S&P rates ABN Amro notes BB

Standard & Poor’s said it assigned a BB long-term issue rating to the proposed undated deeply subordinated additional tier 1 fixed-rate, resettable callable capital securities to be issued by ABN Amro Bank NV.

This is the bank’s first AT1 issuance that complies with the European Union’s capital requirements, the agency said.

The notes will rank senior to ordinary shares, but will be subordinated to more senior debt, including ABN Amro’s tier 2 debt, S&P said.

In accordance with the agency’s criteria for hybrid capital, the BB rating reflects the stand-alone credit profile of the bank. The issue rating is four notches below the bank’s BBB+ stand-alone rating, S&P said.

One notch is for subordination, two notches are for the tier 1 regulatory capital status and one notch is because the notes contain a contractual write-down clause.

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