National Australia Bank's Capital Notes 6 Rated 'BBB-'

SYDNEY (S&P Global Ratings) June 6, 2022--S&P Global Ratings today said it has assigned its 'BBB-' issue credit rating to National Australia Bank Ltd.'s (NAB; AA-/Stable/A-1+) proposed Capital Notes 6 (CN6). We rate NAB's CN6 four notches below the NAB group's stand-alone credit profile (SACP) of 'a'. The starting point of the group SACP reflects our view that the Australian government's support for NAB and other Australian banks--if needed--is unlikely to extend to hybrid capital instruments issued by the banks. To arrive at the rating on NAB's CN6, we deduct four notches from the NAB group'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

...June 5, 2022 SYDNEY (S&P Global Ratings) June 6, 2022--S&P Global Ratings today said it has assigned its '###-' issue credit rating to National Australia Bank Ltd.'s (NAB; ##-/Stable/A-1+) proposed Capital Notes 6 (CN6). We rate NAB's CN6 four notches below the NAB group's stand-alone credit profile (SACP) of 'a'. The starting point of the group SACP reflects our view that the Australian government's support for NAB and other Australian banks--if needed--is unlikely to extend to hybrid capital instruments issued by the banks. To arrive at the rating on NAB's CN6, we deduct four notches from the NAB group'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 the proposed issue...

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