...STOCKHOLM (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today said that it has assigned its '###-' long-term issue rating to the proposed Swedish krona-denominated tier-2 nondeferrable, subordinated notes of Islandsbanki hf (###+/Stable/A-2). The proposed notes will be drawn from the bank's $2.0 billion global medium-term notes program. The rating is subject to our review of the final issuance documentation. The subordinated notes are the first market issuance of capital instruments by an Icelandic bank since the 2008 banking sector collapse. We expect the instruments will be tier-2 regulatory capital for Islandsbanki, which continues to optimize its capital base by reducing its high share of equity via extraordinary dividend payouts. Our '###-' issue rating is two notches below our assessment of the bank's '###+' stand-alone credit profile. As per the notes' terms and conditions, we consider the instruments to be subordinated to senior creditors' claims, and note that the instruments...
