Fitch rates Abanca notes BB

Fitch Ratings said it assigned an expected rating of BB to Abanca Corporacion Bancaria, SA's subordinated notes due 2028.

The subordinated notes are notched down once from Abanca's BB+ viability rating.

The notching reflects the notes' greater expected loss severity relative to senior unsecured debt, Fitch said.

These securities are subordinated to all senior unsecured creditors, the agency explained.

Fitch said it did not apply additional notching for incremental non-performance risk relative to the viability rating given that, contractually, any write-down would only occur once the bank reaches the point of non-viability.

The rating is sensitive to changes in Abanca's viability rating, the agency said.

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