National Australia Bank Ltd.'s Additional Tier 1 Capital Notes 4 Issue Rated 'BBB-'

SYDNEY (S&P Global Ratings) Feb. 17, 2020--S&P Global Ratings today said it has assigned its 'BBB-' issue credit ratings to National Australia Bank Ltd.'s (NAB; AA-/Stable/A-1+) proposed Additional Tier 1 (AT1) Capital Notes 4 (NAB CN4). We rate NAB CN4 four notches below NAB's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that it is unlikely that the Australian government's support for NAB and other Australian banks--if needed--would extend to hybrid capital instruments issued by the banks. To arrive at the rating on NAB CN4, we deduct four notches from NAB's SACP reflecting the following factors: One notch for the notes' subordinated status; Two notches for the risk of partial or untimely payment;

...February 16, 2020 SYDNEY (S&P Global Ratings) Feb. 17, 2020--S&P Global Ratings today said it has assigned its '###-' issue credit ratings to National Australia Bank Ltd.'s (NAB; ##-/Stable/A-1+) proposed Additional Tier 1 (AT1) Capital Notes 4 (NAB CN4). We rate NAB CN4 four notches below NAB's stand-alone credit profile (SACP) of 'a'. The starting point of the SACP reflects our view that it is unlikely that the Australian government's support for NAB and other Australian banks--if needed--would extend to hybrid capital instruments issued by the banks. To arrive at the rating on NAB CN4, we deduct four notches from NAB's SACP reflecting the following factors: - One notch for the notes' subordinated status; - Two notches for the risk of partial or untimely payment; and - One notch for a nonviability contingent capital feature that would require NAB to convert all or a proportion of the notes into ordinary shares or write them off if a nonviability trigger event occurred. We have assessed...

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