UBI Banca SpA's First Additional Tier 1 Notes Assigned 'B+' Rating

MILAN (S&P Global Ratings) Jan. 13, 2020--S&P Global Ratings said today that it assigned its 'B+' long-term issue rating to the proposed low-trigger Additional Tier 1 (AT1) perpetual capital notes to be issued by UBI Banca SpA. The rating is subject to our review of the notes' final documentation. This is the bank's first issuance of Basel III-compliant AT1 notes. In accordance with our criteria for hybrid capital instruments, "General Criteria: Hybrid Capital: Methodology And Assumptions," July 1, 2019, the 'B+' issue rating reflects our analysis of the proposed instrument and UBI Banca's 'bbb-' stand-alone credit profile (SACP). The issue rating stands four notches below the SACP due to the following deductions: One notch because the notes are contractually subordinated;

...January 13, 2020 MILAN (S&P Global Ratings) Jan. 13, 2020--S&P Global Ratings said today that it assigned its 'B+' long-term issue rating to the proposed low-trigger Additional Tier 1 (AT1) perpetual capital notes to be issued by UBI Banca SpA. The rating is subject to our review of the notes' final documentation. This is the bank's first issuance of Basel III-compliant AT1 notes. In accordance with our criteria for hybrid capital instruments, "General Criteria: Hybrid Capital: Methodology And Assumptions," July 1, 2019, the 'B+' issue rating reflects our analysis of the proposed instrument and UBI Banca's '###-' stand-alone credit profile (SACP). The issue rating stands four notches below the SACP due to the following deductions: - One notch because the notes are contractually subordinated; - Two notches to reflect the notes' discretionary coupon payments and regulatory Tier 1 capital status; and - One notch because the notes contain a contractual write-down clause. Although the principal...

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