Caterpillar Financial Services Corporation

Risks

• Disruptions or volatility in global financial markets could adversely impact the industries and markets in which we serve and operate
• Failure to maintain our credit ratings would increase our cost of borrowing and could adversely affect our cost of funds, liquidity, competitive position and access to capital markets
• Changes in interest rates, foreign currency exchange rates or market liquidity conditions could adversely affect our earnings and/or cash flows
• Our business is significantly influenced by the credit risk associated with our customers and an increase in delinquencies, repossessions or net losses could adversely affect our results
• A decrease in the residual value of the equipment that we finance could adversely affect our results
• Restrictive covenants in our debt agreements could limit our financial and operating flexibility
• Changes in government monetary or fiscal policies may negatively impact our results
• Our global operations are exposed to political and economic risks, commercial instability and global events beyond our control in the countries in which we operate
• The success of our business depends upon the demand for Caterpillar’s products
• Changes in the marketing, operational or administrative support that we receive from Caterpillar could adversely affect our results
• The success of our business depends on our ability to develop, produce and market quality products and services that meet our customers’ needs
• Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services
• Changes in accounting guidance could have an adverse effect on our results of operations