Fitch rates Standard Bank Group notes BB

Fitch Ratings said it assigned an expected BB rating to Standard Bank Group Ltd.'s proposed dollar-denominated Basel III-compliant tier 2 subordinated notes.

The notes will be issued by Standard Bank Group under its updated $4 billion multi-issuer euro medium-term note program.

The notes qualify as Basel III-compliant tier 2 securities and contain contractual loss absorption features, which will be triggered at the point of non-viability of the issuer, Fitch said.

The proposed notes are rated one notch lower than the bank's BB+ viability rating, the agency said.

This reflects the bank's higher loss-severity risk relative to senior unsecured instruments, which is due to their subordinated status and the presence of a contractual non-viability loss absorption clause, Fitch said.

The proposed notes will rank equally with all subordinated debt issued by the bank, qualifying as tier 2 capital securities, the agency said.

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