CaixaBank S.A. Proposed Additional Tier 1 Instrument Rated 'BB-'

MADRID (S&P Global Ratings) May 29, 2017--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 notes to be issued by CaixaBank S.A. (BBB/Positive/A-2). We understand from the proposed AT1 notes' 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 notes will rank senior to ordinary shares, but will be subordinated to more senior debt, including CaixaBank'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

...MADRID (S&P Global Ratings) May 29, 2017--S&P Global Ratings said today that it had assigned a '##-' long-term issue rating to the proposed perpetual additional Tier 1 (AT1) capital notes to be issued by CaixaBank S.A. (###/Positive/A-2). We understand from the proposed AT1 notes' 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 notes will rank senior to ordinary shares, but will be subordinated to more senior debt, including CaixaBank'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 notes a '##-' rating, four notches below our '###' assessment of CaixaBank's stand-alone credit profile. We calculate this four-notch difference as follows: + One notch to reflect subordination risk. + Two additional...

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