Nordic Credit Rating said today that it has assigned a 'BB-' issue rating to an Additional Tier 1 debt instrument to be issued by Sweden-based NOBA Bank Group AB (publ).
Rationale
The rating reflects the bank's recently issued Additional Tier 1 capital instrument of SEK 799.5m. The instrument is rated four notches below our issuer rating on the bank, according to our methodology for rating debt instruments of financial institutions.
The new instrument does not immediately impact our assessment of the bank's capital position, and the 'BBB' long-term issuer rating on NOBA Bank Group remains unchanged. The instrument improves the bank's pro-forma end-2023 Tier 1 capital ratio to 15.74% from 15.08%, after minority deductions.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB | BBB |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N3 | N3 |
| Senior unsecured issue rating: | BBB | BBB |
| Tier 2 issue rating: | BB+ | BB+ |
| Additional Tier 1 issue rating: | BB- | None |
Contacts:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com
The methodology documents used for this rating are NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024, NCR's Financial Institutions Rating Methodology published on 14 Feb. 2024 and NCR's Rating Principles published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.