Moody’s rates Itau Unibanco debt B2 (hyb)

Moody's Investors Service said it assigned a B2 (hyb) rating to the proposed perpetual non-cumulative non-convertible non-viability additional tier 1 capital securities to be issued by Itau Unibanco Holding SA (Cayman Islands) under the company's provisional B2 medium-term note program.

The capital securities are Basel III-compliant, and the terms and conditions have been defined with the purpose of qualifying the instrument as additional tier 1 capital pursuant to Brazilian regulations.

The agency said the rating assigned to the notes is positioned three notches below the provisional Ba2 senior unsecured program and Ba2 local-currency deposit ratings of Itau Unibanco SA and two notches below Itau Unibanco Holding SA's Ba3 issuer rating and Itau Unibanco Holding SA (Cayman Islands)'s Ba3 senior unsecured and plain vanilla subordinated debt ratings, in line with Moody's standard notching guidance for non-cumulative preferred securities with a full or partial principal write-down triggered at or close to the point of non-viability.

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