National Australia Bank's Capital Notes 8 Rated 'BBB'

MELBOURNE (S&P Global Ratings) May 13, 2024--S&P Global Ratings today assigned its 'BBB' long-term issue rating to National Australia Bank Ltd.'s (NAB) proposed capital notes 8 (CN8). The rating on the CN8 is four notches lower than the 'a+' stand-alone credit profile of NAB (AA-/Stable/A-1+), one of Australia's four major banks. This reflects 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 notes as having intermediate equity content. This

...May 12, 2024 MELBOURNE (S&P Global Ratings) May 13, 2024--S&P Global Ratings today assigned its '###' long-term issue rating to National Australia Bank Ltd.'s (NAB) proposed capital notes 8 (CN8). The rating on the CN8 is four notches lower than the 'a+' stand-alone credit profile of NAB (##-/Stable/A-1+), one of Australia's four major banks. This reflects 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 notes as having intermediate equity content. This reflects 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 wind-up of the...

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