Fitch rates Barclays Africa notes BB

Fitch Ratings said it assigned Barclays Africa Group Ltd.’s (BAGL: BB+/stable/bb+) planned issue of dollar-denominated denominated Basel III-compliant Tier 2 capital notes an expected rating of BB(EXP).

The notes are rated one notch below the bank’s bb+ viability rating. Fitch said the notching includes zero notches for incremental non-performance risk relative to the viability rating and one notch for loss severity.

The agency applied zero notches for incremental non-performance risk, given that write-down of the notes will only occur at the point of non-viability and there is no coupon flexibility.

The one notch for loss severity reflects Fitch's view of below-average recovery prospects for the notes relative to senior creditors in the case of a non-viability event.

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