Moody’s gives Abanca bonds Ba3

Moody's Investors Service said it assigned a Ba3 long-term domestic-currency subordinated debt rating to Abanca Corporacion Bancaria, SA's planned euro-denominated plain vanilla tier 2 bond issuance.

The Ba3 rating assigned to the subordinated debt obligations of Abanca reflects the securities' loss absorbing features in the case of failure, being subordinated to senior obligations, the agency said.

The rating is positioned one notch below the bank's adjusted baseline credit assessment of ba2, in line with Moody's standard notching guidance for plain vanilla subordinated debt instruments.

The rating does not incorporate any uplift from government support, Moody’s noted.

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