Iceland-Based Islandsbanki#s Proposed Tier-2 Subordinated Notes Rated #BBB-#

Stocks and Financial Services Press Releases Friday November 17, 2017 15:46
STOCKHOLM--17 Nov--S&P Global Ratings

STOCKHOLM (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today said that it has assigned its 'BBB-' long-term issue rating to the proposed Swedish krona-denominated tier-2 nondeferrable, subordinated notes of Islandsbanki hf (BBB+/Stable/A-2). The proposed notes will be drawn from the bank's $2.0 billion global medium-term notes program. The rating is subject to our review of the final issuance documentation.

The subordinated notes are the first market issuance of capital instruments by an Icelandic bank since the 2008 banking sector collapse. We expect the instruments will be tier-2 regulatory capital for Islandsbanki, which continues to optimize its capital base by reducing its high share of equity via extraordinary dividend payouts.

Our 'BBB-' issue rating is two notches below our assessment of the bank's 'bbb+' stand-alone credit profile. As per the notes' terms and conditions, we consider the instruments to be subordinated to senior creditors' claims, and note that the instruments are available to absorb losses at the point of nonviability of the bank via statutory loss absorption. Given the lack of going-concern loss absorption, we do not expect to include the instruments in our calculation of Islandsbanki's total adjusted capital.

While Iceland has yet to implement the Bank Recovery and Resolution Directive (BRRD), we understand that Iceland aims to implement BRRD during 2018, making clear that these instruments would be written down at the point of nonviability prior to their first call date.

Latest Press Release

Poland-Based Debt Purchaser GetBack S.A. Outlook Revised To #B/B# Ratings Affirmed

MOSCOW (S&P Global Ratings) Feb. 19, 2018--S&P Global Ratings said today that it has revised its outlook on Poland-based distressed-debt purchaser GetBack S.A. to positive from stable. At the same time, we affirmed our 'B' long-term and 'B'...

Trade/Project Financier, Bachmann Welser To Launch USD 2 billion Project Finance Fund

Global Trade/Project Financier, Bachmann & Welser will launch a USD 2 billion Project finance fund in March 2018 with funds that will be backed by several private and institutional investors. (Logo:...

Photo Release: SCB and Thaioil toast first long-term financing for project investment and development in Vietnam

To constantly help clients expand to overseas markets, Siam Commercial Bank (SCB) is supporting Top Solvent (Vietnam) Liability Co., Ltd., a company under Thaioil Group, with a long-term loan of 310,791 million VND for project investment and development...

Photo Release: Maybank Kim Eng signs MOU with Stamford International University

Mr. Sukit Udomsirikul, Managing Director and Head of Research Department, Maybank Kim Eng Securities (Thailand) Public Company Limited and Dr. Andrew Scown, President of Stamford International University signed a Memorandum of Understanding (MOU) which...

KTC PROUD members rejoice!! Register today for 1 billing cycle interest and usage fee exemption.

"KTC" or Krungthai Card Public Company Limited, organizes the "2-get-1" campaign, providing value-oriented Thais with special privileges for their necessities, and to lighten the familial load in various forms, in order to prepare for every financial...

Related Topics