Belfius Bank S.A./N.V. Proposed Additional Tier 1 Instrument Rated 'BB'

PARIS (S&P Global Ratings) Jan. 18, 2018--S&P Global Ratings said today that it had assigned a 'BB' long-term issue rating to the proposed perpetual additional Tier 1 (AT1) capital instrument to be issued by Belfius Bank SA/NV (A-/Stable/A-2). We understand from the proposed AT1 securities' terms and conditions that the instrument will comply with the EU's latest capital requirements directive (CRD IV), which is the EU's implementation of Basel III. We also understand that the preferred securities will rank senior to ordinary shares, but will be subordinated to more senior debt, including Belfius Bank's Tier 2 debt. In accordance with our methodology on hybrid capital ("Bank Hybrid Capital And Nondeferrable Subordinated Debt Methodology And Assumptions," published Jan. 29, 2015), we

...PARIS (S&P Global Ratings) Jan. 18, 2018--S&P Global Ratings said today that it had assigned a '##' long-term issue rating to the proposed perpetual additional Tier 1 (AT1) capital instrument to be issued by Belfius Bank SA/NV (A-/Stable/A-2). We understand from the proposed AT1 securities' terms and conditions that the instrument will comply with the EU's latest capital requirements directive (CRD IV), which is the EU's implementation of Basel III. We also understand that the preferred securities will rank senior to ordinary shares, but will be subordinated to more senior debt, including Belfius Bank's Tier 2 debt. In accordance with our methodology on hybrid capital ("Bank Hybrid Capital And Nondeferrable Subordinated Debt Methodology And Assumptions," published Jan. 29, 2015), we are assigning the AT1 securities a '##' rating, four notches below our '###+' assessment of Belfius Bank's stand-alone credit profile. We calculate this four-notch difference as follows: + One notch to reflect...

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