Fitch: AgriBank preferreds BBB

Fitch Ratings said it assigned a BBB rating to AgriBank, FCB's $250 million non-cumulative perpetual preferred issuance.

The issuance also was placed on Rating Watch negative, reflecting uncertainty surrounding the resolution of the United States government's Rating Watch negative.

Quarterly coupons on the issuance are payable Jan. 1, April 1, July 1 and Oct. 1 of each year, Fitch said.

The securities are perpetual, but are callable by the issuer on the first day of January, April, July and October of each year beginning Jan. 1, 2024, the agency said.

Bank hybrid securities, such as this preferred issuance, are typically notched down from the issuing entity's viability rating, Fitch said.

However, in the absence of a viability rating as is the case with AgriBank, the hybrids are notched from the issuing entity's long-term issuer default rating, which is AA- for the bank, the agency said.

The proceeds are intended to increase AgriBank's regulatory capital levels and for general corporate purposes, the agency said.

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