Moody’s gives Handelsbanken securities Baa3

Moody's Investors Service said it assigned a Baa3 (hyb) rating to the upcoming 'high trigger' additional tier 1 (AT1) securities to be issued by Svenska Handelsbanken AB (senior unsecured Aa3, negative; bank financial strength rating C stable/baseline credit assessment a3).

The outlook on the new rating for the AT1 securities is stable, in line with the outlook on Handelsbanken's unsupported ratings.

These perpetual non-cumulative AT1 securities rank junior to tier 2 capital, pari passu with any other deeply subordinated debt securities and senior to all classes of Handelsbanken's share capital and other capital instruments that qualify as common equity tier 1 (CET1) capital. Coupons may be cancelled in full or in part on a non-cumulative basis at the issuer's discretion or mandatorily if the distributable items are insufficient.

The principal of the securities is partially or fully written down if Handelsbanken's group-level CET1 capital ratio falls below 8% or if Handelsbanken's bank-level CET1 capital ratio falls below 5.125%.

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