Moody’s rates Investec hybrids at Ba2(hyb)

Moody’s Investors Service said it assigned a provisional Ba2 (hyb) rating to the additional tier 1 capital securities of Investec plc.

The perpetual, non-cumulative AT1 securities will be direct and unsecured obligations of Investec plc and rank junior to all other obligations, the agency said, and rank senior to ordinary shares.

Coupons may be cancelled on a non-cumulative basis at the issuer’s option and on a mandatory basis subject to the availability of distributable items and regulatory discretion, Moody’s said.

The provisional rating assigned to the Investec securities is based on the likelihood of Investec plc’s capital ratio reaching the conversion trigger, the probability of a bank-wide failure and its loss severity, the agency said.

The group’s intrinsic financial strength corresponds to the Baa2 baseline credit assessment assigned to its main operating entity, Investec Bank plc, Moody’s said.

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