Moody’s rates Itau Unibanco debt B2 (hyb)

Moody's Investors Service said it assigned a B2 (hyb) rating to the proposed dollar-denominated non-cumulative, non-convertible non-viability perpetual additional tier 1 capital securities to be issued by Itau Unibanco Holding SA (Cayman Islands).

At the same time, the agency assigned a provisional B2 foreign currency preferred non-cumulative securities medium-term note rating to the existing $100 billion global medium-term note program of Itau Unibanco Holding, acting through its head office or its Grand Cayman Branch.

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.

Moody’s said the B2 (hyb) rating is positioned three notches below the senior debt and deposit ratings of Itau Unibanco SA and two notches below Itau Unibanco Holding's Ba3 issuer rating and its senior unsecured, and plain vanilla subordinated debt ratings, in line with the agency’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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