MADRID (S&P Global Ratings) Feb. 13, 2020--S&P Global Ratings today assigned its 'BB' long-term issue rating to Iceland-based Arion Bank's proposed low-trigger Additional Tier 1 (AT1) perpetual capital notes. The rating is subject to our review of the notes' final documentation. This is the bank's first issuance of AT1 notes. In accordance with our criteria for hybrid capital instruments, "General Criteria: Hybrid Capital: Methodology And Assumptions," published July 1, 2019, on RatingsDirect, the 'BB' issue rating reflects our analysis of the proposed instrument and Arion Bank's 'bbb+' stand-alone credit profile (SACP). To derive the rating on the proposed notes, we notch down from our SACP assessment of Arion Bank. The resulting issue rating is four notches below the SACP to
