Fitch rates Emirates notes A

Fitch Ratings said it assigned a final rating of A to Emirates NBD's $750 million reset callable subordinated notes due March 28, 2023 issued under the bank's $7.5 billion euro medium-term note program.

The subordinated notes have no coupon flexibility and no contractual point of non-viability loss absorption features, Fitch said.

The notes are rated one notch below the bank's long-term issuer default rating of A+ rather than the typical notching from the viability rating, according to the agency's criteria, the agency said.

The notching down from the long-term issuer default rating reflects a view that sovereign support is likely to extend to subordinated debt instruments, as well as senior obligations, if needed, Fitch said.

The agency said it notched the subordinated notes down once from the long-term issuer default rating to reflect above average loss severity relative to senior debt, but there are no additional notches for incremental non-performance risk in the absence of any going concern loss absorption features.

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