S&P rates Handelsbanken notes BBB

Standard & Poor's said it assigned its BBB long-term issue rating to the proposed perpetual additional tier 1 capital notes to be issued by Swedish bank Svenska Handelsbanken AB (AA-/negative/A-1+).

This is Svenska Handelsbanken's first additional tier 1 security (AT1) issuance.

The agency understands that, like those of other Swedish banks, the AT1 issuance will be compliant with the European Union's latest Capital Requirements Directive (CRD IV), which implements Basel III in the European Union.

Also, S&P understand that the notes will rank senior to ordinary shares, but will be subordinated to more senior debt, including Svenska Handelsbanken's tier 2 debt.

In accordance with its January 2015 criteria for hybrid capital instruments, the BBB rating reflects S&P’s analysis of the proposed instruments and its assessment of Svenska Handelsbanken's standalone credit profile at a+.

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