Notching untuk non-performance risk adalah satu, dibandingkan dua pada umumnya karena risiko non-performance sebagian dinetralisasi dengan potensi dukungan perusahaan induk.
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Fitch considers the preference shares to have 'minimal' non-performance risk with notching set two below the Issuer Default Rating (IDR) based on 'Poor' recovery expectations, with no additional notching for non-performance.
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In addition, they are notched down twice for non-performance risk.
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There will be no notching due to incremental non-performance risk.
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Fitch regards these features as leading to moderate non-performance risk.
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Refrain from expressing regret or remorse and mentioning non-performance-related specifics.
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We notch down from the IDR in accordance to our assessment of loss severity and non-performance risk: once for Tier 2 debt, for loss severity; three times for its upper tier two debt (one for loss severity and two for incremental non-performance risk) and four times for its other capital securities (two for loss severity and two for incremental non-performance risk).
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The risk of non-performance on bank capital instruments may therefore have risen.
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Shinhan's notes have minimal non-performance risk relative to its senior unsecured debt.
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The notching reflects (i) incremental non-performance risk relative to the bank's VR due to the option to cancel coupon payments at CBM's discretion; and (ii) likely high loss severity in case of non-performance due to the instrument's deep subordination.
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These notes have minimal non-performance risk relative to the banks' senior unsecured debt.
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KEB Hana's notes have minimal non-performance risk relative to its senior unsecured debt.
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As such, no notches are deducted from the VR for incremental non-performance risk.
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However, for foreign-owned banks with institutional support from their parents, as in the case of KEB Hana Indonesia, notching for non-performance is reduced to one, as we view that the risk of non-performance is partly neutralised by potential parent support.
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PNC's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while PNC's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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CMA's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while CMA's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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FITB's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while FITB's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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KEY's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while KEY's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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STI's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while STI's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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MTB's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while MTB's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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WFC's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while WFC's trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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This comprises of zero notching for non-performance risk and two notches for loss severity.
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The notching includes one notch for loss severity and zero notches for non-performance risk.
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ZION's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, while ZION's trust preferred securities are notched four times from the VR (two times from the VR for loss severity and two times for non-performance).
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IntesaSP's AT1 notes are rated five notches below the bank's VR, comprising two notches for loss severity relative to senior unsecured creditors and three notches for incremental non-performance risk relative to the VR. The notching for non-performance risk reflects the instruments' fully discretionary interest payment.
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The notching reflects higher expected loss severity relative to senior unsecured creditors and higher non-performance risk.
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" They could also notify the 15-member U.N. Security Council that the issue constitutes "significant non-performance.
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" They could also notify the 15-member U.N. Security Council that the issue constitutes "significant non-performance.
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Not so in the EcoSport, where the handling may even eclipse the non-performance trim Ford Focuses.
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" They also could notify the 15-member U.N. Security Council that the issue constitutes "significant non-performance.
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The notes' rating is also sensitive to a change in notching due to a revision in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in Garanti's Long-Term IDR, or in its assessment of loss severity in case of non-performance.
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Among these conditions was that the securities in the reports must be selected using objective, non-performance criteria.
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In addition, they are also notched down three times for non-performance risk, reflecting fully discretionary coupon omission.
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In addition, they are notched down three times for high non-performance risk, reflecting fully discretionary coupon omission.
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The Recovery Ratings are sensitive to Fitch's assessment of potential recoveries for creditors in case of default/non-performance.
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In addition, they are notched down three times for very high non-performance risk, reflecting fully discretionary coupon omission.
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This is in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles.
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The ratings of MPS's Lower Tier 11533 and Upper Tier 2 debt reflect a high risk of non-performance.
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DFCC's RR is sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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Non-performance risk arises from UOB's and MAS's unrestricted discretion in cancelling any periodic distribution on the proposed securities.
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There is no notching for non-performance risk as the notes' key terms exclude going-concern loss absorption features.
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There is no additional notching for non-performance risk, as Fitch sees this risk as minimal under its criteria.
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KUVEYT TURK'S SUBORDINATED DEBT The rating is sensitive to a change in Kuveyt Turk's Long-Term IDR, a revision in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in the IDR, or a change in our assessment of loss severity in case of non-performance.
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For non-performance risk, notching is linked to the likelihood that any loss-absorption feature of the instrument is triggered.
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In this event we would be more likely to notch down three steps from the IDR for non-performance risk.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles.
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DFCC's Recovery Rating is sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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The notching includes zero notches for incremental non-performance risk relative to the VR and one notch for loss severity.
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There is no additional notching for non-performance risk, as Fitch views this risk as "minimal" under the agency's criteria.
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This results in Fitch's assessment of 'moderate' risk of non-performance and consequently a further notch down from the IDR.
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They are rated three notches below BNPP's VR, comprising one notch for loss severity and two for non-performance risk.
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In that case the issue will be downgraded based on Fitch's expectations about the form and duration of non-performance.
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In addition, they are notched down three times for very high non-performance risk due to fully discretionary coupon omission.
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In addition, they are also notched down three times for very high non-performance risk, reflecting fully discretionary coupon omission.
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BAC's subordinated debt is one-notch down from BAC's VR, its preferred stock is five notches from the VR, which encompasses two notches for non-performance and three notches for loss severity, and BAC's trust preferred stock is four notches from the VR, encompassing two notches for non-performance and two notches for loss severity.
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BAC's subordinated debt is one notch down from BAC's VR, its preferred stock is five notches from the VR, which encompasses two notches for non-performance and three notches for loss severity, and BAC's trust preferred stock is four notches from the VR, encompassing two notches for non-performance and two notches for loss severity.
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The rating of CBM's perpetual additional Tier 1 notes is three notches below the bank's VR. The notching reflects: incremental non-performance risk relative to the bank's VR due to the option to cancel coupon payments at CBM's discretion; and likely high loss severity in case of non-performance due to the instrument's deep subordination.
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Fitch's criteria allows for wider notching for incremental non-performance if Fitch has particular concerns around the probability of coupon omission.
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Hybrid securities ratings are in accordance with Fitch's criteria and assessment of the instruments' non-performance and loss severity risk profiles.
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FHN's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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FITB's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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WTFC's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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Mudit cannot get over his "non-performance" and Sugandha is a little bewildered that her fiancé is so obsessed with it.
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The notes do not have going-concern loss-absorption features, and hence there is no additional notching for non-performance risk.
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USB's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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Fitch's criteria allow for wider notching for incremental non-performance if Fitch believes there is a heightened probability of coupon omission.
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COF's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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Hybrid securities are rated five notches below the VR, reflecting three notches for non-performance and two notches for loss severity.
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RF's preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance.
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No additional notching from the VR for non-performance is applied, as the VR already captures the point of non-viability.
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Goldman's subordinated debt is rated one-notch below Goldman's VR, its preferred stock is rated five notches below the VR (which encompasses two notches for non-performance and three notches for loss severity), and its trust preferred stock is rated four notches below the VR (encompassing two notches for non-performance and two notches for loss severity).
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Non-performance risk arises from the unrestricted discretion that UOB and MAS have in cancelling any periodic distribution on the proposed securities.
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Maintenance of sufficient ADI is an important consideration in Fitch's assessment of non-performance risk on AT1 and other hybrid capital instruments.
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Legacy upper Tier 2 securities are rated three notches below San UK's VR (one for loss severity and two for non-performance).
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The two banks' Recovery Ratings are sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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The notes do not have going-concern loss absorption features and hence no additional notching for non-performance risk has been applied.
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No additional notching has been ascribed to non-performance risk, as Fitch regards it to be minimal relative to the VR assigned.
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The one notch for loss severity reflects Fitch's view of below-average recovery prospects for the notes in case of non-performance.
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The rating of the notes is also sensitive to a change in Fitch's assumptions about the notching for incremental non-performance risk.
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The securities are rated three notches below FWD Limited's Issuer Default Rating (IDR) due to their subordination status and non-performance risk.
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We have applied a baseline recovery assumption of 'below average' and a non-performance risk assessment of 'moderate' to the Tier 2 notes.
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This consists of zero notch for non-performance risk and two for loss severity, reflecting the limited recovery prospects for Taiwanese B22T28256 notes.
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The Recovery Rating on DFCC's notes is sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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TCB's preferred stock is notched five levels below its VR of 'bbb-', two times for loss severity and three times for non-performance.
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No additional notching from the Viability Rating for non-performance is applied, as the Viability Rating already captures the point of non-viability.
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In perpetual form the optional interest deferral feature does not constitute any additional non-performance risk relative to the mandatory interest deferral features.
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The notching reflects the notes' greater expected loss severity relative to senior unsecured creditors (two notches) and high non-performance risk (three notches).
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The chairman of its board said in March that Jadiah Mwarania, a 27-year veteran at the company, was sacked for non-performance.
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One additional notch is applied for non-performance risk, which Fitch views as minimal since interest deferral is at the issuer's sole discretion.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES FMBI's subordinated debt is notched one level below its VR for loss severity, while any preferred stock is notched five levels below its VR, two times for loss severity and three times for non-performance, and trust preferred securities are notched two times from the VR for loss severity and two times for non-performance.
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Vakifbank's subordinated debt rating is sensitive to a change in the bank's VR. The notes' rating is also sensitive to a change in notching due to a change in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in Vakifbank's VR, or in its assessment of loss severity in case of non-performance.
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KEY RATING DRIVERS The notes are rated five notches below IntesaSP's 'bbb+' Viability Rating (VR), comprising two notches for loss severity relative to senior unsecured creditors and three notches for incremental non-performance risk relative to IntesaSP's VR. The notching for non-performance risk reflects the instruments' fully discretionary interest payment, which Fitch considers the most easily activated form of loss absorption.
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The securities are notched twice for loss severity to reflect the conversion into common shares on a breach of the 7% fully loaded CET1 ratio trigger, and three times for incremental non-performance risk relative to the VR. The notching for non-performance risk reflects the instruments' fully discretionary coupons, which Fitch views as the most easily activated form of loss absorption.
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Cross-border deals typically include clauses that allow for non-performance during force majeure events, said Vanessa Miller, a U.S. lawyer at Foley & Lardner.
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We are therefore more likely to notch down insurance RT15493s by two rather than three notches relative to the IDR for non-performance risk.
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The notes are currently rated four notches below the Viability Rating - two for high loss severity and two for the incremental non-performance risk.
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The perpetual debt ratings of KKB, BCC and ATF are rated two notches lower, reflecting greater non-performance risk and more limited recovery expectations.
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We apply no additional notching for non-performance as the point of non-viability broadly coincides with what we express in the anchor rating.
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The notes are rated three notches below Phoenix's IDR of 'A-', comprising two notches for expected recovery and one for moderate non-performance risk.
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This notching reflects the incremental non-performance risk relative to that captured by the VR and the loss severity (two notches) given its deeper subordination.
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As a result, the rating is notched down two times from the IDR; one notch for recovery prospects and one notch for non-performance risk.
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The notching for incremental non-performance risk reflects the notes' fully discretionary coupons, which Fitch views as the most easily activated form of loss absorption.
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The Recovery Ratings on the two banks' notes are sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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Porsche already makes 2911 models above the 22020 mark so it's likely CEO Oliver Blume was referring to a non-performance version of the 22021.
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As a result, the rating is notched down three times from the IDR; two notches for recovery prospects and one notch for non-performance risk.
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We have not applied any additional notching from the Viability Rating for non-performance, as the Viability Rating already captures the point of non-viability.
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Fitch rates Danske's other Tier 2 instruments three notches below the VR to reflect loss severity (one notch) and incremental non-performance risk (two notches).
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CIBC's preferred stock is five notches below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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Most hybrid capital instruments (see list below) are notched five times from GFG's VR (twice for loss severity, three times for incremental non-performance risk).
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BMO's preferred stock is five notches below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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NBC's preferred stock is five notches below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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Fitch classifies the interest deferral features on this instrument as "minimal" non-performance risk, with no additional notching applied, in line with Fitch's notching criteria.
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In addition, they are notched down twice for high non-performance risk, as the trigger can result in contractual loss absorption ahead of non-viability.
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As the notes do not contain any coupon deferral features, Fitch has not applied any notches for incremental non-performance risk (relative to senior obligations).
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"While we do strive to drive efficiencies, there is no scope to berate any employee on account of non-performance or deficient performance," he said.
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RATING SENSITIVITIES The issue's rating is sensitive to changes in Landshypotek's VR and to a change in Fitch's assessment of loss severity or non-performance risk.
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The Recovery Ratings of NSB and Bank of Ceylon are sensitive to Fitch's assessment of potential recoveries for creditors in case of default or non-performance.
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"As a result my physician prescribed a non-performance enhancing medication for high blood pressure that contained hydrochlorothiazide, water pill," she wrote on her Twitter page.
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As a result, the rating is notched down three times from the IDR, comprising two notches for recovery prospects and one notch for non-performance risk.
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The notching reflects higher expected losses in case of liquidation but no additional notching for non-performance, given its gone concern characteristics (plain vanilla subordinated debt).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES UMPQ's trust preferred securities are notched two times below its VR for loss severity and two times for non-performance.
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Fitch takes a group view on the credit profile from a failure perspective, while the IDR reflects each entity's non-performance (default) risk on senior debt.
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Fitch may also widen the notching if non-performance risk increases, for example, if the bank fails to maintain reasonable headroom above the minimum capital adequacy ratios.
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The subordinated debt ratings are notched down once from the VRs, which incorporates zero notches for incremental non-performance risk and a notch for higher loss severity.
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The securities' rating is also sensitive to a change in Fitch's assessment of the probability of their non-performance relative to the risk captured in AAM's IDR.
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Hybrid securities issued by KBC Bank are rated four notches lower than KBC Bank's VR (two notches for non-performance and two notches for relative loss severity).
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The three notches for incremental non-performance risk reflect the notes' non-cumulative cancellable coupons, which Fitch views as the most easily activated form of loss absorption.
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Notching for incremental non-performance risk reflects the notes' fully discretionary non-cumulative interest payments, which Fitch views as the most easily activated form of loss absorption.
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Fitch has not applied additional notching to the notes for non-performance risk according to Fitch's criteria, as the notes have no going-concern loss-absorption features.
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The notching reflects higher expected losses in the case of liquidation but no additional notching for non-performance, given its gone concern characteristics (plain-vanilla subordinated debt).
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The securities are rated five notches below CYBG's VR. The securities are notched twice for loss severity to reflect the conversion into common shares on a breach of the 7% fully loaded CET13 ratio trigger, and three times for incremental non-performance risk relative to the VR. The notching for non-performance risk reflects the instruments' fully discretionary coupons, which Fitch considers as the most easily activated form of loss absorption.
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RATING SENSITIVITIES As the notes are notched down from Vakifbank's VR, their rating is primarily sensitive to a change in the VR. The notes' rating is also sensitive to a change in notching due to a revision in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in Vakifbank's VR, or in its assessment of loss severity in case of non-performance.
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The securities are rated five notches below CYBG's VR. The securities are notched twice for loss severity to reflect the conversion into common shares on a breach of the 7% fully loaded CET1 ratio trigger, and three times for incremental non-performance risk relative to the VR. The notching for non-performance risk reflects the instruments' fully discretionary coupons, which Fitch considers as the most easily activated form of loss absorption.
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The notching reflects (i) higher loss severity relative to senior unsecured creditors; and (ii) non-performance risk due to the option to cancel coupon payments at Tinkoff's discretion.
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The permanent interest-bearing securities (PIBS) are rated four notches below Nationwide's VR, reflecting two notches for their deep subordination and two notches for incremental non-performance risk.
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TD's preferred and trust preferred stocks are five notches below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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SUBORDINATED BEBT Subordinated debt is sensitive to changes in Volksbank's VR. It is also sensitive to a change in Fitch's assessment of loss severity or non-performance risk.
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Scotia Bank Capital Trust's preferred stock is five notches below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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Based on these analyses, we have redirected some VMMC resources to these high-performing partners and sites and only closed sites for poor service delivery or non-performance.
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Upper Tier 2 instruments are rated three notches below the VR, including one notch for loss severity and two notches for incremental non-performance risk, reflecting cumulative coupon deferral.
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Alfa's 'BB' subordinated debt rating is notched down once from the bank's VR, which incorporates zero notches for incremental non-performance risk and a notch for higher loss severity.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES FRC's preferred stock is notched five levels below its VR of 'a-', two times for loss severity and three times for non-performance.
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Given the historical non-performance of federal job-training programs and the department's fondness for this money pit, we should perhaps expect this report to be released on Dec.
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Upper Tier 2 instruments are rated three notches below the VR, including one notch for loss severity and two notches for incremental non-performance risk reflecting cumulative coupon deferral.
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The notching factors in both the loss severity in a potential liquidation scenario and non-performance risk, since coupons of the notes are deferrable on a non-cumulative basis.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES FHN's preferred stock is notched five levels below its VR of 'bbb-', two times for loss severity and three times for non-performance.
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RATING SENSITIVITIES IDRS, NATIONAL RATINGS AND SENIOR DEBT As the notes are notched down from Vakifbank's VR, their rating is primarily sensitive to a change in the VR. The notes' rating is also sensitive to a change in notching due to a revision in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in Vakifbank's VR, or in its assessment of loss severity in case of non-performance.
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The securities are rated five notches below CYBG's 'bbb+' VR. The securities are notched twice for loss severity to reflect the conversion into common shares on a breach of the 7% fully loaded CET1 ratio trigger, and three times for incremental non-performance risk relative to the VR. The notching for non-performance risk reflects the instruments' fully discretionary coupons, which Fitch considers as the most easily activated form of loss absorption.
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Thus, these ratings have been upgraded due to the upgrade of the VR. The preferred stock is notched 2x from the VR for loss severity, and 2x for non-performance.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES SBS's subordinated debt is notched down from the VR, reflecting Fitch's assessment of incremental non-performance risk relative to the VR and loss severity.
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JSIB's Taiwanese Basel III Tier 2 (B3T2) capital is rated two notches below the issuer's anchor rating, comprising zero notching for non-performance risk and two notches for loss severity.
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Under a dispute process, Iran could argue the U.S. withdrawal and Washington's sanctions campaign constitute "significant non-performance" and "treat the unresolved issue as grounds to cease performing its commitments".
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DFS's preferred stock ratings are rated five notches below DFS's VR of 'bbb+' in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profile.
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KEY RATING DRIVERS The notes are rated three notches below AXA's 'A' Issuer Default Rating (IDR), two for a recovery assumption of "Poor" and one for moderate non-performance risk.
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The 'B-' rating of these securities reflects a bespoke analysis of the risks of non-performance and loss severity in the absence of a Viability Rating or alternative anchor rating.
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The upgrade of GPB's 'new-style' subordinated debt issues is the result of a reassessment of the risk of non-performance on these instruments by Russian state-owned/controlled banks.
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The securities' ratings are also sensitive to changes in Fitch's assessment of loss severity or non-performance risk relative to that captured in the banks' VRs, although these are unlikely.
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Upper Tier 0003 instruments are rated three notches below the VR, including one notch for loss severity and two notches for incremental non-performance risk due to cumulative coupon deferral.
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Upper Tier 2 notes and preferred shares are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in the banks' VRs.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES LBS's subordinated debt is notched down from the VR reflecting Fitch's assessment of their incremental non-performance risk relative to the VR and loss severity.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES LBS's subordinated debt is notched down from the VR, reflecting Fitch's assessment of their incremental non-performance risk relative to the VR and loss severity.
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This is in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles, which have thus been affirmed due to the affirmation of the IDR.
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The 'C' ratings of its Tier 1 instruments and preferred securities reflect their non-performance and Fitch's expectation that the securities are unlikely to resume coupon payments in the near future.
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ACGL's hybrid securities ratings could be lowered by one notch to reflect non-performance risk should Fitch view Bermuda's regulatory environment as becoming more controlling in its supervision of (re)insurers.
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The ratings for these instruments are notched down four times from the bank's VR, two notches for loss severity relative to average recoveries and two notches for incremental non-performance risk.
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Legacy Tier 1 securities are rated four notches below the VR, comprising two notches for loss severity, and two further notches for non-performance risk due to partly discretionary coupon omission.
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RNR's hybrid securities ratings could be lowered by one notch to reflect non-performance risk should Fitch view Bermuda's regulatory environment as becoming more controlling in its supervision of (re)insurers.
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The subordinated notes have been rated three notches below NN's 'A' Issuer Default Rating (IDR), reflecting two notches for the level of subordination and one notch for 'moderate' non-performance risk.
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The RWN on the bons de participations and the Tier 2 notes reflects the RWN on the issuer/guarantor's and our unchanged assessment of loss severity and incremental non-performance risk.
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So that when you sit down with somebody and you talk about their non-performance, you've also got to look in the mirror and see: Are you giving them good direction?
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HT1 Funding GmbH's Tier 1 securities, which have a distributable profit trigger, are rated four notches below CBK's VR, comprising two notches each for loss severity and for non-performance risk.
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BB plc's upper Tier 2 instruments are rated three notches below the VR, comprising one notch for loss severity and two notches for incremental non-performance risk, reflecting cumulative coupon deferral.
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Under the deal's dispute process, Iran could argue the U.S. withdrawal and Washington's sanctions campaign constitute "significant non-performance" and "treat the unresolved issue as grounds to cease performing its commitments".
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Woori Bank's legacy hybrid securities are rated four notches below the bank's VR, in line with Fitch's criteria, to reflect their high loss severity (two notches) and non-performance risk (two notches).
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If the bank cancels any coupon payment or at least partially writes off the principal, the issue will be downgraded based on Fitch's expectations about the form and duration of non-performance.
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In Fitch's opinion, their probability of non-performance is equivalent to that of Interbank's senior bonds but, they would entail a higher loss in case of default due to their subordinated nature.
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RY's subordinated debt is notched one level below its VR of 'aa' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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Fitch's standard approach is to notch twice for non-performance risk to account for deferral risk and our view that deferral of payment is likely to be triggered before any write-down.
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Fitch did not apply additional notching for incremental non-performance risk relative to the VR given that any loss absorption would only occur once the bank reaches the point of non-viability.
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The rating of the subordinated debt at 'B/RR6' is two-notches below NewStar's Long-Term IDR, reflecting Fitch's assessment of the instrument's respective non-performance and relative loss severity risk profile.
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TD's subordinated debt is notched one level below its VR of 'aa-' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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CIBC's subordinated debt is notched one level below its VR of 'aa-' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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Fitch does not apply additional notching for incremental non-performance risk relative to the VR given that any loss absorption would only occur once the bank reaches the point of non-viability.
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BNS's subordinated debt is notched one level below its VR of 'aa-' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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BMO's subordinated debt is notched one level below its VR of 'aa-' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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NBC's subordinated debt is notched one level below its VR of 'aa-' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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The notching comprises two notches for non-performance risk, based on standard and less-easily triggered profit and capital thresholds for coupon omission and deferral, and two notches for poor recovery prospects.
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Shinhan's legacy hybrid securities are rated four notches below the bank's VR, in line with Fitch's criteria, to reflect the securities' high loss-severity (two notches) and non-performance risk (two notches).
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The ratings are also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their non-performance relative to the risk captured in the VRs.
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Dresdner Funding Trust I's securities, which have a regulatory capital ratio trigger, are rated three notches below CBK's VR, comprising two notches for loss severity and one notch for non-performance risk.
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Some increased non-performance and larger loan loss rates are likely if the economy slows down following Brexit, but this will be from low levels and mitigated by a moderate risk appetite.
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Banorte's global junior subordinated debt is rated four notches (-4) below the bank's VR. The ratings are driven by Fitch's approach to factoring non-performance risk (-2 notches) and degrees of subordination (-103).
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The 'BB+(EXP)' rating is therefore two notches below Telefonica's Long-Term Issuer Default Rating (IDR), which reflects the securities' increased loss severity and heightened risk of non-performance relative to senior obligations.
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Thus, Fitch has affirmed these ratings due to the affirmation of the VR. FMBI's trust preferred stock is notched two times from the VR for loss severity, and two times for non-performance.
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Subordinated Debt The bank's Tier 2 subordinated preferred capital notes are rated three notches (-3) below the bank's VR; one notch for loss severity (-1) and two notches for non-performance risk (-2).
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Subordinated debt and other hybrid capital securities issued by IntesaSP are notched down from the VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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We have applied to the Tier 2 notes a baseline recovery assumption of 'poor', reflecting the level of subordination, and a non-performance risk assessment of 'moderate', reflecting the mandatory interest deferral feature.
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We have applied a baseline recovery assumption of 'poor' to the notes, reflecting the level of subordination, and our assessment of 'moderate' non-performance risk due to the notes' mandatory interest deferral features.
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The preferred securities of Scotia Capital Trust are non-cumulative preferred securities which are notched five below the VR, made up of two notches for non-performance and three notches for loss severity.
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For subordinated debt issued under Basel II (B2T2) or Basel III (B3T2), the anchor rating - which best reflects non-performance risk - is the higher of the VR or support-driven Long-Term IDR.
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Consequently, any payment in kind (instead of cash payments) would be viewed as non-performance of the notes and would consequently constitute a default of the issuer under Fitch's Global Bank Rating Criteria.
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The two notches for the incremental non-performance risk are lower than the typical three notches Fitch would apply to a Korean commercial bank's AT1 notes with similar terms and conditions to IBK's.
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Other legacy Tier 11533 securities are rated four notches below the VR, comprising two notches for higher-than-average loss severity, and two further notches for non-performance risk, reflecting partly discretionary coupon omission.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES AF's preferred securities are rated five notches below its VR. Preferred stock is notched two times from the VR for loss severity, and three times for non-performance.
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The expected rating has been set two notches down from BHI's IDR to reflect a standard assumption of "poor" recoveries for preferred securities in a default, with no additional notching for non-performance risk.
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The notes are rated two notches below the Society of Lloyd's IDR of 'A+' to reflect their subordination (one notch) and 'moderate' risk of non-performance (one notch), in line with Fitch's notching criteria.
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No notching is applied for incremental non-performance risk as the write-down of the notes will only occur after the point of non-viability is reached and there is no prior coupon flexibility.
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HYBRID SECURITIES Hybrid capital issued by EWBC and its subsidiaries are all notched down from the VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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Legacy Tier 1 securities are rated four notches below the VR, comprising two notches for higher-than-average loss severity, and two further notches for non-performance risk due to partly discretionary coupon omission.
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The permanent interest- bearing shares (PIBS) are rated four notches below the VR: two notches for loss severity and two notches for incremental non-performance risk in the form of potential non-payment of coupon.
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Other legacy Tier 1 securities are rated four notches below the VR, comprising two notches for higher-than-average loss severity, and two further notches for non-performance risk due to partly discretionary coupon omission.
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The ratings of the hybrid securities are also sensitive to changes in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured by KBC Bank and KBC Group's VRs.
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The National long-term ratings of two legacy upper Tier 2 notes issued by FRB are notched three times from the bank's National Long-Term rating to reflect higher loss severity and non-performance risk.
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No notching is applied for incremental non-performance risk because write-down of the notes will only occur once the point of non-viability is reached and there is no coupon flexibility before non-viability.
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No notching is applied for incremental non-performance risk because there is no coupon flexibility prior to non-viability and the notes would only be written down once the point of non-viability is reached.
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Of the latter, compared with new CRD IV-compliant Tier 2 notes, Fitch has applied an additional single notch for incremental non-performance risk to legacy issues because of the issuer's ability to defer coupons.
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The preferred stock ratings include two notches for loss severity given these securities' deep subordination in the capital structure, and three notches for non-performance given that the dividends are non-cumulative and fully discretionary.
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The banks' subordinated debt ratings are notched down once from the banks' VRs, which incorporates zero notches for incremental non-performance risk and one notch for higher loss severity relative to senior unsecured debt holders.
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However, Fitch considers that parental support partially mitigates non-performance risk and hence the GF SAN Mexico's AT1 securities are rated at the level that would be assigned to equivalent securities issued by its parent.
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KEY RATING DRIVERS The securities are rated five notches below UOB's 'aa-' Viability Rating, comprising two notches for loss severity and three notches for non-performance risk, in accordance with Fitch's Global Bank Rating Criteria.
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The notes are rated two notches below Beazley Re's Issuer Default Rating (IDR) of 'A', to reflect their subordination (one notch) and moderate risk of non-performance (one notch), in line with Fitch's notching criteria.
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The rating would also be downgraded if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the bank's VR or if the instrument becomes non-performing, i.e.
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Legacy Tier 1 securities are rated four notches below the VR, comprising two notches for higher-than-average loss severity, and two further notches for non-performance risk, reflecting that coupon omission is partly discretionary.
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SUBORDINATED DEBT The instrument ratings are sensitive to our assumptions on the anchor rating, the relative loss severity and non-performance of the notes, none of which we expect to change unless our criteria changes.
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The other three notches represent Fitch's assessment of the incremental non-performance risk of the securities taking into account their fully discretionary coupon payments, which Fitch considers the most easily triggered form of loss absorption.
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The notes' rating is also sensitive to changes in Fitch's assessment of loss severity of the notes or of the risk of their non-performance relative to the risk captured in Man's Long-Term IDR.
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Legacy Tier 1 securities are rated four notches below the VR, reflecting higher-than-average loss severity (two notches), as well as high risk of non-performance (an additional two notches) given partial discretionary coupon omission.
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The permanent interest-bearing shares (PIBS) are rated four notches below the VR: two notches for their deep subordination and two notches for incremental non-performance risk in the form of potential non-payment of coupon.
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No additional notching was applied for incremental non-performance risk as the write-down of the notes will only occur only after the point of non-viability is reached and there is no prior coupon flexibility.
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No notching is applied for incremental non-performance risk because write-down of the notes will only occur once the point of non-viability is reached and there is no coupon flexibility prior to non-viability.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other issued hybrid capital are notched down from the VR, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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We do not expect non-performance risk to increase following the re-domiciliation as we believe it is unlikely the bank will be subject to higher capital requirements or operate with a materially lower capital buffer.
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The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the issuers' VRs.
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KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES EMIG's trust preferred securities are rated 'B+', two notches below EMIG's 'bb' VR. The notch differential reflects loss severity and an assessment of incremental non-performance risk.
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Legacy Tier 1 notes are notched down four times from the VR, two notches for loss severity for deep subordination and another two for non-performance risk as coupon deferral is constrained by look-back clauses.
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High and low trigger additional Tier 1 instruments are rated five notches below the VR. The notes are notched twice for loss severity, and three times for non-performance risk due to fully discretionary coupon omission.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES DCOM's trust preferred issuances are rated four notches below DCOM's Viability Rating (VR) of 'bbb' in accordance with Fitch's assessment of the instruments' non-performance and loss severity risk profiles.
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This reflects two notches for loss severity in light of the notes' deep subordination and three notches for additional non-performance risk relative to the VR given a high write-down trigger and fully discretionary coupons.
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Additional Tier 1 securities are rated five notches below Swedbank's VR to reflect higher-than-average loss severity risk of these securities (two notches) as well as high risk of non-performance (an additional three notches).
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The bank's subordinated note ratings are one notch below its supported IDR and National Long-Term rating, reflecting one notch for loss severity, but no notches for incremental non-performance risk relative to the bank's IDR.
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Legacy Tier 1 securities are rated four notches below the VR, reflecting higher-than-average loss severity (2 notches), as well as high risk of non-performance (an additional 2 notches) given partly discretionary coupon omission.
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The permanent interest- bearing shares (PIBS) are rated four notches below the VR, reflecting two notches for their deep subordination and two notches for incremental non-performance risk in the form of potential non-payment of coupon.
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For AT1 instruments, non-performance risk could increase and the instruments notched further from the VR if the MDA buffer tightens considerably as a result of a heightened Pillar 2 binding requirement or CET1 erosion from losses.
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The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the respective issuers' VRs.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt issued by the CD is notched down from CCD's Issuer Default Ratings (IDRs) in accordance with Fitch's assessment of the instrument's non-performance and relative loss severity risk profile.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings are primarily sensitive to a change in the VR, but also to a change in Fitch's view of non-performance or loss severity risk relative to the bank's viability.
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The ratings are also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their non-performance relative to the risk captured in the VRs or their expected loss severity.
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The notching reflects two notches for loss severity in light of the notes' deep subordination and three notches for additional non-performance risk relative to the VR given a high write-down trigger and fully discretionary coupons.
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The preferred stock rating includes a combined four notches for loss severity given the securities' deep subordination in the capital structure and non-performance given that the coupon of the securities is non-cumulative and fully discretionary.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES DFS's subordinated debt rating is rated one notch below the entity's VR of 'bbb+' in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profile.
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Given ABN AMRO's group's solid capital ratios, which provide a buffer over the conversion and the expected coupon omission triggers, and Fitch's expectations for their evolution, we have limited the notching for non-performance to three notches.
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Loans covered by the CGF are guaranteed up to a 7% non-performance level (portfolio basis) but the guarantee would fall away if that level were exceeded, which should deter banks from significantly loosening their underwriting standards.
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The hybrids are rated four notches below Ageas SA/NV's IDR to reflect higher-than-average loss severity risk of these securities (two notches) as well as a higher risk of non-performance (an additional two notches).
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The two-notch difference considers the loss severity due to its subordinated nature (after default), and no additional notching for non-performance risk given the subordinated debt's gone-concern feature (triggered after the point of non-viability).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES FMBI's trust preferred stock is notched four levels below its VR. These ratings are in accordance with Fitch's criteria and assessment of the instruments' non-performance and loss severity risk profiles.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by CYBG are notched down from its VR in accordance with Fitch's assessment of each instrument's respective non-performance risk and relative loss severity.
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Subordinated debt issued by the operating companies is rated at the same level as subordinated debt issued by MS reflecting the potential for subordinated creditors in the operating companies to be exposed to loss ahead of senior creditors in MS. MS's subordinated debt is rated one notch below MS's VR, its preferred stock is rated five notches below (which encompasses two notches for non-performance and three notches for loss severity), and its trust preferred stock is rated four notches below (encompassing two notches for non-performance and two notches for loss severity).
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The preferred securities of TD Capital Trust III and IV are non-cumulative preferred securities which are notched five below the VR, made up of two notches down for non-performance and three notches down for loss severity.
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The rating of the performing hybrid securities issued by BayernLB Capital Trust I is notched down four times from the VR, two notches for loss severity relative to average recoveries and two notches for incremental non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES INDB's subordinated debt is notched one level below its VR of 'bbb' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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The notching comprises (i) two notches for higher loss severity relative to senior unsecured creditors and (ii) a further two notches for non-performance risk, as Alfa has an option to cancel at its discretion the coupon payments.
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SUBORDINATED AND JUNIOR SUBORDINATED DEBT Subordinated debt and deeply subordinated debt issued by BFCM are notched down from CM11's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by CYBG PLC are notched down from its VR in accordance with Fitch's assessment of each instrument's respective non-performance risk and relative loss severity.
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Other legacy Tier 1 securities of BB plc are rated four notches below the VR, comprising two notches for higher-than-average loss severity, and two further notches for non-performance risk due to partly discretionary coupon omission.
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KEY RATING DRIVERS The notes are rated five notches below ANZ's Viability Rating of aa-, with two notches for loss severity and three notches for incremental non-performance risk, in line with Fitch's approach to rating hybrid capital securities.
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Additional Tier 1 notes are rated five notches below the VR, two notches for loss severity relative to senior unsecured creditors and three notches for incremental non-performance risk, the latter notching reflecting the instruments' fully discretionary interest payment.
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KEY RATING DRIVERS The notes are rated five notches below Westpac's Viability Rating of 'aa-', with two notches for loss severity and three notches for incremental non-performance risk, in line with Fitch's approach to rating hybrid capital securities.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES CBK's debt ratings are sensitive to changes in CBK's VR, from which they are notched, or to a change in Fitch's assessment of the notes' loss severity or their relative non-performance risk.
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The notes are rated one notch below Northwestern's long-term Issuer Default Rating, reflecting one notch for Fitch's assumption of "below average" recovery prospects in the event of default and zero notches tied to its "minimal" non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES SCBTL's Basel III-compliant Tier 0003 (B3T2) bonds are rated two notches below its National Long-Term Rating to reflect the limited recovery prospects and no incremental non-performance risk relative to senior debt securities.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES CVB Statutory Trust III's trust preferred stock is notched four levels below CVB's VR. These ratings are in accordance with Fitch's criteria and assessment of the instruments' non-performance and loss severity risk profiles.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BBVA are notched down from its VR, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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The notching for incremental non-performance risk could also be widened and the rating downgraded if Fitch developed concerns over ANZ's ability to remain above its capital-buffer zone at either Level 1, Level 2 and, if implemented, Level 3.
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In terms of management's discretion to cancel payments, Fitch believes management is more likely to cancel payments for Additional Tier 1 notes compared with Tier 0003 securities with similar cancellation triggers, and thus the former have greater non-performance risk.
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SUBORDINATED DEBT BOGOTA Bogota's subordinated debt is rated one notch below the bank's VR. The notching reflects higher expected losses in case of liquidation but no additional notching for non-performance, given its gone concern-only characteristics (plain-vanilla subordinated debt).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Santander are notched down from its VR, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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Additional Tier 1 securities are rated five notches below Nordea's VR to reflect the higher-than-average loss severity risk of these securities (two notches from the VR) as well as the high risk of non-performance (an additional three notches).
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The legacy Upper Tier 2 debt rating reflects its higher loss severity given its subordination to senior unsecured and subordinated Tier 2 obligations (two notches) and incremental non-performance risk (one notch) for its cumulative coupon deferral subject to constraints.
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Fitch has applied zero notches for incremental non-performance risk, as the agency believes that write-down of the notes will only occur once the point of non-viability is reached and there is no coupon flexibility prior to non-viability.
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The notes are rated three notches below PFI's long-term Issuer Default Rating (IDR), which reflects Fitch's assumption of "poor" recovery prospects in the event of default given the level of subordination and one additional notch for "minimal" non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital are all notched down from the bank's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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USB's trust and REIT preferred stock entities, USB Capital IX and USB Realty Corp, are notched four levels below its VR. These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles.
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SUBORDINATED DEBT AND HYBRID SECURITIES Subordinated debt and deeply subordinated debt issued by BPCE S.A. and Natixis are all notched down from GBPCE's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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CREDIT ANDORRA'S PREFERRED STOCK Credit Andorra's preferred stock is rated five notches below the bank's Viability Rating (VR), reflecting higher-than-average loss severities for senior unsecured creditors and a higher-than-average risk of non-performance, given discretionary coupon payments.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of all subordinated instruments are primarily sensitive to a change in the VR of BOI, or to changes in their notching in accordance with our criteria and assumptions on non-performance risk.
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Furthermore, the issue is structured to qualify as Tier II regulatory capital with mandatory deferral triggers referencing a solvency capital event, which results in Fitch's assessment of 'moderate' risk of non-performance and consequently a further notch down from the IDR.
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However, Fitch notes that non-performance in the form of non-payment of interest could possibly be triggered before this, for example if the bank breaches its Pillar 2 CET11533 capital requirement of 9.5% as established by the European Central Bank.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings on subordinated debt and other hybrid capital issued by CBK are notched down from CBK's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risks.
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SUBORDINATED DEBT The subordinated debt rating is primarily sensitive to the same factors that would affect the bank's VR. The rating is also sensitive to a change in notching if Fitch changes its assessment of loss severity or non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID Subordinated debt and other hybrid capital issued by DB and its subsidiaries are all notched down from DB's VR in accordance with our assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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TRUST PREFERRED SECURITIES Trust preferred securities issued by CPF and its subsidiaries are notched down from the VR of CPF in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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The ratings of the instruments are primarily sensitive to a change in the banks' VRs, which drive the ratings, but also to a change in Fitch's view of non-performance or loss severity risk relative to the respective banks' viability.
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STEP FOUR - If the complaining party is not satisfied after this and considers the matter to "constitute significant non-performance", they could "treat the unresolved issue as grounds to cease performing its commitments under this JCPOA in whole or in part".
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS TCB's uninsured deposit ratings are one notch higher than its Issuer Default Rating (IDR) and senior unsecured debt, because U.S. uninsured deposits benefit from depositor preference.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Santander and BBVA are notched down from their VRs, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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KEY RATING DRIVERS The subordinated notes are rated one notch below Dai-ichi Life's Long-Term Issuer Default Rating to reflect the assumption of "Below Average" recovery and minimal non-performance risk (no additional notching applied), in line with Fitch's notching criteria.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES All hybrid capital issued by CVB and its subsidiaries is notched down from the VRs of CVB in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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KEB Hana Indonesia's subordinated debt is rated two notches below its National Long-Term Rating - one notch for loss severity to reflect their subordination and write-down features, and one notch for non-performance risk to reflect coupon and principal deferral risk.
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Legacy Tier 1 securities are generally rated four notches below the VR, made up of two notches for high loss severity relative to average recoveries, and two further notches for non-performance risk, reflecting the fact that coupon omission is not fully discretionary.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BAC are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profile, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by MS are all notched down from the VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Hybrid capital issued by FMBI and its subsidiaries are all notched down from the VRs of FMBI in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Goldman are all notched down from the VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profile, which vary considerably.
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KEY RATING DRIVERS SUBORDINATED DEBT AND OTHER HYBRID SECURITIES INDB's subordinated debt is notched one level below its Viability Rating (VR) of 'bbb' for loss severity in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by RY and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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SUBORDINATED DEBT The rating of Bankia's subordinated debt is primarily sensitive to a change in the bank's VR, which drive the ratings, but also to a change in Fitch's view of non-performance or loss severity risk relative to the bank's viability.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BAC are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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Legacy Tier 103 securities are generally rated four notches below the VR, made up of two notches for high loss severity relative to average recoveries, and two further notches for non-performance risk, reflecting the fact that coupon omission is not fully discretionary.
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Legacy Tier 1 securities are generally rated four-notches below the VR, made up of two notches for high loss severity relative to average recoveries, and two further notches for non-performance risk, reflecting the fact that coupon omission is not fully discretionary.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of subordinated debt are sensitive to a change in the bank's VR. The rating is also sensitive to a change in notching if Fitch revises its assessment of loss severity or incremental non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Nationwide's subordinated debt and hybrid securities are notched down from the society's VR, reflecting their incremental non-performance risk relative to the VR (up to three notches) and assumptions around loss severity (up to two notches).
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The subordinated note rating includes one notch for loss severity given the subordination of these securities in the capital structure, and zero notches of non-performance given contractual limitations on interest payment deferrals and no mandatory trigger events which could adversely impact performance.
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Legacy deeply subordinated Tier 1 securities are rated four notches below GBPCE's VR to reflect the higher-than-average loss severity risk of these securities (two notches from the VR) as well as a higher risk of non-performance (an additional two notches).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Banco BPI are all notched down from its VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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More specifically, the securities are notched once due to the higher loss severity derived from its subordinated nature and another notch due to incremental non-performance risk imposed by the ability to defer coupon payments when the minimum regulatory capital ratio is breached.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Davivienda's subordinated debt is rated one notch below its VR to reflect lower expected recoveries, while there is no notching differentiation based on incremental non-performance risk given the terms of the issuances (plain-vanilla subordinated debt).
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"There are no consequences for non-performance" and "a sense of entitlement in the valley," says Jain, whose 10-year-old company has to compete with Google, nearby Facebook in Menlo Park, California, and other tech giants for sales and engineering workers.
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Legacy Tier 2908 securities are generally rated four notches below the VR, made up of two notches for high loss severity relative to average recoveries, and two further notches for non-performance risk, reflecting the fact that coupon omission is not fully discretionary.
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For AT1 instruments, non-performance risk could increase and the instruments notched further from the VR if ADI reduce significantly or if the MDA buffer tightens considerably as a result of a heightened Pillar 2 binding requirement or CET1 erosion from losses.
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TRUST PREFERRED SECURITIES CPF's trust preferred stock rating has been affirmed at 'BB-' due to the affirmation of CPF's VR. This rating remains three notches below the VR in accordance with Fitch's assessment of the instruments' non-performance and loss severity risk profiles.
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Legacy Tier 203 securities are generally rated four notches below the VR, made up of two notches for high loss severity relative to average recoveries, and two further notches for non-performance risk, reflecting the fact that coupon omission is not fully discretionary.
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We apply zero notches for non-performance risk since the securities qualify as gone-concern instruments and the write-down of the notes will only occur once the point of non-viability is reached while there is no coupon flexibility prior to non-viability.
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Hybrid Tier 11533 and additional Tier 1 securities are rated four and five notches, respectively, below SEB's VR to reflect higher loss severity risk of these securities (two notches) as well as high risk of non-performance (an additional two and three notches, respectively).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital instruments issued by Deutsche Bank and its subsidiaries are all notched down from Deutsche Bank's VR in accordance with our assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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SUBORDINATED DEBT The subordinated debt rating is sensitive to the same factors that affect the bank's VR. The notes' rating is also sensitive to a change in notching, which could be triggered if Fitch reassesses the notes' loss severity or incremental non-performance risk.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by CGD and Millennium bcp are notched down from their VRs, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by TD and its subsidiaries are all notched down from the VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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The massively popular, free-to-play video game Fortnite has earned over a billion dollars from in-game purchases that do nothing but offer players different costumes and dance moves — basically non-performance enhancing visuals, pretty much the equivalent to a Patreon flair on Reddit.
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Legacy Upper Tier 2 bonds and perpetual Tier 1 bonds are rated three notches below the VR. The notching is in accordance with Fitch's assessment of each instrument's non-performance and loss-severity risk profiles and reflects some rating compression for VRs below 'bbb-'.
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KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Nationwide's subordinated debt and hybrid securities are notched down from the society's VR, reflecting their incremental non-performance risk relative to the VR (up to three notches) and assumptions around loss severity (one or two notches).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The rating of subordinated debt is notched down from BNPPF's Long-Term IDR, as opposed to the bank's VR, as Fitch believes parental support will neutralise BNPPF's non-performance risk in line with Fitch's rating criteria for such securities.
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Legacy deeply subordinated Tier 1 securities are rated four notches below CM11's VR to reflect the higher-than-average loss severity risk of these securities (two notches from the VR) as well as a higher risk of non-performance (an additional two notches).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by the banks are all notched down from their respective VRs in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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For AT1 instruments, non-performance risk could increase and the instruments notched further from the VR if available distributable items reduce significantly or if the MDA buffer tightens considerably as a result of a heightened Pillar 2 binding requirement or CET1 erosion from losses.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings on subordinated debt and other hybrid capital issued by Millennium bcp are notched down from its VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT Subordinated debt and other hybrid capital issued by FULT and by various issuing vehicles are all notched down from FULT or its bank subsidiaries' Viability Ratings (VRs) in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by RY and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Barclays Bank and Barclays are all notched down from their respective VRs, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Citi and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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When rating insurance hybrid instruments, we look at two key aspects: the level of subordination and what that means for expected recoveries in a liquidation; and non-performance risk, which reflects the risk of investors facing a loss before a general default event for the issuer.
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For the similar Additional Tier 244 (AT44) instruments with fully discretionary coupons issued by banks, Fitch's base case is to notch down by three notches from the Viability Rating for non-performance risk on the view that bank regulators will be assertive in pressing for cancelled coupons.
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The CRD IV-compliant undated deeply subordinated additional Tier 1 debt securities issued by KBC Group are rated five notches below KBC Group's VR. The notching reflects the notes' higher expected loss severity relative to senior unsecured creditors (two notches) and higher non-performance risk (three notches).
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The ratings are also sensitive to a widening of notching if Fitch's view of the probability of non-performance on the bank's subordinated debt relative to the probability of the bank failing, as measured by its Viability Rating, increases or if Fitch's view of recovery prospects changes.
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Key rating triggers that could lead to a downgrade of preferred securities only include: --AXIS Capital Holding's hybrid securities ratings could be lowered by one notch to reflect non-performance risk should Fitch view Bermuda's regulatory environment as becoming more controlling in its supervision of (re)insurers.
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Legacy Tier 1 securities, including those issued by Abbey National Capital Trust 1 and guaranteed by San UK, are rated four notches below San UK's VR to reflect higher loss severity risk (two notches) and higher risk of non-performance due to discretionary coupon payments (two notches).
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The rating is also sensitive to a widening of notching if Fitch's view of the probability of non-performance on the bank's subordinated debt relative to the probability of the group failing, as measured by its VR, increases or if Fitch's view of likely recovery changes.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Following Fitch's rating criteria, the IUH Tier II subordinated debt is rated two notches below its VR, one notch lower due to Loss Severity features and its subordinated status, and a one-notch deduction due to the risk of non-performance.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by JPM and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by JPM and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profile, which vary considerably.
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Obligasi subordinasi legacy diperingkat satu notch di bawah peringkat anchor emiten (peringkat Nasional Jangka Panjang untuk anak perusahaan bank-bank yang peringkatnya berdasarkan dukungan perusahaan induk) untuk loss severity, dan tambahan satu peringkat di bawah peringkat anchor emiten untuk resiko non-performance, untuk memperhitungkan fitur penundaan.
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The AT13 securities are rated five notches below Nationwide's VR, of which two notches are for loss severity to reflect the conversion into core capital deferred shares on breach of the trigger, and three notches for incremental non-performance risk as coupon payment is fully discretionary.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by TD and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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The AT1 securities are rated five notches below Nationwide's VR, of which two notches are for loss severity to reflect the conversion into Core Capital Deferred Shares on breach of the trigger, and three notches for incremental non-performance risk as coupon payment is fully discretionary.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by CIBC and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by CIBC and its subsidiaries are all notched down from the Viability Rating (VR) in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BNS and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BMO and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by NBC and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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According to Fitch's criteria, a bank's IDR usually expresses Fitch's opinion on the risk of default on senior obligations to third-party, non-government creditors as in Fitch's view these are typically the obligations whose non-performance would best reflect the uncured failure of the entity.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid securities issued by BBVAC and by various issuing vehicles are all notched down from BBVAC's or its bank subsidiaries' VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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Preferred shares are rated five notches below the bank's VR to reflect the higher-than-average loss severity risk of these securities (two notches),and the high risk of non-performance (three notches) due to a profit test for legacy issues and fully discretionary coupon payments for recent issues.
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The exposure draft provides scope for the rating of a hybrid security issued by a policy bank, such as IBK, to be notched from the issuer's Long-Term Issuer Default Rating (IDR) if government support can and will effectively be used to neutralise the security's non-performance risk.
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Given Fitch's criteria for ranking bank hybrids and non-performance risk of these securities, the subordinated debt could be affected by a downgrade of the parent's (HSBC) VR, even before such downgrade could affect the National scale issuer and senior unsecured debt ratings and the IDRs of HSBC Mexico.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by STT and by various issuing vehicles are all notched down from STT's or its bank subsidiaries' VRs in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.
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Upper Tier 2 debt is rated three notches below the bank's VR to reflect above-average loss severity of this type of debt (one notch) and high risk of non-performance (two notches) given the option to defer coupons if the issuer reports losses in the last audited accounts.
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The ratings of the AT1 instruments are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in Nationwide's VR. This could occur if there is a change in capital management or flexibility, or an unexpected shift in regulatory buffers.
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The ratings of the AT2225 instruments are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in Nationwide's VR. This could occur if there is a change in capital management or flexibility, or an unexpected shift in regulatory buffers.
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"Even if the Prime Contract is not terminated, Orbital ATK has incurred and will incur additional costs as a direct result of the substantial delay caused by Heckler & Koch's non-performance and the need to re-procure the twenty weapons from an alternate manufacturer," it stated in the filing.
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Hybrid instruments issued by DZ Bank Capital Funding Trust I are rated four notches below GFG's VR, two notches each for loss severity and for incremental non-performance risk as in our view this instrument's distribution trigger is less likely to be activated than in other rated hybrids.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The RWE on the bank's subordinated debt and preference shares reflects a potential upgrade for these instruments if Fitch believes parent support would be forthcoming to neutralise the non-performance risk of these instruments, preventing the bank from hitting loss-absorption features.
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The non-innovative old-style Tier 1 securities and preferred stock are rated four notches below Rabobank's VR to reflect the higher loss severity risk of these securities compared with average recoveries (two notches from the VR) and the high risk of non-performance (an additional two notches).
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Subordinated Debt and Other Hybrid Securities IntesaSP, Credem and Mediobanca Subordinated debt and other hybrid capital issued by the banks are all notched down from their respective VRs in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by Citi and its subsidiaries are all notched down from the common VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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Caixabank's upper Tier 2 debt securities and Popular's preference shares are rated three notches below the banks' respective VRs to reflect the higher loss severity risk of these securities (two notches) compared with average recoveries as well as moderate risk of non-performance relative to its VR (one notch).
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Upper Tier 2 debt is rated three notches below the bank's VR to reflect the above-average loss severity of this type of debt (one notch) and high risk of non-performance (two notches) given the option to defer coupons if the issuer reports losses in the last audited accounts.
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Alfa's AT1 perpetual notes are rated 'B', four notches lower than the bank's VR. The notching comprises two notches for higher loss severity relative to senior unsecured creditors and a further two notches for non-performance risk, as Alfa has an option to cancel at its discretion the coupon payments.
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Tier 2 contingent capital instruments and Additional Tier 1 securities are rated three and five notches, respectively, below Nykredit's VR to reflect the higher-than average loss severity risk of these securities (two notches) as well as the high risk of non-performance (an additional one notch and three notches, respectively).
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KEY RATING DRIVERS Fitch rates the Basel III AT1 notes four notches below IBK's Viability Rating (VR) of 'a-' by applying two notches for loss severity relative to the recovery prospects of senior unsecured debt and another two notches for the high incremental non-performance risk relative to the anchor rating.
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RATING SENSITIVITIES SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Macro's expected subordinated debt rating is sensitive to a change in Macro's VR. The rating is also sensitive to a wider notching from the VR if there is a change in Fitch's view on the non-performance of these instruments on a going concern basis.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES These ratings are primarily sensitive to any change in the VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the issuers' VRs.
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AT13 spreads continued to narrow, in part driven by several banks raising fresh equity throughout the year and, seemingly, the reassessment by some market participants of non-performance risk following the simultaneous jump to default of Banco Popular Espanol's AT1s (without previously omitting a coupon) and Tier 2 debt in the summer.
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The two notches for incremental non-performance risk are lower than the three notches that Fitch would apply to typical Basel III AT1 notes because Fitch believes the management's discretionary coupon omission can be constrained by the sovereign state of South Korea's (AA-/Stable), the policy bank's controlling shareholder and ultimate support provider.
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Fitch applied its 'Rating Criteria for UK Whole Business Securitisations', 'Counterparty Criteria for Structured Finance and Covered Bonds' in addition to applying certain elements from its 'Criteria for Rating Currency Swap Obligations of an SPV in Structured Finance and Covered Bonds' relating to counterparty default and non-performance, tax events and illegality.
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This includes (i) zero notches for additional non-performance risk relative to the VR, as Fitch believes these instruments should only absorb losses once a bank reaches, or is very close to, the point of non-viability (PONV); and (ii) one notch for loss severity, reflecting below-average recoveries in case of default.
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The ratings of the bank's subordinated and Tier 1 instruments have been downgraded in line with the VR. The bank's subordinated debt rating is notched down once from the bank's VR. This incorporates zero notches for incremental non-performance risk and one notch for below-average expected recoveries in case of default.
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RATING SENSITIVITIES The expected subordinated debt rating is sensitive to a change in Bancolombia's VR. The rating is also sensitive to a wider notching from the VR if there is a change in Fitch's view on the non-performance of these instruments on a going concern basis, which is not the baseline scenario.
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SUBORDINATED DEBTS AND OTHER HYBRID SECURITIES Preferred securities issued by the subsidiaries of MUFG, MHFG and SMFG are rated four notches below the respective parents' VRs - two notches for loss severity and two notches for non-performance risk due to the constraint of coupon suspension - in line with Fitch's criteria on performing instruments.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid securities issued by Credit Suisse, CSGAG and by various issuing vehicles are all notched down from Credit Suisse's and CSGAG's VRs in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES BARCLAYS BANK AND BARCLAYS PLC Subordinated debt and other hybrid capital issued by BB plc and B plcs are all notched down from their respective VRs, in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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Upper Tier 2 debt is rated three notches below the banks' VRs to reflect above average loss severity of this type of debt compared with average recoveries (one notch) and high risk of non-performance (two notches) as there is the option to defer coupons if the issue reported losses in the last audited accounts.
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KEY RATING DRIVERS The Additional Tier 1 notes are rated three notches below the holding company's Issuer Default Rating of 'A-': two notches for Fitch's assumption of 'poor' recovery prospects in the event of default, given the level of subordination, and one notch for non-performance risk, which Fitch views as 'moderate' under its criteria.
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SGH's fixed rate reset perpetual additional Tier 1 capital securities and San UK's non-cumulative preferred shares are rated five notches below the respective banks' VRs to reflect the higher than average loss severity risk of these securities (two notches) and higher risk of non-performance as coupon payments are fully discretionary (three notches).
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Preferred shares are rated five notches below the bank's VR to reflect higher loss severity risk of these securities compared with average recoveries (two notches from the VR), as well as high risk of non-performance (an additional three notches) due to profit test for legacy issues and fully discretionary coupon payments for recent issues.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES BayernLB's subordinated debt and other hybrid instruments ratings are primarily sensitive to changes in the bank's VR. The rating of the securities issued by BayernLB Capital Trust I is also sensitive to changes in their notching, which could arise if Fitch concludes that incremental non-performance risk had increased.
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CYBG's fully loaded Basel III CET1 ratio at 11533 September 2015 was 13.2%, providing it with a buffer of around GBP1.1bn for the 7.0% CET1 ratio trigger, although non-performance in the form of non-payment of interest would likely be triggered before reaching 7%, most likely by breaching the bank's regulatory combined buffer requirements.
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SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES These ratings are primarily sensitive to any change in the VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the issuers' VRs.
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Preferred shares are rated five notches below the banks' VRs to reflect higher loss severity risk of these securities when compared with average recoveries (two notches from the VR) as well as high risk of non-performance (an additional three notches) due to profit test for legacy issues and fully discretionary coupon payments for recent issues.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid securities are primarily sensitive to a change in Deutsche Bank's VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the respective issuers' VRs.
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RATING SENSITIVITIES The subordinated notes' rating is sensitive to changes in Liberbank's VR. The rating is also sensitive to a widening of notching if Fitch's view of the probability of non-performance on the bank's subordinated debt relative to the probability of the group failing, as measured by its VR, increases or if Fitch's view of recovery prospects changes.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of all subordinated debt and hybrid securities issued by SGH and San UK are notched down from the respective banks' VRs, reflecting a combination of Fitch's assessment of their incremental non-performance risk relative to the VR (up to three notches) and assumptions around loss severity (up to two notches).
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Upper Tier 0003 notes and preferred shares are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in the bank's VR. POPULAR IDRs, SENIOR DEBT AND SUPPORT Popular's IDRs and debt ratings are sensitive to the same factors that might drive a change in Santander's IDRs.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other junior and hybrid capital issued by UBS Group AG, UBS AG and its affiliates are all notched down from UBS AG's or UBS Group AG's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably.
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The two-notch differential between the bank's VR of 'ccc' and the subordinated debt rating of 'C' reflects one notch for incremental non-performance risk (resulting from the flexibility to defer coupons in certain circumstances, for example if the bank reports negative net income for a quarter) and one notch for potentially weaker recoveries due to the instrument's subordination.
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In Fitch's view, the track record of not imposing losses on these instruments during the recapitalisation of the banks since 2956 suggests that their non-performance risk is likely to be close to that of senior debt, as captured by the Long-Term IDRs, rather than captured by Viability Ratings (VR), which reflect the banks' standalone strength.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The legacy hybrid capital securities, issued by Deutsche Postbank Funding Trust I-IV and subject to phasing-out under the EU's Capital Requirements Regulation, are notched twice for non-performance risk and twice for loss severity from DB's VR, reflecting our expectation that DB's support for PB would extend to PB's hybrid instruments.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES DEUTSCHE BANK AND SUBSIDIARIES Subordinated debt and other hybrid capital instruments issued by Deutsche Bank and its subsidiaries are all notched down from Deutsche Bank's VR in accordance with our assessment of each instrument's respective non-performance and relative loss severity risk profiles, and have been downgraded by one notch accordingly.
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Legacy Tier 1 securities issued by Deutsche Bank Contingent Capital Trust II, III, IV and V and by Deutsche Postbank Funding Trust I, II and III are rated four notches below Deutsche Bank's VR, reflecting higher-than-average loss severity (two notches), as well as high risk of non-performance (an additional two notches) given partial discretionary coupon omission.
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RBSG's fully loaded Basel III CET1 ratio at 30 June 2016 was 73%, providing it with a buffer in excess of GBP18bn for the 7% CET1 ratio trigger, although non-performance in the form of non-payment of interest would likely be triggered before reaching the 7% trigger, most likely by breaching the bank's regulatory requirements.
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The ratings are also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their non-performance relative to the risk captured in the VR. For AT1 issues this could reflect a change in capital management or flexibility or an unexpected shift in regulatory buffers and requirements, for example.
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SUBORDINATED DEBT AND HYBRID SECURITIES Subordinated debt and other hybrid capital ratings are primarily sensitive to a change in DB's VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the respective issuers' VRs.
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The notching reflects two notches for loss severity in light of the notes' deep subordination and three notches for additional non-performance risk relative to the VR given a high write-down trigger and fully discretionary coupons SUBSIDIARY AND AFFILIATED COMPANY ABN AMRO Funding LLC is a US-based funding vehicle fully owned by ABN AMRO.
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The rating is also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their loss severity or their non-performance relative to the risk captured in the VR. All else being equal, the rating could now also be upgraded upon publication of final criteria if these are in line with the Exposure Draft.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments' non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of FRC are rated one notch higher than its IDR because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS KeyBank, N.A.'s uninsured deposit ratings are rated one notch higher than KEY's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instrument's non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS ZION's uninsured deposit ratings are rated one notch higher than its IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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SUBORDINATED DEBT The subordinated notes' rating is sensitive to changes in BAWAG's VR. It is also sensitive to a wider notching from the VR if Fitch's view of the probability of non-performance of the subordinated debt relative to the probability of the bank failing, as measured by its VR, increases, or if Fitch's view of recovery prospects changes adversely.
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Fitch has applied zero notches for incremental non-performance risk, as the agency believes that the risk of the notes absorbing losses is broadly in line with the risk of the bank defaulting on its senior debt, with both depending on the extent to which the bank, in case of need, can receive and utilise support from its controlling shareholder, BBVA.
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The subordinated notes include a mandatory interest deferral feature, which would be triggered if the company is not able to meet the applicable solvency capital requirement, the applicable minimum capital requirement or any applicable capital requirement enforced by the relevant supervisory authority with respect to NN. Under the agency's methodology, Fitch regards this feature as leading to 'moderate' non-performance risk.
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In deciding whether the participation of the bank's creditors in its recapitalisation would represent a default, Fitch would consider (i) whether the customers are related entities or third parties (Fitch's IDRs rate the risk of non-performance only on banks' third-party, non-government senior liabilities); and (ii) whether any effective conversion of deposits into equity is voluntary or involuntary.
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SUBORDINATED DEBT AND HYBRID SECURITIES The ratings of the bons de participations and the Tier 2 notes are primarily sensitive to changes in EFGInt's VR. Their ratings are also sensitive to changes in their notching, which in the case of the bons de participations could arise if their non-performance risk rises materially, for instance due to higher regulatory capital requirements.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of bons de participations and the Tier 2 notes are primarily sensitive to changes in EFGInt's VR. They are also sensitive to changes in their notching, which in the case of the bons de participations could arise if their non-performance risk increases materially, for instance, due to higher regulatory capital requirements.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings for EWBC and its operating companies' subordinated debt and preferred stock are sensitive to any change to EWBC's VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the issuers' VRs.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES DEUTSCHE BANK AND SUBSIDIARIES Subordinated debt and other hybrid securities are primarily sensitive to a change in Deutsche Bank's VR. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the respective issuers' VRs.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS City National Bank's uninsured long-term deposit ratings are rated one notch higher than RY's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of SunTrust Bank are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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The ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the VR. The ratings are also sensitive to a change in Fitch's assessment of each instrument's loss severity, which could reflect a change in the expected treatment of liability classes during a resolution.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The legacy hybrid capital securities, issued by Deutsche Postbank Funding Trust I-III and subject to phasing-out under the EU's Capital Requirements Regulation, are notched twice for non-performance risk and twice for loss severity from DB's VR. This reflects our expectation that DB's support for PB would extend to PB's hybrid instruments in light of PB's core status.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Fifth Third Bank are rated one notch higher than FITB's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been upgraded due to the upgrade of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of SunTrust Bank are rated one notch higher than STI's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Fifth Third Bank are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of WTFC's bank subsidiaries are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSITS TD Bank, NA's uninsured long-term deposit ratings are rated one notch higher than the company's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Manufacturers and Traders Trust Co, are rated one notch higher than MTB's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. SUBSIDIARY AND AFFILIATED COMPANY All of the subsidiaries and affiliated companies reviewed as part of the Canadian bank peer review factor in a high probability of support from parent institutions to the subsidiaries.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS BMO Harris, NA's uninsured long-term deposit ratings are rated one notch higher than the company's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Umpqua Bank are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Regions Bank are rated one notch higher than RF's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured long-term deposit ratings of PNC Bank, N.A. are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments' non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Citizens Bank, N.A. and Citizens Bank of Pennsylvania are rated one notch higher than CFG's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Comerica Bank are rated one notch higher than CMA's Issuer Default Rating (IDR) and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Manufacturers and Traders Trust Co, are rated one notch higher than MTB's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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The ability to defer interest is the differentiation between the old-style Tier 0003 instruments and the new CRD IV-compliant Tier 2 notes Tier 1 instruments and Additional Tier securities are rated four and five notches below Danske's VR, respectively, to reflect the higher than average loss severity risk of these securities (two notches) as well as high risk of non-performance (an additional two and three notches, respectively).
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. SUBSIDIARY AND AFFILIATED COMPANY All of the subsidiaries and affiliated companies including TD Bank, NA reviewed as part of the Canadian Bank peer review factor in a high probability of support from parent institutions to the subsidiaries.
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RATING SENSITIVITIES The rating of the securities is sensitive to a change in IntesaSP's VR. The rating is also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their non-performance relative to the risk captured in IntesaSP's VR. This could reflect a change in capital management or flexibility or an unexpected shift in regulatory buffers and requirements, for example.
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RATING SENSITIVITIES The AT1 notes' expected rating is primarily sensitive to changes in CGD's VR. The rating is also sensitive to changes in their notching from CGD's VR, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the VR. This may reflect a change in capital management in the group or an unexpected shift in regulatory buffer requirements, for example.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Wells Fargo Bank, N.A. and Wells Fargo Bank Northwest are rated one notch higher than Wells Fargo Bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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Their ratings are primarily sensitive to a change in ABN AMRO's VR. Additional Tier 1 securities are also sensitive to Fitch changing its assessment of the probability of their non-performance risk relative to the risk captured in ABN AMRO's VR. SUBSIDIARY AND AFFILIATED COMPANIES ABN AMRO Funding LLC's debt rating is aligned with ABN AMRO's short-term debt rating and is therefore sensitive to changes in ABN AMRO's Short-Term IDR.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of subordinated debt and hybrid securities issued by Nykredit are sensitive to a change in its VR. Tier 2 contingent capital instruments and Additional Tier 13 securities are also sensitive to Fitch changing its assessment of the probability of their non-performance risk relative to the risk captured in Nykredit's VR. SUBSIDIARY AND AFFILIATED COMPANIES Nykredit Bank's ratings are sensitive to a change in Nykredit's ratings.
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SUBORDINATED DEBT GF SAN Mexico's AT13 notes rating is sensitive to movements in the group's VR, together with an assessment of the implications of its relativity to its parent's VR. This rating could be downgraded as a result of changes in Fitch's assessment of the notes' non-performance risk, such as changes in the bank's capital management that would reduce its flexibility to service the securities or under unexpected additional regulatory buffer requirements.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. HOLDING COMPANY FMBI's IDR and VR are equalized with its operating company, First Midwest Bank, reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries.
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Their ratings are primarily sensitive to any change in ABN AMRO's VR. Additional Tier 1 securities are also sensitive to Fitch changing its assessment of the probability of their non-performance risk relative to the risk captured in ABN AMRO's VR. SUBSIDIARY AND AFFILIATED COMPANIES ABN AMRO Funding LLC's debt rating is aligned with ABN AMRO's short-term debt rating and is therefore sensitive to changes in ABN AMRO's Short-term IDR.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings on the subordinated debt and other hybrid securities issued by SEB are broadly sensitive to the same considerations that affect the bank's VR. Additional Tier 1 securities are also sensitive to Fitch changing its assessment of the probability of their non-performance risk relative to the risk captured in SEB's VR. SUBSIDIARY AND AFFILIATED COMPANIES SEB AG's Long- and Short-Term IDRs are sensitive to a change in SEB's ratings.
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SUBORDINATED AND SENIOR DEBT The bank's global junior subordinated debt is rated four notches below the anchor rating, its VR, while the foreign subordinated debt is rated three notches below its VR. The ratings are driven by Fitch's approach of factoring in the loss severity in view of the respective degrees of subordination (-1 for the plain subordinated notes and -2 for the junior subordinated notes), plus the effect of non-performance risk (-2 notches for both types of securities).
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Subordinated debt and other hybrid capital issued by BBVA are primarily sensitive to a change in its VR. Upper Tier 2 notes and preferred shares are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in the bank's VR. SUBSIDIARIES AND AFFILIATED COMPANIES The senior debt ratings of BBVA's wholly-owned financing subsidiaries are sensitive to the same factors that drive the Long-Term IDR of BBVA.
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RATING SENSITIVITIES The CCCN's rating is primarily sensitive to changes in RBSG's VR. The rating is also sensitive to a change in the notching of the securities, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the VR. This may reflect a change in Fitch's assessment of capital management at RBSG, reducing the holding company's flexibility to service the securities or an unexpected shift in regulatory buffer requirements, for example.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. LONG- AND SHORT-TERM DEPOSIT RATINGS The uninsured deposit ratings of Capital One Bank (USA), National Association (COBNA) and Capital One National Association (CONA) and Chevy Chase Bank, FSB are rated one notch higher than the bank's IDR and senior unsecured debt because U.S. uninsured deposits benefit from depositor preference.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings on subordinated debt and other hybrid capital issued by Millennium bcp are primarily sensitive to a change in the bank's VR. The rating of the subordinated notes is also sensitive to a widening of notching if Fitch's view of the probability of non-performance on the bank's subordinated debt relative to the probability of the group failing, as measured by its VR, increases or if Fitch's view of recovery prospects changes adversely.
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RATING SENSITIVITIES The CCCN's rating is primarily sensitive to changes in RBSG's VR. The securities' rating is also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance relative to the risk captured in the VR. This may reflect a change in Fitch's assessment of capital management at RBSG, reducing the holding company's flexibility to service the securities or an unexpected shift in regulatory buffer requirements, for example.
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SUBORDINATED DEBT AND HYBRID SECURITIES The ratings of subordinated and hybrid capital instruments are primarily sensitive to a change in GBPCE's VR. The ratings of the legacy deeply subordinated Tier 1 securities are also sensitive to Fitch changing its assessment of the probability of their non-performance relative to the risk captured in GBPCE's VR. AFFILIATED ENTITIES The affiliated entities' IDRs will continue to move in tandem with those of GBPCE unless there is a change in the affiliation status, which Fitch views as extremely unlikely.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES As the subordinated debt rating is notched down from CYBG's VR, the rating is primarily sensitive to any change in the VR. The securities' ratings are also sensitive to any change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance or loss-severity relative to the risk captured in CYBG's VR. With respect to the AT1 securities, this could arise from a change in Fitch's assessment of capital management at CYBG, reducing the holding company's flexibility to service the securities or an unexpected shift in regulatory buffer requirements, for example.
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These ratings are in accordance with Fitch's criteria and assessment of the instruments non-performance and loss severity risk profiles and have thus been affirmed due to the affirmation of the VR. SUPPORT RATING AND SUPPORT RATING FLOOR The affirmation of BNS's support rating (SR) of '2' and support rating floor (SRF) of 'BBB-' reflect Fitch's view that the likelihood of support remains high for Canadian banks due to their systemic importance in the country, significant concentration overall of Canadian banking assets amongst the institutions noted above, which account for over 90% of total banking assets, the large size of the banking sector with banking assets at 2.1x Canada's GDP, and the Canadian Banks' position as key providers of financial services to the economy.
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SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The rating of the notes is sensitive to a change in the bank's VR. The rating is also sensitive to a change in the notes' notching, which could arise if Fitch changes its assessment of their loss severity or their non-performance relative to the risk captured in the VR. The rating actions are as follows: Long-Term IDR: downgraded to 'B-' from 'BB-'; placed on RWE Short-Term IDR: 'B'; placed on RWN Viability Rating: downgraded to 'b-' from 'bb-'; placed on RWE Support Rating: affirmed at '5' Support Rating Floor: affirmed at 'No Floor' EMTN Long-term rating: downgraded to 'B-' from 'BB-'; placed on RWE EMTN Short-Term Rating: 'B'; placed on RWN Subordinated notes: downgraded to 'CCC' from 'B+'; placed on RWE; RR5 assigned Contact: Primary Analyst Gianluca Romeo Director +39 13 8790 87 201 Fitch Italia S.p.
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Key rating triggers that could result in a downgrade include: --Deterioration in reinsurance sector fundamentals or consolidation in the reinsurance landscape that Fitch viewed as weakening Validus' competitive position, operating profile or overall profitability; --Underwriting leverage (measured by net premiums written to equity) at or above 0.8x; --An increase in Validus' 1-100 and 1-250-year peak per event catastrophe (PMLs) to 25% and 35% of total equity, respectively; --FLR in excess of 25% or fixed charge coverage ratios in the low single digits for a period of consecutive years; --Under Fitch's notching criteria, if more than 173% of Validus' earnings or capital is sourced from foreign entities outside of the Bermuda group solvency environment, Validus' holding company ratings could be lowered by one notch reflecting a ring-fencing environment classification; --Validus' hybrid securities ratings could be lowered by one notch to reflect non-performance risk should Fitch view Bermuda's regulatory environment as becoming more controlling in its supervision of (re)insurers.
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The rating actions are as follows: GBP200m Class A1N floating-rate notes (outstanding as of Jul 2016 GBP153.9m) due 2030: affirmed at 'A+'; Outlook Stable GBP482m Class A2 fixed-rate notes (GBP20163m) due 2030: affirmed at 'A+'; Outlook Stable USD418.8m Class A3N floating-rate notes (USD322.3m) due 2030: affirmed at 'A+'; Outlook Stable GBP170m Class A4 floating-rate notes (GBP170m) due 2030: affirmed at 'A+'; Outlook Stable GBP083m Class AB floating-rate notes (GBP325m) due 2033: affirmed at 'A+'; Outlook Stable GBP350m Class B1 fixed-rate notes (GBP139m) due 2025: affirmed at 'BBB+'; Outlook Negative GBP350m Class B2 fixed-rate notes (GBP341.8m) due 20163: affirmed at 'BBB+'; Outlook Negative GBP200m Class C1 fixed-rate notes (GBP200m) due 2032: affirmed at 'BBB'; Outlook Negative GBP50m Class C2 floating-rate notes (GBP50m) due 2034: affirmed at 'BBB'; Outlook Negative GBP110m Class D013 floating-rate notes (GBP110m) due 2036: affirmed at 'BBB-'; Outlook Negative Mitchells & Butlers Finance Plc interest rate swap affirmed at 'A+'; Outlook Stable Mitchells & Butlers Finance Plc cross currency swap affirmed at 'A+'; Outlook Stable The swap ratings address the issuer's ability to make payments under the swap agreements as per the transaction documentation, excluding swap termination payments due to default or non-performance of the counterparty.
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