Fitch: Barclays notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to Barclays Bank plc's $1 billion 7.75% fixed- to fixed-rate contingent capital notes due April 2023, which are callable in April 2018.

The final rating is in line with the expected rating assigned to the notes March 27, Fitch said.

The notes are subordinated tier 2 instruments without a coupon deferral feature and subject to a 7% capital adequacy trigger, the agency said.

On breach of the trigger, the notes will be automatically written down to zero and the notes cancelled, resulting in loss of principal and future interest for investors, Fitch said.

The notes are rated four notches below Barclays Bank's viability rating of A in accordance with the agency's criteria for rating bank subordinated and hybrid securities.

The notes are notched twice for loss severity to reflect the principal write-down feature, Fitch said, and twice for non-performance risk, reflecting the high incremental risk due to the 7% CET1 ratio trigger compared with the risk reflected in the bank's viability rating.

The notes are rated in line with the $3 billion contingent capital notes issued in November 2012, the agency added.

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