Fitch Downgrades United Kingdom To ‘aa+’; Outlook Stable

U.S. Relations With United Kingdom

U.S. priorities continue to be supporting the peace process and devolved political institutions in Northern Ireland and encouraging the implementation of the U.S.-brokered 1998 Belfast Agreement, also known as the Good Friday Agreement, and the 2006 St. Andrews Agreement. U.S. Assistance to the United Kingdom The International Fund for Ireland (IFI), created in 1986, provides funding for projects to generate cross-community engagement and economic opportunity in Northern Ireland (the United Kingdom) and the border counties of Ireland. Since the IFI’s establishment, the U.S. Government has contributed over $500 million, roughly half of total IFI funding. The other major donor to IFI is the European Union. Bilateral Economic Relations The United Kingdom is a member of the European Union and a major international trading power. The United Kingdom is one of the largest markets for U.S. goods exports and one of the largest suppliers of U.S.

At the same time, the agency has affirmed the UK’s Short-term foreign currency rating at ‘F1+’ and the Country Ceiling at ‘AAA’. The rating actions follow the conclusion of the review of the UK’s sovereign ratings initiated on 22 March and resolve the Rating Watch Negative. The previous Negative Outlook on the UK’s sovereign ratings had been in place since 14 March 2012. KEY RATING DRIVERS The downgrade of the UK’s sovereign ratings primarily reflects a weaker economic and fiscal outlook and hence the upward revision to Fitch’s medium-term projections for UK budget deficits and government debt. Despite the loss of its ‘AAA’ status, the UK’s extremely strong credit profile is reflected in its ‘AA+’ rating and the Stable Outlook. – Fitch now forecasts that general government gross debt (GGGD) will peak at 101% of GDP in 2015-16 (equivalent to 86% of GDP for public sector net debt, PSND) and will only gradually decline from 2017-18. This compares with Fitch’s previous projection for GGGD peaking at 97% and declining from 2016-17 and the ‘AAA’ median of around 50%. – Fitch previously commented that failure to stabilise debt below 100% of GDP and place it on a firm downward path towards 90% of GDP over the medium term would likely trigger a rating downgrade. Despite the UK’s strong fiscal financing flexibility underpinned by its own currency with reserve currency status and the long average maturity of public debt, the fiscal space to absorb further adverse economic and financial shocks is no longer consistent with a ‘AAA’ rating. – Higher than previously projected budget deficits and debt primarily reflects the weak growth performance of the UK economy in recent years, partly due to headwinds of private and public sector deleveraging and the eurozone crisis. Fitch has revised down its forecast economic growth in 2013 and 2014 to 0.8% and 1.8%, respectively, from 1.5% and 2.0% at the time of the last review of the UK’s sovereign ratings in September 2012. The UK economy is not expected to reach its 2007 level of real GDP until 2014, underscoring the weakness of the economic recovery.

Hyde Marine Names Cammell Laird Installation Partner in the United Kingdom

It also received International Maritime Organization (IMO) Type Approval in April 2009 and has Type Approvals from several Class Societies. Tested and validated at the Royal Netherlands Institute for Sea Research (NIOZ), one of the most challenging ballast water test facilities in the world, the Hyde GUARDIAN BWTS ultimately became the first BWTS accepted into the U.S. Coast Guards Shipboard Technology Evaluation Program (STEP), which facilitates the development of effective BWTS technologies for vessel owners seeking alternatives to ballast water exchange. We are looking forward to continuing our partnership with Hyde Marine as we work together to ensure shipowners and operators have access to one of the industry’s leading ballast water treatment technologies,” said Rob McBurney, Commercial Director of Cammell Laird. “Hyde Marine’s commitment to providing superior service and support will drive continued success for Cammell Laird clients as the industry works to comply with pending ballast water treatment requirements. Visit www.hydemarine.com for more information about Hyde Marines ballast water management solutions. For additional background on Cammell Laird, visit www.clbh.co.uk . About Calgon Carbon Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner. For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com . About Hyde Marine With more than 100 years in the maritime industry and pioneering development of ballast water treatment technologies, Hyde Marine has become the leading U.S. manufacturer and educator regarding regulations, technologies, installation experiences, and challenges facing this sector. Since its initial launch in 1998, the Hyde GUARDIAN BWTS has rapidly emerged as an industry leader featuring mechanical separation with stacked-disc filtration followed by UV disinfection with more than 265 Hyde GUARDIAN units sold to date for installation in various ship types and sizes around the world. About Cammell Laird Cammell Laird was founded in 1828 and is based on the River Mersey in the Liverpool City Region on the west coast of Britain.