Fitch gives Abanca notes B

Fitch Ratings said it assigned Abanca Corporacion Bancaria, SA's (BB+/positive/bb+) planned additional tier 1 capital notes an expected rating of B.

The agency said the rating assigned to the securities is four notches below Abanca's bb+ viability rating, under Fitch's criteria for assigning ratings to hybrid instruments.

The notching comprises two notches for loss severity in light of the notes' deep subordination, and two notches for additional non-performance risk relative to the viability rating given fully discretionary coupons and a high write-down trigger, the agency said.

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