Fitch rates Yapi ve Kredi Bankasi notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to Yapi ve Kredi Bankasi’s $500 million fixed-rate resettable Basel III-compliant tier 2 notes due 2026.

The final rating is in line with the expected rating assigned to the notes in December 2015, the agency said.

The notes qualify as Basel III-compliant tier 2 instruments and contain contractual loss absorption features that will be triggered at the point of non-viability of the bank, Fitch said.

The notes are notched down once from Yapi’s long-term issuer default rating of BBB, reflecting a belief that bondholders will benefit from support from ultimate parent, UniCredit SpA, the agency said.

The notching includes one notch for loss severity, but no notches for non-performance risk, Fitch said.

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