio terms please see Moody’s Basic Definitions for Credit Statistics, User’s Guide which can be found at www. oodys. com in the Research and Ratings directory, in the Special Reports subdirectory (07 June 2007, document #78480/SP4467). 3. Mapping Factors to the Rating Categories After identifying the measurements for each factor, the potential outcomes for each of the 11 sub-factors are mapped to a broad Moody’s rating category. (Aaa, Aa, A, Baa, Ba, B, Caa, Ca). 6 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry 4.Mapping Issuers to the Grid and Discussion of Grid Outliers In t his section (Appendix C) we provide tables showing how each company maps to grid-indicated ratings for each rating sub-factor and factor. The weighted average of the sub-factor ratings produces a grid-indicated rating for each factor. We highlight companies whose grid-indicated performance on a specific sub-factor is two or more broad rating categories higher or lower than its actual rating and discuss general reasons for such positive outliers and negative outliers for a particular factor or sub-factor. . Assumptions and Limitations and Rating Considerations That are not Included in the Grid This section discusses limitations in the use of the grid to map against actual ratings, additional factors that are not included in the grid that can be important in determining ratings, and limitations and key assumptions that pertain to the overall rating methodology. 6. Determining the Overall Grid-Indicated Rating To determine the overall rating, we convert each of the 11 factor ratings in to a numeric value based upon the scale below.Aaa 6 Aa 5 A 4 Baa 3 Ba 2 B 1 Caa 0 Ca -1 The numerical score for each factor is weighted equally with the results then summed, and divided by 11, to produce a total factor score. The total factor score is then mapped back to an alphanumeric rating based on the ranges in the table below. Grid-Indicated Rating Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca Total Factor Score X ? 5. 50 5. 17 ? X ; 5. 50 4. 83 ? X ; 5. 17 4. 50 ? X ; 4. 83 4. 17 ? X ; 4. 50 3. 83 ? X ; 4. 17 3. 0 ? X ; 3. 83 3. 17 ? X ; 3. 50 2. 83 ? X ; 3. 17 2. 50 ? X ; 2. 83 2. 17 ? X ; 2. 50 1. 83 ? X ; 2. 17 1. 50 ? X ; 1. 83 1. 17 ? X ; 1. 5 0. 83 ? X ; 1. 17 0. 50 ? X ; 0. 83 0. 33 ? X ; 0. 50 0. 17 ? X ; 0. 33 0. 0 ? X ; 0. 17 x ; 0. 0 7 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry For e xample, an issuer with a composite weighted factor score of 1. 5 would have a Ba2 grid-indicated rating. We used a similar procedure to derive the grid-indicating ratings in the tables embedded in the discussion of each of the five broad rating factors. The Key Rating Factors Moody’s analysis of chemical companies focuses on five broad factors: ? ? ? ? ? Business Profile Size & Stability Cost Position Leverage / Financial Policies Financial Strength Factor 1: Business Profile (9. 09% weight) Why It Matters Business Profile is an important indicator of credit quality.The chemical team at Moody's looks at seven factors and aggregates them into a single score which is then mapped to a specific rating. The first three factors focus on diversity. Diversity, whether it be operational, product, or geographic, is a key component of business position that, can help mitigate the volatility in financial performance characteristic of the chemical sector. 1. Operational Diversity Single s ite locations, as an indicator of operational diversity, can expose a company to the prospect of unanticipated down times.We note that this factor is extremely important. Where a company operates a single site, the risk of that single site failing is deemed to have such a catastrophic impact on the business model that even the prospect of site insurance or business interruption insurance will not provide sufficient mitigation against the potential effects of a fundamental failure of the site. 2. Diverse Product Lines Diverse product lines can help stem volatility in cash flows to the extent that different products can have varied pricing dynamics. 3. Geographic DiversityGeographic diversity can also be beneficial as a company with multiple plant sites can still be negatively affected by both economic and weather related events. 4. Commodity Versus Value Added Products In the chemical sector commodity players are typically more volatile in terms of cash flow generation whereas the va lue added producers often produce more stable cash flows. At times, today's value added producers can become more commodity-like in their cash flow generating capabilities, so we will carefully assess where a product or group of products may be in its life cycle. 5.Market Share or Unique Competitive Advantage Large market share suggests a sustainable business position with the proven ability to weather the volatile market conditions in the chemical cycle. In some instances companies with large market shares will adjust their production volumes to help balance the supply and demand dynamics in the markets served as a means to stabilize product pricing. Market share that is protected by patent and unique licensing restrictions can also be a strong, positive contributor to stable cash flows and performance. 8 December 2009 ? Rating Methodology ?Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Che mical Industry 6. Exposure to Volatile Raw Materials Raw material exposures greater than 33% in terms of cost of goods sold, for example, can often result in dramatic swings in cash flow. This is especially true in times of supply/demand imbalances, which can create shortages in raw materials and exaggerate raw material price movements. Companies with the ability and foresight to locate their production facilities in areas of the world where they can benefit from long term fixed riced raw materials have a distinct advantage over companies that are subject to the vagaries of the raw material spot markets. 7. Impact of Government Regulation The final factor we assess is the positive or negative impact of government regulation. This factor addresses the positive or negative role that government regulation or policy may have on an individual company or sector of the chemical industry. For many companies, the impact of government regulation may be neutral. For some sectors, such as the e thanol sector in the U. S. the very existence of the sector is a function of government legislated policy. In still other instances, the government has sought to ban the use of certain products – such as MTBE – in some markets. This factor is also extremely important and we will, as explained below, overweight it when assessing companies for whom government regulations/mandates are, essentially, the sole driver for the business model. How We Measure it for the Grid The 7 Business Profile criteria are merged into an assessment score, as follows: Business Profile Assessment Score This score is made up of seven criteria.To each we assign a discrete numerical value. The values across the criteria range from (-2) to 2 with many coming in at 0 or 1. Moody's analysts may use a modifier of 0. 5 across the seven criteria to refine the score relative to other companies in the industry. These values are totaled into a score which is then mapped to a rating category in the followi ng manner: Aaa Aa A Baa Ba B Caa Ca = = = = = = = = > 6. 0 > 4. 5 to < 6. 0 > 3. 5 to < 4. 5 > 2. 5 to < 3. 5 > 1. 5 to < 2. 5 > 0. 5 to < 1. 5 > – 0. 5 to < 0. 5 < – 0. 5 ?Operational diversity – We count the number of discrete operating plants that have a globally competitive scale. A (-2) is assigned for 1 or 2 plants, a 0 is assigned for 2 – 8 plants and a 1 is assigned if there are greater than 8 large manufacturing locations. This is one of three factors with a negative score given the importance we assign to operational diversity. A sole site simply leaves the company with too many eggs in one basket. Product diversity – We assign a 0 if a majority of cash flow is generated from 1-2 key product lines and a 1 if a company relies on 3 or more product lines or product categories.Geographic diversity – We assign a 0 if a majority of the production assets are primarily in a single geographic region and assign a 1 if production assets are i n multiple regions Commodity versus value added products – We assign a 0 if a majority of sales are primarily commodity products and assign a 1 if we view products as adding distinct unique additional value. Quantitative factors such as stability of EBITDA and EBITDA margins are used later as another component in the measurement of this important factor. ? ? ? 9 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical IndustryRating Methodology Moody’s Global Corporate Finance Global Chemical Industry ? Market share – We assign a 0 if a market share is inconsequential relative to the next three largest competitors and assign a 1 if a sector or company has large share or few real competitors. We would assign a 2 if the company has a unique competitive advantage (patents, know-how, etc. ) that could reduce competition significantly. Market share assessments are driven by the definition of the markets served. Definitions should be wide enough to represent legitimate alternative products.Raw material access – We assign a (-1) or (-2) if we estimate exposure to volatile raw material costs at greater than 33% of costs of goods sold. We assign a 0 if exposure to volatile raw materials costs is from 10% to 33% of costs of good sold. We assign a 1 if the exposure to raw materials is less than 10% and a 2 if the company has a material, demonstrable, long-lived feedstock advantage. Given the importance of raw material inputs to ultimate cash flows this metric is vitally important. It is one of three metrics with a possible negative value. Given the importance of this metric, the value can go as high as 2.Impact of governmental regulations or policies – For companies subject to significant government regulations or sensitive to changes in government policies, we assign a score reflecting the positive or negative impact of these regulations/policies on the companies' long term financial perform ance. Most of the companies in this industry will score a 0. Ethanol producers in the US would be assigned a (-1) because of their reliance on government regulation to create demand for the product. Companies that would be positively affected over the long term by government regulations could be assigned a 1. ? The importance of the business profile score is highlighted by the fact that, in certain cases, it can outweigh all other factors in the methodology, materially lowering ratings. The two most prominent examples are: operations limited to a single site and a business model whose success is highly or solely dependent on government actions or policies. Factor 1: Business Profile (9. 09%) Weight a) Business Position Assessment 9. 09% Aaa ? 6. 0 Aa 4. 5 – 6. 0 A 3. 5 – 4. 5 Baa 2. 5 – 3. 5 Ba 1. 5 – 2. 5 B 0. 5 – 1. 5 Caa – 0. 5 – 0. 5 Ca ; – 0. 5A chart that illustrates grid mapping results for Factor 1 and a discussion of o utliers for companies in the sample is included in Appendix C. Factor 2: Size & Stability (27. 27% weight) Why It Matters This factor includes discrete quantitative measures that attempt to measure size, diversity and the stability of a business model. Large revenues combined with large divisions as well as a long history of stable performance suggest sustainable business positions that have been and will be able to demonstrably weather the vagaries of capital and economic cycles. SizeSize can suggest the ability to benefit from much needed economies of scale both in production and access to raw materials on a preferred basis. In addition, size suggests the ability to service large customers globally — an important attribute as many customers step up efforts to reduce the number of their suppliers. Size also tends to favor the companies that sovereigns, government related entities, and other large companies choose as their joint venture partners or technology suppliers of che micals that add important value added properties to customer’s products. Number of DivisionsThe presence of multiple large divisions typically signals a balanced diversified product portfolio and, by extension, more stable cash flows. Companies with high product concentration may exhibit more volatile cash flows and may be more vulnerable to one time events that can be damaging to credit quality. Multiple divisions also provide for discrete assets that can be sold as necessary to provide alternate liquidity. Larger companies 10 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate FinanceGlobal Chemical Industry with many divisions can, for example, sell weaker performing or non-core segments, with the sale proceeds providing funding for debt reduction or growth in other segments. Stability of Business Model (Stability of EBITDA) Given the diversity of this industry, we attempt to gauge the likely level of volatility in earnings and cash flow. Companies with elevated levels of volatility in earnings and cash flow will require better liquidity and more robust financial metrics, on average, to compensate for uncertainty over the magnitude and duration of potential downturns.We analyze the volatility of EBITDA over a long period of time (7-10 years, when the data is available) to get an estimation of the expected volatility of the company relative to its peers in the industry. While there are many problems associated with the use of EBITDA as a measure of either profitability or cash flow, EBITDA is typically less affected by extraordinary items, fluctuations in working capital, and capital spending on new capacity than other measures of cash flow. It also allows us to remove the potential impact from differences in capital intensity across the industry.To the extent that a company's EBITDA may contain unusual items, or items that we judge to be one- time, the reported data may be adjusted to improve the quality of the analysis and hence get a better view of the true volatility of the company relative to its peers in the industry. When companies have completed a transformational acquisition or divestiture, or if seven years of data is otherwise unavailable, we estimate this metric based on a comparison to other rated companies and attempt to adjust for differences in product or geographic mix, as well as the impact of feedstock advantages or disadvantages.A transforming transaction is typically defined as the acquisition or divestiture of assets that comprise more that 1/3 of the pre-transaction EBITDA. While we measure the past 7-10 years of data, we would emphasize that our ratings are a forward view informed by historical volatility. To the extent we believe that future performance might deviate from historical patterns, we will modify this factor. How We Measure it for the Grid Size Measured by Revenues We use the most recen t annual revenues or latest 12 month reported revenues.The current year's revenues obviously can be either understated or overstated subject to where the company is in the commodity price cycle. While the commodity price cycle may be different for various companies, this metric measures all companies, by and large, at the same point in the economic cycle. For companies whose revenues are on the border between two ratings categories, the analyst would consider the point in the commodity price cycle at which the measurement is taken and the estimate of future revenues. Divisions with Revenues of Equal Relative SizeThis factor can be captured from financial statements. We use the segment information found in the most recent quarterly report on a latest four quarter basis. We are attempting again to capture both diversity as well as scale. The analyst may adjust segment revenues manually to adjust for non-ordinary items or non-public segment information provided by management. For compa nies whose divisional revenues are volatile and subject to cycles, the analyst would again consider the point in the pricing cycle at which the measurement is taken.Our focus is to measure diversity of revenue streams. For a company with $1 billion in revenues – if all revenues come from a sole division/product it would map to a B. If there were four discrete divisions with $250 million in revenues each (essentially equal in size) it would map to a Baa. For a company with $10 billion in revenues with four discrete divisions/products, if two divisions had $3 billion in revenues each and 2 divisions had $2 billion in revenues each – it would still be judged to be relatively diverse and equate to a Baa. 1 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry Stability of EBITDA This factor is measured by the normalized standard error of the company's EBITDA as determined by a least squares regression on seven to ten years of data. We utilize standard error rather than standard deviation as it is much better at differentiating between commodity and specialty chemical companies.Standard deviation is a static measure that cannot clearly differentiate between a stable company growing over time and a commodity company whose volatility is induced by changes in its cash margins. Standard error is a statistical measure of the difference between the company's actual performance versus a theoretical line drawn through the data (hence normal growth in EBITDA over 7-10 years should not have a negative impact on this metric). The normalized standard error is obtained by dividing the standard error obtained from a linear regression by the average EBITDA over the period analyzed.This allows us to compare the standard error of large companies to much smaller companies This measurement is designed to capture two types of stabil ity: For smaller companies – The stability of business or businesses relative to other companies in the industry. The absolute size of a company is not considered. For larger companies – A very large or diverse commodity company may exhibit more stability based on the number of businesses in its portfolio, especially if the earnings of their individual businesses are not correlated (i. e. , all businesses don't go into a downturn or upturn at the same time).In statistical terms, if the covariance of the company’s businesses is low, the company's performance should be more stable although it may be an inherently cyclical commodity chemical business. Companies with a normalized standardized error above 40% (which maps to the Caa category) are most common for companies with very low or negative EBITDA at the bottom of a downturn. Factor 2: Size & Stability (27. 27%) Weight a) Revenue (Billions of US$) b) # of Divisions of Equal Size c) Stability of EBITDA 9. 09% 9. 09% 9. 09% Aaa ? $50 8 ; 2% Aa $20 – $50 6 to 7 2% – 6% A $10 – $20 5 6% – 12%Baa $5 – $10 4 12% – 20% Ba $1 – $5 2 or 3 20% – 30% B $. 2 – $1 1 or 2 30% – 40% Caa $. 1 – $. 2 1 40% – 60% Ca ; $. 1 0. 5 ? 60. 0% A chart that illustrates grid mapping results for Factor 2 and a discussion of outliers for companies in the sample is included in Appendix C. Factor 3: Cost Position (18. 18% weight) Why It Matters Relative cost position is a critical success factor for a chemical company because, in a downturn, (either cyclical or economic) prices often decline to the point where only companies with first and second quartile cash costs generate meaningful cash flow.Operating cost positions are a function of criteria that include size, access to low cost raw material inputs, location of assets, labor rates, and capital invested. Further, with low levels of financial leverage, low cost producers are typicall y better positioned to outperform competitors. Low cost producers, with low leverage, are better able to survive in a downturn and are also better positioned to grow when opportunities arise. A company's cash costs and its position on the industry cost curve, as well as the overall shape of the industry cost curve, are all valuable information.However, true cash cost curve data, while useful, is often proprietary or may be the property of various consultants and difficult to verify. 12 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry Comparisons across the wide variety of commodity and specialty chemical companies make it difficult to rely on relative or absolute costs for ranking companies. We use two measures in addition to information provided by companies to assess cost positions: ? ?EBITDA Margin Return on Average Assets How We Measur e it for the Grid EBITDA Margin This factor is used in part to gauge the quality of the pricing power a company has and is likely to achieve. It is measured using EBITDA, which includes recurring â€Å"other† income and excludes non-recurring â€Å"other† income and one time charges. This factor, along with several others, is an important measure of a company's profitability in multiple economic scenarios. We use the past three years' actual results along with our expectation for the next two years, and to consider the average as well as the high and low points.For illustrative purposes the measurement used in the company examples herein is based on an average of the past three years' EBITDA margin. The choice of EBITDA, versus EBIT, is driven in part by the many and varied depreciation polices used globally and the need for comparability between regions. Nonetheless, we recognize the weaknesses of EBITDA, discussed below, and analysts within regions will also evaluate EBIT margins as well. Another reason for the use of EBITDA is the aterial difference in capital intensity within sub-sectors of the chemical industry. The capital intensity of a large commodity company can be very different from a smaller specialty player. The use of EBITDA – as opposed to EBIT – has a disadvantage in that EBITDA fails to address the capital intensity of the chemical industry effectively. Clearly an important indicator of a company's ability to generate operating profit should be assessed after the costs of plant maintenance and capacity expansion, as represented by its annual depreciation charges.Experience indicates that while a chemical company's capital spending often swings with major projects, it will generally need to spend its depreciation over time as it maintains and develops new facilities. We attempt to capture the effect of this capital intensity in our use of free cash flow metrics in the financial strength rating factor discussion. Retu rn on Average Assets This is a strong measure of a company's ability to generate a consistent and meaningful return from its asset base. This metric specifically takes into account the capital intensive nature of the industry.This is also a five-year average measurement using the past three years of actual results along with our expectation for the next two years. We use total assets, less cash and short term investments rather than tangible assets to provide a more meaningful measure for the universe of speculative grade companies. Factor 3: Cost Position (18. 18%) Weight a) EBITDA Margin b) ROA – EBIT / Assets 9. 09% 9. 09% Aaa ? 30% ? 25% Aa 20% – 30% 15% – 25% A 15% – 20% 10% – 15% Baa 10% – 15% 7% – 10% Ba 8% – 10% 4% – 7% B 4% – 8% 2% – 4% Caa 1% – 4% 0. 5% – 2% Ca < 1% < 0. 5%A chart that illustrates grid mapping results for Factor 3 and a discussion of outliers for companies in the sam ple is included in Appendix C. 13 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry Factor 4: Leverage / Financial Policies (18. 18% weight) Why It Matters Management's willingness to enhance shareholder value via debt financed acquisitions and/or share repurchases, is likely to increase credit risk. The chemical industry is particularly vulnerable given its volatile nature.We learn about financial policies through a discussion with management that includes hypothetical scenarios. Such meetings often examine management's willingness to stretch its balance sheet and/or financial flexibility. The hypothetical situations often relate to acquisitions or share repurchase appetites. Concerning acquisitions, discussions often focus on size and on the combination of debt and/or equity that will be used to fund a growth initiative. Another key conce rn is management's approach to managing financial flexibility through a range of cycles.Specifically we look for an approach that emphasizes preparedness for lean times such that strong cash flows, when available, are used to reduce debt. Measurement of leverage and financial policies is based on two different estimates of leverage: current debt to capitalization, and debt to EBITDA. We believe that the amount of leverage with which management operates is a choice and a direct result of a company's financial strategy. Issuers, particularly those in the investment grade and high Ba rating categories, often actively manage to these ratios.Certainly these ratios, especially debt to EBITDA, are used by providers of capital in the form of specific covenant tests. Debt to capital is a simple way to compare the capital structure of companies operating within an industry, and managements often claim to manage to it. This metric is also a way to assess management's willingness to grow via de bt financed acquisitions. The debt to EBITDA ratio is a measure that balances the debt to capitalization ratio with a measurement of a company's ability to generate EBITDA both in times of peak pricing and in times of stress.We believe these two metrics provide insight into the company's financial policies, including its tolerance for debt and the ability of the company to ride out the highs and low of a cycle. How We Measure it for the Grid Debt to Capital This factor can be easily captured from financial statements using the most recent annual or quarterly debt and equity balances (incorporating our standard adjustments). There are certainly situations where this metric becomes less useful — particularly in the case of LBOs or spinouts wherein book equity is low or nonexistent. In these instances this metric could be given reduced weight.In the event that a company's book equity is extremely low and the stock is publicly traded, the analyst may use the market capital of the company in place of book equity in this ratio. While market capital has its own weaknesses and can be very volatile, this approach can be of some value. Debt to EBITDA For this measure we use a five-year average of the annual debt and EBITDA balances as shown on the financial statements. We look back three years and use estimates to make assumptions for two years going forward. Factor 4: Leverage / Financial Policies (18. 18%) * Weight a) Current Debt / Capital b) Debt / EBITDA 9. 09% 9. 09% Aaa lt; 15% < . 5x Aa 15% – 25% . 5x – 1. 5x A 25% – 35% 1. 5x – 2. 25x Baa 35% – 50% 2. 25x – 3x Ba 50% – 70% 3x – 4x B 70% – 80% 4x – 6x Caa 80% – 95% 6x – 8x Ca ? 95% ? 8x * Where appropriate net adjusted debt may be used (see discussion of Cash Balances and Net Debt Considerations) 14 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodo logy Moody’s Global Corporate Finance Global Chemical Industry A chart that illustrates grid mapping results for Factor 4 and a discussion of outliers for companies in the sample is included in Appendix C. Factor 5: Financial Strength (27. 7% weight) Why It Matters The three key indicators of financial strength are 1) Interest Coverage, 2) Retained Cash Flow to Debt, and 3) Free Cash Flow to Debt. All of these metrics are averaged over five-year periods to address the volatile nature of the industry. Interest coverage: Interest coverage can be particularly meaningful for speculative grade companies. This is especially true if the interest rate environment is in a period of change — such as the migration from lower rates to higher rates — and an issuer is facing the need to refinance debt that is nearing maturity. It is a less important metric for higher-rated companies.The remaining two metrics are useful across the rating spectrum and relate to the amount of ca sh flow available to cover varied scenarios of both operating needs and financing needs. ? ? Operating needs include major items such as working capital and capital spending. Financing needs refers to the impact of dividends and the â€Å"free† cash then available to service debt. As discussed above, the use of EBITDA (as opposed to EBIT) in the interest coverage ratio is important for companies in the chemical industry and the decision to use it is a function of the need to make the ratio more comparable globally.Retained Cash Flow and Free Cash Flow: The cash flow metrics we use measure two different levels of cash flow: retained cash flow and free cash flow and their ratio to total adjusted debt. Retained cash flow is a broader measure of financial flexibility than free cash flow as it excludes the potential ‘noise' created by changes in working capital and unusual capital spending programs. This is a helpful measure given the volatility and the variation in capital intensity within the chemical sector.As with other factors in which debt is involved we can look at these cash flow metrics in two ways — as a percentage of both debt and of net debt (net of cash balances). We use net debt for companies at which it is either a stated, long-lived policy to hold material cash balances or for which there may be unique scenarios such as recent asset sales whereby cash may be earmarked for use in debt reduction efforts. In some specific instances we may use a net debt denominator for the free cash flow metric as well. A more detailed discussion of our views on cash balances appears below.Free cash flow is, in many instances, one of the most important and reliable measures of financial strength and flexibility. This metric reflects a company's primary source of liquidity as it directly speaks to management's ability to service its debt burden after considering both its operating and financial commitments to shareholders. In this metric we often ide ntify where capital spending programs may be extraordinarily large and/or risky. At times, programs can have a direct impact on ratings because of the size of expenditure that may be involved as well as the risks of executing the program on time and on budget.If, for example, a large amount of capital is spent on new greenfield capacity and we believe that such capacity is being added at a time when product prices are low (i. e. , there is a lack of an adequate return on capital) the ratings may be negatively affected. There is also the risk that anticipated operating cash cost benefits upon project completion are different than expected. 15 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry How We Measure it for the GridInterest coverage This metric is a straightforward look at EBITDA (adjusted for non-recurring other income and one-time ch arges) to gross interest expense (including capitalized interest). This is a five-year measure. Cash Flow to Debt ? Retained Cash Flow to Debt – Defined as funds from operations (FFO) minus dividends, as a percentage of total debt. This is a five-year measure. Free Cash Flow to Debt – Defined as cash flow from operations (by its nature operating cash flow is determined after taking into account working capital) minus capital spending and dividends, as a percentage of total debt.This is a five-year measure. ? Cash Balances and Net Debt Considerations Typically, analysts approach the use of cash balances and the use of cash in â€Å"net debt† calculations in a conservative fashion. As a general rule we would not typically consider cash on the balance sheet as a true offset to adjusted total debt in for the purpose of ratio analysis. Reasons that we would not look at cash on the balance sheet as fungible for the debt include concern that: ? the cash is easily used for other purposes and debt reduction is only counted hen debt is permanently reduced in some instances cash is actually needed to fund the day-to-day operations of the issuer the cash is â€Å"stranded' overseas and subject to material taxes such that the true cash balance is materially lower than represented in the financial statements there may be other claims on the cash for restructuring efforts or legacy liabilities. ? ? ? There are, however, examples where our analysis for chemical companies incorporates cash balances as providing a measure of offset to adjusted total debt balances. Exceptions to the above analytical approach, for which we give credit for cash balances include: ? he specific refunding of near term debt maturities wherein management borrows in advance to prefund a near term maturity. cash is held temporarily for legal, tax or other purposes and the company has publicly stated its intention to reduce debt once the temporary period has ended. ? Other instances, typically only for large companies, include situations in which management has a history of maintaining material levels of cash on the balance sheet, it has publicly stated its intention not to pursue largedebt financed acquisitions or share repurchases, and cash is accessible without meaningful loss to taxes.In Europe and Latin America, we also generally observe that companies are more willing to maintain higher cash balances that may sometimes be linked to tax considerations or more broadly reflect a more conservative style of financial policies. Considering only gross debt may not reflect the real financial strength of these companies and we may prefer in this case to focus on net debt. In these cases, however, we capture the expectation that these cash balances can be liquidated at least at book value and without tax costs.Factor 5: Financial Strength (27. 27%) * Weight a) EBITDA / Interest Expense b) Retained Cash Flow / Debt c) Free Cash Flow / Debt 9. 09% 9. 09% 9. 09% Aaa ? 20x ? 65% ? 40% Aa 15x – 20x 45% – 65% 25% – 40% A 10x – 15x 30% – 45% 15% – 25% Baa 5x – 10x 20% – 30% 8% – 15% Ba 2x – 5x 10% – 20% 4% – 8% B 1x – 2x 5% – 10% . 5% – 4% Caa 0. 5x – 1x 1% – 5% 0% – . 5% Ca ; 0. 5x ; 1% ; 0% * Where appropriate net adjusted debt may be used (see discussion Cash Balances and Net Debt Considerations) 16 December 2009 ? Rating Methodology ?Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry A chart that illustrates grid mapping results for Factor 5 and a discussion of outliers for companies in the sample is included in Appendix C. Assumptions, Limitations and Rating Considerations not Covered in the Grid The rating methodology grid incorporates a trade-off between simplicity that enhances transparency and greater complexity that would enable the grid to map more closely to actual ratings.The five rating factors in the grid do not constitute an exhaustive treatment of all of the considerations that are important for ratings of global chemical companies. In choosing metrics for this rating methodology grid, we did not include certain important factors that are common to all companies in any industry, such as the quality and experience of management, assessments of corporate governance and the quality of financial reporting and information disclosure.The assessment of these factors can be highly subjective and ranking them by rating category in a grid would, in some cases, suggest too much precision in the relative ranking of particular issuers against all other issuers that are rated in various industry sectors. Ratings may include additional factors that are difficult to quantify or that only have a meaningful effect in differentiating credit quality in some cases. Such factors include regulatory and l itigation risk as well as changes in end use demand such that today’s specialty chemical becomes tomorrow’s commodity.While these are important considerations, it is not possible to precisely express these in the rating methodology grid without making the grid excessively complex and less transparent. Ratings may also reflect circumstances in which the weighting of a particular factor or qualitative issue will be different from the weighting or outcome suggested by the grid. For example, the importance of the business profile score is highlighted by the fact that, in certain cases, it can outweigh all other factors in the methodology materially, lowering ratings significantly. The three most prominent examples are: ? ? operations limited to a single site, and a business model whose success is highly dependent on government actions or policies. a company with significant litigation related to either environmental or product liability issues. This variation in weighting as a rating consideration can also apply to factors that we chose not to attempt to represent in the grid. For example, liquidity is a rating consideration that can sometimes be critical to ratings and under other circumstances may not have a substantial impact in discriminating between two issuers with a similar credit profile.Ratings can be heavily affected by extremely weak liquidity that magnifies default risk. However, two identical companies might be rated the same if their only differentiating feature is that one has a good liquidity position while the other has an extremely good liquidity position. This illustrates some of the limitations for using grid-indicated ratings to predict rating outcomes. Another consideration is the increase in pension underfunding that occurred at the end of 2008 as a result of large declines in the global equity markets.Increased pension fund liability is unlikely to be the sole driver of ratings downgrades where issuers have adequate liquidity, sufficient resources to alleviate their funding deficiency over time and financial metric contraction is modest for their rating category and the metric contraction is expected to only temporarily deviate. In evaluating the impact of an issuer’s pension liability on ratings, the analyst will consider the magnitude of the shortfall, the ability of the company to reduce the shortfall over time using internal sources and committed external sources of capital, and the plans for doing so.Issuers with higher ratings are likely to avoid a downgrade solely resulting from the increased pension liability if there is a clearly articulated plan for reducing the liability and we believe there are resources available to meet the plan without putting the core business and financial profile at risk. Issuers with speculative grade ratings and those at the lower end of investment grade rating levels are at greater risk of ratings transition because of higher potential exposure to liquidity is sues and weaker perceived capability of eradicating the funding liability without weakening the company’s financial or business position. 7 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody’s Global Corporate Finance Global Chemical Industry In addition, our ratings incorporate expectations for future performance, while the financial information that is used to illustrate the mapping in the grid is historical in practice we look at a combination of prior years and future years; usually three years of history and two years looking forward. In some cases, our expectations for future performance may be informed by confidential information that we cannot publish.In other cases, we estimate future results based upon past performance, industry trends, demand and price outlook, competitor actions and other factors. In either case, predicting the future is subject to the risk of substantial i naccuracy. Assumptions that can cause our forward looking expectations to be incorrect include unanticipated changes in any of the following: the macroeconomic environment and general financial market conditions, industry competition, new technology, regulatory actions, and changes in environmental regulation. Conclusion: Summary of the Grid-Indicated Rating OutcomesThe methodology grid-indicated ratings based on last twelve month financial data as of the quarter end closest to September, 30, 2009 map to current assigned ratings as follows (see Appendix B for the details): ? ? 8 companies map to their assigned rating 10 companies have a grid-indicated rating that is one or two alpha-numeric notches from the assigned rating 2 companies have a grid-indicated rating that is three notches from their assigned rating ? Overall, the framework indicates that there are an even number of companies whose grid-indicated rating is below their actual rating (6) than above their actual rating (6). This can be attributed to a variety of factors including: (a) willingness to look through periods of stronger or weaker activity where appropriate; (b) grid metrics do not capture our expectation of lower raw material costs and their benefit to margins and (c) liquidity concerns such as generating cash from working capital in a downturn are not fully captured by the grid. 18 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody's Global Corporate Finance Global Chemical IndustryAppendix A: Global Chemical Industry Methodology Factor Grid Weight Factor 1: Business Profile a) Business Position Assessment Factor 2: Size & Stability a) Revenue (Billions of US$) b) # of Divisions of Equal Size c) Stability of EBITDA Factor 3: Cost Position a) EBITDA Margin b) ROA – EBIT / Assets Factor 4: Leverage / Financial Policies * a) Current Debt / Capital b) Debt / EBITDA Factor 5: Financial Strength * a) EBIT DA / Interest Expense b) Retained Cash Flow / Debt c) Free Cash Flow / Debt 9. 09% 9. 09% 27. 28% 9. 09% 9. 09% 9. 09% 18. 19% 9. 09% 9. 09% 18. 9% 9. 09% 9. 09% 27. 28% 9. 09% 9. 09% 9. 09% ? 20. 0x ? 65. 0% ? 40. 0% 15. 0x – 20. 0x 45. 0% – 65. 0% 25. 0% – 40. 0% 10. 0x – 15. 0x 30. 0% – 45. 0% 15. 0% – 25. 0% 5. 0x – 10. 0x 20. 0% – 30. 0% 8. 0% – 15. 0% 2. 0x – 5. 0x 10. 0% – 20. 0% 4. 0% – 8. 0% 1. 0x – 2. 0x 5. 0% – 10. 0% 0. 5% – 4. 0% 0. 5 – 1. 0x 1. 0% – 5. 0% 0. 0 – 0. 5% < 0. 5x < 1. 0% < 0. 0% < 15. 0% < 0. 50x 15. 0% – 25. 0% 0. 50x – 1. 50x 25. 0% – 35. 0% 1. 50x – 2. 25x 35. 0% – 50. 0% 2. 25x – 3. 00x 50. 0% – 70. 0% 3. 00x – 4. 00x 70. 0% – 80. 0% 4. 00x – 6. 00x 80. 0% – 95. % 6. 00 – 8. 00x ? 95. 0% ? 8. 00x ? 30. 0% ? 25. 0% 20. 0% – 30. 0% 15. 0% â €“ 25. 0% 15. 0% – 20. 0% 10. 0% – 15. 0% 10. 0% – 15. 0% 7. 0% – 10. 0% 8. 0% – 10. 0% 4. 0% – 7. 0% 4. 0% – 8. 0% 2. 0% – 4. 0% 1. 0% – 4. 0% 0. 5% – 2. 0% < 1. 0% < 0. 5% ? $50. 0 8 > 2. 0% $20. 0 – $50. 0 6 to 7 2. 0% – 6. 0% $10. 0 – $20. 0 5 6. 0% – 12. 0% $5. 0 – $10. 0 4 12. 0% – 20. 0% $1. 0 – $5. 0 2 or 3 20. 0% – 30. 0% $0. 2 – 1. 0 1 or 2 30. 0% – 40. 0% $0. 1 – $0. 2 1 40. 0% – 60. 0% < $0. 1 0. 5 ? 60. 0% ? 6. 0 4. 5 – 6. 0 3. 5 – 4. 5 2. 5 – 3. 5 1. 5 – 2. 5 0. – 1. 5 0. 5 – 0. 5 < – 0. 5 Aaa Aa A Baa Ba B Caa Ca * Where appropriate net adjusted debt may be used (see discussion Cash Balances and Net Debt Considerations) 19 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating Methodology Moody's Global Corporate Finance Global Chemical Industry Appendix B: Methodology Grid-Implied Ratings Overall Grid Implied Rating Issuer Moody's Rating Business Profile Size & Stability # of Divisions of Equal Size Baa Aa Aa Aa Aa A A B A Baa Ba Aa Ba B Ba B Caa Ba B Ba Cost PositionLeverage / Financial Policies EBITDA/ Interest Expense (3 Yr) Avg Aaa A A Aaa A Ba Baa Aaa A Baa A A B Ba B Ba B Ba B Ca Financial Strength Retained Cash Flow/ Debt (3 Yr Avg) Aaa A Baa A Ba Ba Ba Aaa A Baa Baa Baa B Ba B Ca Ba Ba Ba Caa Free Cash Flow/ Debt (3 Yr Avg) Ca Baa Ba Ca Ca Ba Ba Aa B B Ba Ba Ca Ba Ba Ca Ba Ca Ba Ca Business Position Assessment Shin-Etsu Chemical Company Ltd BASF (SE) E. I. du Pont de Nemours and Company Revenue (Billions of US$) A Aaa Aa Ba Baa Aa Aa Baa A Baa A Aaa Baa Baa Ba Ba Baa A Ba Baa Stability of EBITDA Baa A Baa Ba Baa A Aa Ca Baa Ba Ba Baa Ba Ba A Baa Ca Ba Ba BaEBITDA Margin % (3 Year Avg) Aaa A A Baa Baa A Baa Aaa Baa A Baa Baa A Aa A A Baa Ba B Ba ROA – EBIT / Assets (3 Yr Avg) A A A Ba Ba Ba Ba Aaa A A A A Baa A Baa A Baa Ba Ba Ba Current Debt/Capital Aaa Baa Ba A Ba Baa Baa Baa Baa Ba Ba Ba B Caa Caa Caa Ba B Caa Ca Debt/ EBITDA (3 Yr Avg) Aaa Aa Baa A Ba Ba Ba Aa A Baa Baa Baa Ba Ba B B B B B Ca Aa3 A1 A2 A2 A3 A3 Baa1 Baa1 Baa1 Baa2 Baa2 Baa3 Ba1 Ba2 Ba3 Ba3 B1 B1 B1 B3 A1 A1 A3 Baa1 Baa3 Baa1 Baa1 A2 Baa1 Baa2 Baa2 A3 Ba3 Ba1 Ba1 Ba3 B1 Ba3 B1 B2 Aa Aa Aa A Aa Aa A A Ba A Baa Aa B Baa A Baa Ca Baa B Baa Kaneka Corporation Teijin Limited Bayer AG Akzo Nobel N.V. Potash Corporation of Saskatchewan LG Chem, Ltd. Eastman Chemical Company Yara International ASA Dow Chemical Company (The) Braskem SA Celanese Corporation Nalco Company ISP Chemco LLC NOVA Chemicals Corporation Huntsman Corporation PolyOne Corporation Hexion Specialty Chemicals Inc. Positive Outlier Negative Outlier For illustrative purposes most financial metrics used the last three full fiscal years of reported data FYs 2006, 2007 and 2008 20 December 2009 ? Rating Methodology ? M oody’s Global Corporate Finance – Global Chemical Industry Rating MethodologyMoody's Global Corporate Finance Global Chemical Industry Appendix C: Observations and Outliers for Grid Mapping Factor 1 – Business Profile The majority of positive outliers for business profile are associated with companies whose financial strength, financial policy measures or liquidity are weakly positioned, providing offsets that are more consistent with the overall ratings. Factor 1: Business Profile Issuer Shin-Etsu Chemical Company Ltd BASF (SE) E. I. du Pont de Nemours and Company Kaneka Corporation Teijin Limited Bayer AG Akzo Nobel N. V. Potash Corporation of Saskatchewan Inc.LG Chem, Ltd. Eastman Chemical Company Yara International ASA Dow Chemical Company (The) Braskem SA Celanese Corporation Nalco Company ISP Chemco LLC NOVA Chemicals Corporation Huntsman Corporation PolyOne Corporation Hexion Specialty Chemicals Inc. Positive Outlier Rating Aa3 A1 A2 A2 A3 A3 Baa1 Baa1 Ba a1 Baa2 Baa2 Baa3 Ba1 Ba2 Ba3 Ba3 B1 B1 B1 B3 Business Position Assessment Aa Aa Aa A Aa Aa A A Ba A Baa Aa B Baa A Baa Ca Baa B Baa Negative Outlier 21 December 2009 ? Rating Methodology ? Moody’s Global Corporate Finance – Global Chemical Industry Rating MethodologyMoody's Global Corporate Finance Global Chemical Industry Factor 2 – Size & Stability Here the majority of positive outliers for revenue are associated with companies whose financial strength, financial policy measures or liquidity are relatively weakly positioned, providing offsets that are more consistent with the overall ratings. The negative outliers are largely related to the stability of EBITDA metric and reflect the volatility of cash flows in certain companies and sectors due to unprecedented high raw material prices and the significant global economic downturn in 2008.Factor 2: Size & Stability Revenue (Billions of US$) A Aaa Aa Ba Baa Aa Aa Baa A Baa A Aaa Baa Baa Ba Ba Baa A Ba Baa Issuer Shin-Etsu Chemical Company Ltd BASF (SE) E. I. du Pont de Nemours and Company Rating Aa3 A1 A2 A2 A3 A3 Baa1 Baa1 Baa1 Baa2 Baa2 Baa3 Ba1 Ba2 Ba3 Ba3 B1 B1 B1 B3 # of Divisions of Equal Size Baa Aa Aa Aa Aa A A B A Baa Ba Aa Ba B Ba B Caa Ba B Ba Stability of EBITDA Baa A Baa Ba Baa A Aa Ca Baa Ba Ba Baa Ba Ba A Baa Ca Ba Ba Ba Kaneka Corporation Teijin Limited Bayer AG Akzo Nobel N. V. Potash Corporation of Saskatchewan Inc. LG Chem, Ltd.Eastman Chemical Company Yara International ASA Dow Chemical Company (The) Braskem SA Celanese Corporation Nalco Company ISP Chemco LLC NOVA Chemicals Corporation Huntsman Corporation PolyOne Corporation Hexion Specialty Chemicals Inc. Positive Outlier Negative Outlier 22 December 2009 ? Rating

Gentrification, the Issue of Today Life

Ever since the 1960s, there has been an influx of high-income populations moving into urban areas from the suburbs. This phenomenon was coined ‘gentrification’ by sociologist Ruth Glass in 1964 to describe â€Å"the movement of upscale (mostly white) setters into rundown (mostly minority) neighborhoods† (Hampson). Proposition 555 has stated that in order to increase government funding and provide citizens a better life with a cleaner environment and safer community, the process of gentrification would require the destruction of some old and unsafe houses. Since then, this policy has received mixed reception from all walks of life.Protagonists, on one side, consider gentrification as the solution to current hard urban issues. Antagonists, on the other side, believe that it causes severe poor-displacement. Debates seem to be endless, yet the whole society is changing due to the great impact of gentrification: luxury condos replacing once deteriorating houses, street s becoming cleaner, and crime rates declining significantly, thus, consolidating my strong support for Proposition 555. To begin with, the first and foremost upside of gentrification is economic improvements in the neighborhood because it boosts up the use of urban land and attracts more business investments.Brooklyn and the Bronx, two of the five boroughs of New York City, are two typical examples. Urban renewal in Brooklyn, also known as ‘brownstoning’, has encouraged a huge wave of investment: $300 million from the city and $3. 5 billion from private investors (Browdie). While the former has been invested in Brooklyn Bridge Park’s construction, the latter has yielded â€Å"7. 8 million square feet of new residential, retail and commercial space, including 26 apartment complexes, four hotels, and a glassy shopping complex† (Browdie).In regards to the Bronx, the gentrifying process has brought to the region a new appearance. The notorious neighborhood, wh ich used to be considered off limits to investors due to commercial waste, crimes, and violence, has become â€Å"a diamond in the rough, being discovered† (Magistro). Today, the Bronx has numerous remarkable attractions like the Bronx Zoo—one of the world’s largest metropolitan zoos, the New York Botanical Garden, Wave Hill, excellent subway service, retail strip malls, and affluent bedroom communities (Magistro).In South Bronx, Majora Carter, a famous urban revitalization strategist says that the removal of Sheridan Expressway and construction of Lafayette Avenue has made this area appeal to stakeholders for parkland, affordable housing and local economic development (Majora Carter: Greening the Ghetto). Once urban land is in use, it signals huge economic improvements, especially in the tourism industry, job developments, and real estate. Recent studies conducted by Rutgers University have found that in New Jersey, historic preservation, part of the state gent rification policies, has significantly profited the state’s tourism.Besides 2,316 jobs created annually in this industry, New Jersey has earned $15 million in state and local taxes, $16 million in GDP, and $432 million for the economy (Listokin and Lahr). Moreover, in restructured neighborhoods, new projects associated with job training have emerged to meet the investors’ demands. For example, the South Bronx community is running the Bronx Ecological Stewardship Training project to â€Å"seed the area with green collar jobs† in the fields of ecological restorations so that its people will be qualified for these well-paying jobs (Majora Carter: Greening the Ghetto).As a result of being employed, a person gains a greater opportunity of sustainable income and will tend to purchase a house to settle into family life. In other words, gentrification is an impetus to the local economy because it stimulates the use of urban lands, opens more job opportunities, and encou rages real estate. Along with economic improvements, a great number of social achievements have been accomplished due to gentrification, especially in community-safety increase. Prior to redevelopment, low-income areas had to cope with a lot of crimes and violence such as gang shootings, drugs dealings and prostitution.However, gentrification has improved the people’s safety significantly. For example, according to Betty Baye, a columnist of The Courier-Journal in Louisville, Kentucky, New York was once appalled by a Dominican group of gangsters named Jheri Curls: They traded tons of cocaine and shot anyone complaining about their illegal business. She calls gentrification as â€Å"a new gang in town,† ousting the Jheri Curl from their old stomping grounds. The openings of â€Å"amenities as river views, parks, large rooms and convenience to public transportation [†¦have replaced†¦ grand old buildings that long were the domain of poor folks on rent control, buildings that are being reborn as luxury co-ops and condos,† Baye explains. Sharing her views, researchers from the Department of Sociology, University of Massachusetts Amherst, add that the building of new amenities prevents up to 45 percent of homicides and another 60 percent of robberies (Papachristos, Smith, Scherer, and Fugiero 225). Accordingly, gentrifying the neighborhoods helps lessen crimes, providing their residents with a safer community.In addition to economic and social achievements, gentrification also brings environmental justice to the redeveloped neighborhoods. Prior to renewal, people living around these areas encountered many health problems because of pollution and contamination issues that accumulated for many years. South Bronx, for example, used to be a location for the city’s commercial waste in sewage treatment and the food industry’s byproducts. Carter says a black person has a greater chance of being forced to live in an air-polluted area or within a walking distance of chemical facility in comparison with a white person (Majora Carter: Greening the Ghetto).As a result, diseases such as obesity, diabetes, and asthma have plagued the community for many years and damaged the future generation (Majora Carter: Greening the Ghetto). In other words, in non-gentrified neighborhoods, along with economic and social degradation, environmental injustice also drives these communities into even worse situations. However, once gentrification policies are implemented, the people’s health can greatly improve: air gets cleaner, water turns fresher and the environment becomes healthier and greener.In South Bronx, its inhabitants witnessed the inauguration of Hunts Point Riverside Park, the first waterfront park that the community had had in more than 60 years (Majora Carter: Greening the Ghetto). Therefore, it is understandable that gentrification provides a boost to environmental quality. Advocates of anti-gentrification usually argue that urban renewal is a one-sided benefit—profiting the white while harming the poor. Nonetheless, studies conducted by Lance Freeman, an assistant professor of urban planning at Columbia University, suggest that there is merely a slight connection between urban renewal and displacement (Hampson).He says that in gentrified neighborhoods, the chance of a poor being dislocated is only 0. 5% greater in comparison with a non-gentrified one (Hampson). Freeman believes that â€Å"although higher costs sometimes force poor residents to leave gentrif[ied] neighborhoods, other changes—more jobs, safer streets, better trash pickup—encourage them to stay† (Hampson). Besides coming to the same conclusion, researchers at the University of Pittsburgh and Duke University, also show that black householders with high school degrees account for 33% f the total neighborhood income, 13% greater than that of white householders (Kiviat). In conclusion, as urban p lanner Duany says, gentrification has proved to be â€Å"the rising tide that lifts all boats† because it provides an effective solution to the economy, social issues, as well as environmental justice that benefit all social classes. However, there are always two sides of a coin, and the story of gentrification is not an exception. The biggest issue of gentrification, as many antagonists believe, is the poor displacement.It is obvious that as a city is redeveloped and attracts more investors, housing prices will soar, making it difficult for old residents to manage to get by. Research conducted by Newman and Wyly of the Centre for Urban and Community Studies shows that residents of a gentrified city, especially seniors, find it hard to live when housing prices increase while their incomes stay (4). In the long run, this produces â€Å"exclusionary displacement,† â€Å"a process in which neighborhoods become off-limits, forcing lower-income residents to look elsewhere for housing† (1, 2).Adding to the housing burdens, other negative elements such as landlord harassment, evictions, and daily expenses drive former inhabitants out of their neighborhoods. So what is the solution to the problem? To answer this question, it is worthwhile to first acknowledge that gentrification is a natural process, meaning there is no way to stand against it, especially on the poor side. Sadly speaking, gentrification remains a dirty word to some people as it sounds—its origin dates back from the word â€Å"gentry,† meaning a â€Å"noble person. Baye explains that gentrification â€Å"may seem to some as nothing but the inevitable circle of life† because many of the upper settlers (mostly white) claim that those gentrified neighborhoods are their â€Å"rightful inheritance,† left for the colored by their predecessors as they fled to the suburbs. Looking negatively at urban renewal, it benefits the white folks; they have money, and th us, have the rights to demand higher services. Looking positively at urban renewal, these folks are doing good things after all, â€Å"for there is nothing more unhealthy for a city than a monoculture of poverty† (Duany).This leaves the only question: Can we gentrify the right way? Fortunately, there are numerous solutions that have been proposed by strategists, urban planners and experts in the field. To solve housing problem, New York has built a shelter system to support displaced residents (Newman and Wyly). Moreover, Duany insists that in order to avoid overpricing, urban renewal needs to be built as a long-term policy, tested and modified many times to fit the particular neighborhood so that it doesn’t negatively affect the community.Carter has come up with a model called the triple bottom line that seems to be a solution for the long run. She explains that her model can produce sustainable development because it â€Å"has the potential to create positive return s from all concerned: developers, government and the community where [the] projects go up† (Majora Carter: Greening the Ghetto). In addition, I propose the use of government power on taxing: The local government can weigh the impact of gentrification through data, statistics and surveys so that it can modify the tax base imposed on every household.No matter what solutions are proposed, there seems to be a general consensus among experts about the role of government: It can act as a peace broker to reconcile any hostility provoked by the misunderstanding between the rich and the poor. In summary, Proposition 555, whose process is to rebuild the old, unsafe towns and cities, is a good process for neighborhood residents who want to have better lives. Although gentrification sometime causes the poor to be displaced due to housing burdens and expenses, its benefits assist in solving urban issues.It provides a stimulus to the economy through the use of urban lands for business purpo ses, a safer society by clearing gang violence and a healthier environment by building public parks. To overcome its downsides, a number of useful and practical ideas have been brought about by many experts, ranging from shelter systems and tax modification to government regulation. The fight in favor of urban renewal, as Carter says, is the fight that â€Å"we have nothing to lose and everything to gain† (Majora Carter: Greening the Ghetto).

Britishness is defined as having a long history with tradition and Essay - 1

Britishness is defined as having a long history with tradition and culture. Westminster Abbey is designed to define britishness by the architecture and the functions - Essay Example The Westminster Abbey stands out as one of the most-conspicuous architectural masterpieces in Britain that have been designed to symbolize the long history of British culture and tradition. From its design in architecture to its design in the functions that take place within and around its premises, the Westminster Abbey is a classical representation of ‘Britishness.’ The history of Westminster Abbey stretched back to 1065 when King Edward the Confessor built a new church as a dedication to Saint Peter. Following his death, King Edward befitted the first person to be buried at the Abbey and William, the new Conqueror, became the first person to be crowned at the Abbey. In close resemblance to the Canterbury Cathedral, the Abbey became a center for pilgrimage due to the shrines of kings and queens and other important individuals in the society. After many years in the desolation, King Henry III decided to re-build the Abbey in 1245, and the resultant design reflects the Abbey’s current appearance. The history of Westminster Abbey is long and continue to this day. For example the buildings, houses and apartment tell a lot of the historical journey from when it commenced to today. For more than one thousand years, Westminster Abbey has maintained a unique architectural, historical and symbolic significance where the tradition and culture of t he English state, church and monarch and law are inexorably intertwined. As a group, the architectural pieces that form the Abbey symbolize masterpieces of monumental architecture since the medieval times, and which derive from the best of historic construction methods and traditional craftsmanship (Levy 8-12). Thus, it is plausible that the design of the Westminster Abbey was meant to be a constant representation of British culture and tradition for many years after its construction. On the design of its functions, it is the Abbey’s pre-eminent

Traditional Sports of Kuwait Essay Example | Topics and Well Written Essays - 750 words

Traditional Sports of Kuwait - Essay Example This event comprises of training the birds to swoop down on their prey from a great height at a great speed and then return to their masters. This requires quite a skill but was practiced and mastered by the people in the ancient days. This sport is an integral part of the desert life but it helped to support the meager diet of dates, milk and bread (United World, 2006). Even though it started as a necessity, it eventually became a sport enjoyed equally by both the rich and the poor. The traditional sport has adopted certain changes. In the ancient days the hunting parties used to pursue their prey on a camel or a horse back but today this has been replaced by a four-wheeled vehicle. The UAE government spends about Dhm100 millions on falconry every year (UAEInteract, 2006). The purpose is two-fold – protection of the falcons and creating awareness of this endangered species. Horse racing is still pursued by the modern Kuwaitis. The exclusive Hunting and Equestrian Club is still active although the club’s original horses were stolen by Iraqi invaders (HotelTravel, 1999). The club has race tracks and riding and gymkhana facilities along with other sports and recreation facilities. Racing is still held every Monday at 3pm from October to April except during Ramadan (eKuwait, n.d.). Jockeys and horses from all over the world compete on the club’s attractive, tree-lined track and is open to public. Camel racing is a sport that has its roots in the desert culture. Camels commonly referred to as the ‘ships of the desert’ play a vital role in the daily life of the people in the region (Hezaz, 2002). Camels start receiving training when they are 13 months old and it continues up to the age of three when they begin racing. Care is taken of nutrition of the camels and it requires a very careful camel maintenance hierarchy. Nutritionists, feeders, jockeys, drivers, grooms, cleaners,