Mizrahi Tefahot Bank Ltd. Proposed Tier 2 Subordinated Notes Assigned 'BBB-' Rating

PARIS (S&P Global Ratings) March 18, 2021--S&P Global Ratings today said it assigned 'BBB-' issue ratings to the proposed Tier 2 subordinated contingent convertible bonds to be issued by Mizrahi Tefahot Bank Ltd. (A-/Stable/A-2). The rating is subject to our review of the notes' final documentation. This is Mizrahi Bank's first issuance of contingent convertible notes in foreign currency. One notch to reflect contractual subordination with respect to the bank's senior obligations (subordination); and One notch to reflect the loss absorption mechanism built into the instruments by way of instrument principal conversion on the occurrence of the trigger events, as defined in the instruments' terms and conditions, that is a "capital loss absorption event" when core Tier 1 falls below

...March 18, 2021 PARIS (S&P Global Ratings) March 18, 2021--S&P Global Ratings today said it assigned '###-' issue ratings to the proposed Tier 2 subordinated contingent convertible bonds to be issued by Mizrahi Tefahot Bank Ltd. (A-/Stable/A-2). The rating is subject to our review of the notes' final documentation. This is Mizrahi Bank's first issuance of contingent convertible notes in foreign currency. Our ratings on the proposed co-co bonds are two notches lower than our stand-alone credit profile (SACP) on the bank. In accordance with our criteria for hybrid capital instruments (for more information, see "General Criteria: Hybrid Capital: Methodology And Assumptions,"published July 1, 2019, on RatingsDirect), the starting point for the rating on the subordinated co-co notes is the SACP (###+). We don't use the issuer credit rating as the starting point, since it includes government support and we do not expect these instruments to benefit from state support. The issue rating stands two...

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