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

MELBOURNE (Standard&Poor's) Feb. 17, 2015— Standard&Poor's Ratings Services today assigned its 'BBB-' issue credit rating to National Australia Bank Ltd.'s (NAB; AA-/Stable/A-1+) proposed NAB Capital Notes. Standard&Poor's rates the NAB Capital Notes four-notches below NAB's stand-alone credit profile (SACP) of 'a'. The starting point of 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 the hybrid capital instruments issued by the banks. To arrive at the rating on the NAB Capital Notes, Standard&Poor's deducts four-notches off NAB's SACP reflecting the following factors: We deduct one-notch for the NAB Capital Notes' subordinated status; Two-notches for the risk of partial or

...MELBOURNE (Standard & Poor's) Feb. 17, 2015-- Standard & Poor's Ratings Services today assigned its '###-' issue credit rating to National Australia Bank Ltd.'s (NAB; ##-/Stable/A-1+) proposed NAB Capital Notes. Standard & Poor's rates the NAB Capital Notes four-notches below NAB's stand-alone credit profile (SACP) of 'a'. The starting point of 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 the hybrid capital instruments issued by the banks. To arrive at the rating on the NAB Capital Notes, Standard & Poor's deducts four-notches off NAB's SACP reflecting the following factors: + We deduct one-notch for the NAB Capital 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 NAB Capital Notes into ordinary shares or write them off, if a Non-Viability...

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