Moody’s rates Aktia hybrids Baa3(hyb)

Moody's Investors Service has assigned a Baa3(hyb) local currency rating to Aktia Bank plc's proposed additional tier 1 capital securities.

The proposed AT1 capital securities rank junior to the bank's senior obligations and tier 2 debt, and rank senior only to common equity tier 1 capital.

The Baa3(hyb) rating reflects Moody's assessment of the likelihood of loss resulting from coupon suspension or principal write-down should the bank breach the 5.125% CET1 trigger ratio, together with the high levels of loss likely to be experienced by small tranches of deeply subordinated instruments which benefit from limited level of subordination, the agency said.

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