Moody’s rates Transilvania notes Ba1

Moody's Investors Service said it assigned a first-time foreign-currency junior senior unsecured debt rating of Ba1 to Banca Transilvania SA's non-preferred eligible notes due 27 April 2027 and totaling €790 million.

All other ratings and assessments of BT are unaffected by today's rating action.

“The Ba1 junior senior unsecured rating reflects BT's ba1 baseline credit assessment (BCA) and adjusted BCA, as well as the results of Moody's advanced loss given failure (LGF) analysis, which takes into account the severity of loss faced by the different liability classes in resolution

“For BT's junior senior unsecured debt instruments, the rating agency's forward-looking Advanced LGF analysis indicates a moderate loss severity in the event of the bank's failure, leading to a rating at the level of the bank's Adjusted BCA. This reflects the loss absorption provided by more junior ranking instruments and the expected volumes of junior senior debt for the bank to be issued in order to comply with the minimum requirement for own funds and eligible liabilities (MREL),” Moody’s said in a press release.

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