Moody’s assigns Ba1 (hyb) to Banorte notes

Moody's Investors Service said it assigned provisional Ba1 (hyb) subordinated debt ratings to the two proposed dollar-denominated cumulative, non-convertible, dated, loss absorbing Tier 2 subordinated capital notes to be issued by Banco Mercantil del Norte, SA (Banorte) through the bank's Cayman Islands branch, Banco Mercantil del Norte, SA (Cayman I).

The two capital notes, which may be issued in an aggregate amount of up to $1.5 billion, are Basel III-compliant, and the terms and conditions have been designed to qualify the instruments as Tier 2 capital.

Management expects one of the issuances to have a 10-year maturity and the other to have a 15-year maturity.

Banorte's other ratings are not affected by this transaction.

Moody’s said the provisional Ba1 (hyb) ratings are positioned two notches below Banorte's baa2 adjusted baseline credit assessment (adjusted BCA), in line with Moody's standard notching guidance for cumulative non-convertible subordinated securities with contractual loss absorption provisions. The principal of the notes may be fully or partially written-down at or close to the point of non-viability (PONV), such as when the bank is subject to financial rehabilitation, and/or upon the breach of capital triggers.

© 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.