National Australia Bank's Capital Notes 7 Rated 'BBB-'

MELBOURNE (S&P Global Ratings) Aug. 21, 2023--S&P Global Ratings today assigned its 'BBB-' long-term issue rating to National Australia Bank Ltd.'s (NAB; AA-/Stable/A-1+) proposed NAB Capital Notes 7 (CN7). To arrive at the rating on CN7, we deduct four notches from the 'a' stand-alone credit profile of NAB, 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 as having intermediate equity content, reflecting our view that the

...August 20, 2023 MELBOURNE (S&P Global Ratings) Aug. 21, 2023--S&P Global Ratings today assigned its '###-' long-term issue rating to National Australia Bank Ltd.'s (NAB; ##-/Stable/A-1+) proposed NAB Capital Notes 7 (CN7). To arrive at the rating on CN7, we deduct four notches from the 'a' stand-alone credit profile of NAB, 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 as having intermediate equity content, reflecting our view that the notes would be able to absorb losses or conserve cash, if needed, through nonpayment of coupons, conversion into common equity, or principal write#down, without causing a default or windup of the bank. In addition, we expect...

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