Fitch rates Skandinaviska notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Skandinaviska Enskilda Banken’s planned issue of additional tier 1 capital notes.

The notes will be CRD IV-compliant perpetual non-cumulative additional tier 1 instruments, Fitch said.

The expected rating is five notches below the bank’s viability rating of A+ in accordance with the agency’s criteria for assessing and rating bank subordinated and hybrid securities.

The notching reflects the notes’ higher expected loss severity relative to senior unsecured creditors and higher non-performance risk, Fitch said.

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