Moody's Ratings announces completion of a periodic review of ratings of XP Inc.

Moody's Ratings has completed a periodic review of its credit assessments related to XP Inc., a Brazilian financial services company. The review focused on XP Allocation Asset Management Ltda., a subsidiary of XP Investimentos, which was assigned MQ1 Investment Manager Quality Assessment by Moody's América Latina in April 2021. This assessment reflects the firm's strong investment management practices, including a disciplined investment process, robust risk management, and a highly qualified team of professionals.

The MQ1 rating indicates that XP Allocation is considered to have excellent investment management characteristics, although the firm faces challenges in improving risk-adjusted performance and retaining its talent. Moody's noted that the company's funds have met their risk-return objectives and outperformed peers and benchmarks.

The periodic review reaffirmed the firm's adherence to its established investment processes and risk management protocols. However, any significant deterioration in performance, a decline in assets under management, or deviations from current operational standards could lead to a downward revision of the assessment.

This review is part of Moody's ongoing monitoring of asset managers and does not constitute a change in the current credit rating status of XP Inc. Investors are encouraged to consult the latest information available on Moody's website for updates.