DBRS downgrades some European subordinated debt

DBRS, Inc. said it downgraded the subordinated and hybrid debt of some European financial institutions, concluding the review that began on May 8.

The agency downgraded

• ABN Amro Bank NV’s subordinated notes to A (low);

• Banco Comercial Portugues, SA’s dated subordinated notes to BB;

• Bank of Scotland plc’s mandatory pay subordinated debt and cumulative discretionary pay subordinated debt to A and non-cumulative discretionary pay subordinated debt to A (low);

• Barclays Bank plc’s subordinated debt to A, hybrid capital securities to A (low) and reserve capital instruments to A (low);

• BCP Finance Bank, Ltd.’s guaranteed dated subordinated notes to BB;

• Banco Popular Espanol SA’s subordinated debt to BBB;

• Belfius Bank SA/NV’s subordinated debt to BBB and junior subordinated debt to BBB (low);

• Caixa Econσmica Montepio Geral’s subordinated debt to BB;

• Credit Suisse AG’s subordinated debt to A (high);

• Deutsche Pfandbriefbank AG’s subordinated debt to BBB (low);

• DZ BANK AG’s mandatory pay subordinated debt to A;

• HBOS plc’s mandatory pay subordinated debt and cumulative discretionary pay subordinated debt to A and non-cumulative discretionary pay subordinated debt to A (low);

• Landesbank Berlin AG’s subordinated debt to A (low);

• Lloyds Banking Group plc’s mandatory pay subordinated debt and cumulative discretionary pay subordinated debt to A (low) and non-cumulative discretionary pay subordinated debt to BBB (high);

• Lloyds Bank plc’s mandatory pay subordinated debt and cumulative discretionary pay subordinated debt to A and non-cumulative discretionary pay subordinated debt to A (low);

• Nationwide Building Society’s subordinated debt to A and permanent interest-bearing shares to A (low);

• Nordea Bank AB dated and undated subordinated debt to A (high) and capital contribution securities to A (low);

• Royal Bank of Scotland NV’s subordinated debt to BBB;

• Skandinaviska Enskilda Banken AB’s dated and undated subordinated debt to A and capital contribution securities to BBB (high);

• Svenska Handelsbanken AB (publ)’s dated and undated subordinated debt to A and capital contribution securities to BBB (high); and

• Swedbank AB (publ)’s dated and undated subordinated debt to A (low) and non-cumulative perpetual capital securities to BBB.

The agency said the downgrades reflect the developments that have been taking place in the position of subordinated and hybrid bond holders of European banks that come under financial stress.

© 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.