National Australia Bank Ltd.'s Additional Tier 1 Capital Notes 5 Issue Rated 'BBB-'

SYDNEY (S&P Global Ratings) Nov. 16, 2020--S&P Global Ratings today said it has assigned its 'BBB-' issue credit ratings to National Australia Bank Ltd.'s (NAB; AA-/Negative/A-1+) proposed Additional Tier 1 Capital Notes 5 (CN5). We rate NAB's CN5 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 the NAB CN5, 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

...November 15, 2020 SYDNEY (S&P Global Ratings) Nov. 16, 2020--S&P Global Ratings today said it has assigned its '###-' issue credit ratings to National Australia Bank Ltd.'s (NAB; ##-/Negative/A-1+) proposed Additional Tier 1 Capital Notes 5 (CN5). We rate NAB's CN5 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 the NAB CN5, 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...

Ratings Action