Moody’s gives IMB notes Baa3 (hyb)

Moody's Investors Service said it assigned Baa3 (hyb) ratings to IMB Ltd.'s A$30 million floating-rate subordinated medium-term notes due June 15, 2026 and A$40 million floating-rate subordinated medium-term notes due May 26, 2027.

Both medium-term notes qualify as Tier 2 capital under the prudential standards set out by the Australian Prudential Regulation Authority (APRA), and are subject to write-off at the point of non-viability.

Moody's rated both issues two notches below the bank's adjusted baseline credit assessment (BCA) of baa1, in line with its standard notching guidance for preferred securities with losses triggered at the point of non-viability on a contractual basis.

The two-notch difference from the adjusted BCA reflects the fact that these notes rank subordinate to senior creditors and reflects the uncertainty associated with the timing of a potential write-off, the agency explained.

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