Moody’s assigns ANB Sukuk certificates Baa3

Moody’s Investors Service said it assigned a Baa3(hyb) foreign-currency long-term subordinated rating to ANB Sukuk Ltd.’s planned issuance of backed dollar-denominated subordinated certificates with contractual point of non-viability (PONV) features.

ANB Sukuk Ltd is a special-purpose vehicle established by Arab National Bank. The certificates are direct obligations of Arab National Bank, ranking pari passu with all other tier 2 subordinated debt of Arab National Bank and the holders of the certificates are effectively exposed to Arab National Bank’s tier 2 subordinated credit risk, Moody’s said.

The foreign currency long-term Baa3(hyb) rating is positioned two notches below Arab National Bank’s adjusted baseline credit assessment of baa1. “Similar to most banking systems globally, the positioning reflects: (1) the specific characteristics of this class of securities and their relative ranking in the liability structure of the bank; and (2) Arab National Bank’s adjusted BCA that constitutes the anchor point for positioning debt liabilities on Moody’s global rating scale,” Moody’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.