Fitch rates Multitude Bank bonds B-

Fitch Ratings said it assigned Multitude Bank plc upcoming issue of floating-rate subordinated tier 2 bonds due 2023 an expected B- rating. The offering is expected to be around €25 million.

The bonds are rated two notches down from the bank’s B+ issuer rating.

“The two notches from the IDR reflect loss severity, the subordinated status of the bonds and Fitch's view of a heightened likelihood of poor recoveries in the event of non-viability. According to the transaction documents, the holders' rights to payment of any amounts under or in respect of the subordinated Tier 2 bonds may be subject to bail in action, including conversion or write-down in accordance with the E.U. recovery and resolution legislation,” the agency said in a statement.

The outlook is stable.

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