Fitch publishes Srlev BBB+ rating

Fitch Ratings said it published Srlev NV's long-term issuer default rating of BBB+ with a positive outlook.

The agency also gave Srlev's CHF 105 million perpetual grandfathered restricted tier 1 (gRT1) notes a BBB- rating.

“The notes are rated two notches below Srlev's IDR, comprising one notch for ‘below average’ expected recovery and one notch for ‘moderate’ non-performance risk,” Fitch said in a press release.

Srlev's gRT1 notes were issued with a 7% fixed coupon in 2011, with call dates at the fifth anniversary of the issue and then each year thereafter and a reset rate of the five-year Swiss franc mid swiss swap rate plus 5.625% that became effective at the first call date in 2016.

In case of a winding-up, Slrev's gRT1 notes will rank junior to unsubordinated creditors but rank above present or future classes of share capital. “The level of subordination results in a baseline recovery assumption of 'below average'. We therefore notch down once from Srlev's IDR for expected recovery,” the agency said.

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