Austria-Based Erste Group Bank AG's First Issuance Of Senior Nonpreferred Notes Rated 'A-'

Erste Group Bank AG (Erste) plans to issue its first senior nonpreferred notes, which will contractually rank below its senior unsecured debt, but above subordinated debt and junior instruments. We understand the proposed notes would be subject to conversion or write-down in a resolution after junior instruments, but before more senior obligations including senior preferred notes. We are assigning our 'A-' issue rating to the proposed notes. The rating is one notch lower than our assessment of Erste's stand-alone credit profile (SACP), owing to our view that the proposed notes are subordinated to more senior obligations and do not carry additional default risk. FRANKFURT (S&P Global Ratings) May 15, 2019--S&P Global Ratings today assigned its 'A-' long-term issue rating to

...May 15, 2019 - Erste Group Bank AG (Erste) plans to issue its first senior nonpreferred notes, which will contractually rank below its senior unsecured debt, but above subordinated debt and junior instruments. - We understand the proposed notes would be subject to conversion or write-down in a resolution after junior instruments, but before more senior obligations including senior preferred notes. - We are assigning our 'A-' issue rating to the proposed notes. - The rating is one notch lower than our assessment of Erste's stand-alone credit profile (SACP), owing to our view that the proposed notes are subordinated to more senior obligations and do not carry additional default risk. FRANKFURT (S&P Global Ratings) May 15, 2019--S&P Global Ratings today assigned its 'A-' long-term issue rating to the 500 million seven-year senior nonpreferred notes to be issued by Austria-based Erste Group Bank AG (A/Positive/A-1). The rating is subject to our review of the notes' final documentation. The...

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