Fitch gives Swedbank convertibles BBB-

Fitch Ratings said it has assigned Swedbank AB's (A+/positive/F1) issue of additional tier 1 convertible notes a final rating of BBB-.

The notes will be CRD IV-compliant perpetual non-cumulative additional tier 1 instruments and are subject to automatic conversion if the consolidated common equity tier 1 ratio of Swedbank falls below 8%, and any coupon payments may be canceled at the discretion of the bank, the agency said.

The agency noted that the rating is five notches below Swedbank's viability rating of A+ in accordance with Fitch'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.

© 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.