Fitch assigns Unicaja notes B+

Fitch Ratings said it assigned Unicaja Banco SA's planned issue of additional tier 1 notes an expected B+ long-term rating.

The notes will be subject to partial or full write-down if Unicaja's consolidated common equity tier 1 ratio falls below 5.125%.

“The expected rating is four notches below Unicaja's bbb- viability rating (VR), which is the baseline notching for this type of debt under Fitch's criteria. This notching reflects poor recoveries due to the notes' deep subordination (two notches) as well as incremental non-performance risk relative to the VR (two notches), given fully discretionary coupon payments and the write-down trigger. The notes also have mandatory coupon restriction features, including where prohibited by the regulator or where a coupon would exceed distributable items,” the agency said in a press release.

The outlook is negative.

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