...December 16, 2021 - On Dec. 9, 2021, S&P Global Ratings published its revised "Criteria | Financial Institutions | General: Financial Institutions Rating Methodology," and placed its ratings on certain European financial institutions under criteria observation (UCO). - Our analysis of banks' additional loss-absorbing capacity (ALAC) continues to focus on the prospects for full and timely payment of senior preferred creditors' claims. Under our revised criteria, however, our ALAC measure now centers on banks' recapitalization capacity once losses have been absorbed. - Through this revised lens and for financial institutions following a single-point-of-entry (SPE) resolution approach, we now see that an additional four European banking groups have built and maintain substantial recapitalization capacity that, aided by a supportive resolution strategy, is likely to protect senior preferred debtholders if the banks were to fail. - Our assessments of these banks' stand-alone creditworthiness...
