S&P corrects Alpha tier 2 notes

S&P said it lowered to CCC from CCC+ its issue ratings on the tier 2 notes issued under Alpha Bank Services and Holdings SA's and Alpha Bank SA's $15 billion euro medium-term note program.

“We should have affirmed the issue ratings on these subordinated notes at CCC when we raised our long-term issuer credit ratings on both Alpha Services and Holdings and Alpha Bank, together with our issue ratings on their debt, on April 25, 2023.

“This error correction brings the issue ratings on the tier 2 notes into line with our hybrid capital criteria, whereby we deduct one notch from the issue ratings on tier 2 instruments to reflect the nonpayment risk stemming from the E.U. regulations that allow a principal write-down, or conversion into common equity, of such instruments at the point of nonviability,” S&P said in a press release.

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