Moody’s rates KBC Group securities Ba1(hyb)

Moody's Investors Service said it assigned a Ba1(hyb) rating to the €1 billion low-trigger additional tier 1 securities issued by KBC Group NV.

The securities rank junior to tier 2 capital, pari passu with other deeply subordinated debt securities and senior only to common equity tier 1.

The proceeds will be down streamed to KBC Bank on the same deeply-subordinated basis through a mirror transaction.

The agency said the Ba1(hyb) rating reflects KBC Bank's adjusted baseline credit assessment of baa1, Moody's advanced loss given failure analysis, resulting in a position three notches below the bank's adjusted baseline credit assessment, and an assumption of a low probability of government support for this instrument, resulting in no uplift.

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