Moody's assigns Baa3 to Abanca notes

Moody's Investors Service said it assigned a Baa3 rating to Abanca Corporacion Bancaria SA's new euro-denominated senior unsecured notes.

The senior unsecured notes, referred to as ordinary senior notes by Abanca, are being sold under its €4 billion euro medium-term note and covered bond program.

“The Baa3 rating assigned to the senior unsecured debt securities reflects (1) Abanca's adjusted baseline credit assessment (BCA) of ba1; (2) Moody's advanced loss given failure (LGF) analysis, which indicates a low loss severity for these instruments in the event of the bank's failure, leading to a position one notch above the bank's adjusted BCA; and (3) Moody's assumption of a low probability of government support for this new instrument, resulting in no uplift,” the agency said in a press release.

The outlook is stable.

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