Moody’s rates Itau Unibanco notes B1(hyb)

Moody's Investors Service said it assigned a B1(hyb) rating to the proposed dollar-denominated contractual non-viability tier 2 subordinated notes to be sold by Itau Unibanco Holding SA. under its $100 billion global medium-term note program.

The capital securities are Basel III-compliant, and their terms and conditions have been defined to qualify the notes as tier 2 capital under Brazilian regulation.

“The B1(hyb) rating assigned to the new tier 2 subordinated notes is positioned two notches below the ba2 adjusted baseline credit assessment (adjusted BCA) of Itau Unibanco SA (IU), in line with Moody's standard notching guidance for contractual non-viability subordinated debt with a full or partial principal write-down triggered at or close to the point of non-viability,” said Moody’s in a press release.

The notes will be due in 2029 with a call option in five years.

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