Fitch rates Banco Mare Nostrum notes BB-

Fitch Ratings said it assigned an expected rating of BB- to Banco Mare Nostrum, SA's upcoming €175 million subordinated notes.

The subordinated notes are notched down once from the bank’s BB viability rating.

The notching reflects the notes' greater expected loss severity relative to senior unsecured debt, Fitch said.

These securities are subordinated to all senior unsecured creditors, the agency said.

Fitch also said it did not apply additional notching for incremental non-performance risk relative to the viability rating, given that any loss absorption would only occur once the bank reaches the point of non-viability.

The rating on the notes also is sensitive to changes in the bank’s viability rating, the agency said.

© 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.