Bulletin: Nationwide Building Society Ratings Unaffected by Further Issuance Of Core Capital Deferred Shares

LONDON (S&P Global Ratings) Sept. 8, 2017--S&P Global Ratings said today that its ratings and outlook on Nationwide Building Society (Nationwide; A/Negative/A-1) are unaffected by the announcement that the company will raise net proceeds of just over £790 million from the issuance of further core capital deferred shares (CCDS). We treat the CCDS as equity, in line with the regulatory treatment of these instruments as common equity Tier 1 capital. We estimate that the CCDS issuance may have up to an 80-basis-point (bps) positive impact on our calculation of Nationwide's risk-adjusted capital (RAC) ratio, which was 9.9% as of April 4, 2017. The CCDS issuance does not affect our adequate assessment of Nationwide's capital and earnings position. As highlighted in

...LONDON (S&P Global Ratings) Sept. 8, 2017--S&P Global Ratings said today that its ratings and outlook on Nationwide Building Society (Nationwide; A/Negative/A-1) are unaffected by the announcement that the company will raise net proceeds of just over ú790 million from the issuance of further core capital deferred shares (CCDS). We treat the CCDS as equity, in line with the regulatory treatment of these instruments as common equity Tier 1 capital. We estimate that the CCDS issuance may have up to an 80-basis-point (bps) positive impact on our calculation of Nationwide's risk-adjusted capital (RAC) ratio, which was 9.9% as of April 4, 2017. The CCDS issuance does not affect our adequate assessment of Nationwide's capital and earnings position. As highlighted in our research update on Aug. 14, 2017 (see "Nationwide Building Society Affirmed At 'A/A-1' Following Risk-Adjusted Capital Revision; UCO Removed; Outlook Negative," on RatingsDirect), a potential heightening of economic risk in the...

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