Downgrade di Moody's su SNS
Moody's reviews long-term ratings of all SNS REAAL's entities for downgrade
Copio e incollo la parte sui subordinati. Ci sono alcune cosette da fare attenzione:
- la 523 un coupon facoltativo (come sapevamo), ma potrebbe avere un prospetto che consente di essere cambiato per essere compliant come T1, quindi secondo Moody's potrebbe addirittura assorbire le perdite.
- la 482 ha un coupon obbligatorio finchè la banca ha riserve disponibili (esaurite le riserve disponibile, il coupon verrebbe cancellato), ma il prospetto
non può essere cambiato (NB: sono prospetti retti dalla legge olandese, non inglese...
)
- la 155 è cumulativa, il prospetto
non può essere cambiato e se cessasse di qualificarsi come T1, avrebbe i coupon obbligatori.
NB: vorrei stressare il fatto che i T1 non sono tutti uguali e la cedola non è l'unica cosa da guardare (Ovag docet....).
--- HYBRID INSTRUMENTS
Moody's rating actions on the hybrid securities issued by several of SNS REAAL's entities reflect the weakened credit profiles of these entities, as well as (1) Moody's expectations for an increased risk of omission of future coupon payments; and (2) the potential for intervention by the EC that also increases the risk of a principal write-down on some instruments.
Moody's notes that the terms and conditions of these hybrids allow -- or in some cases oblige -- the entities to defer coupons, subject to certain triggers. Given the weakening credit profile of SNS Bank and the risk of contagion to the holding company and to the insurance operations, the probability has increased that SNS REAAL could skip the coupons on some of these debts.
Moody's also says that there is an increased probability that SNS REAAL will not be able to repay the State Aid it received in 2008, because of the overall weakening of the group's credit profile. This could prompt the EC to impose restrictions on the Group as a whole, including coupon deferrals on hybrid instruments.
The downgrade of SNS Bank's Junior Subordinated notes [NB: è LA SNS 482] to Caa3(hyb) from B1(hyb) reflects (1) the downgrade of SNS Bank's standalone financial strength rating; (2) the existence of a mandatory coupon suspension mechanism in the event that the bank has no distributable items; and (3) the non-cumulative feature of the instrument. The Junior Subordinated notes are rated three notches below SNS Bank's baseline credit assessment of b3. The rating is on review for downgrade, in line with the standalone credit assessment of the bank.
The downgrade of SNS Bank's Tier 1 Notes [NB: è LA SNS 523] to Ca(hyb) from B1(hyb) reflects (1) the downgrade of SNS Bank's standalone financial strength rating; (2) the existence of a mandatory coupon suspension mechanism tied to a breach of minimum solvency ratios or to regulatory intervention; (3) the optional coupon suspension mechanism subject to a look-back period of 6 months; and (4) the non-cumulative feature of the instrument.
In addition, the instruments contain a variation provision, which allows the issuer to vary the terms of the securities so that they remain compliant with Tier 1 requirements set by the Dutch regulator, possibly posing additional credit risk for investors.
The Tier 1 notes [NB: è LA SNS 523] are rated one notch below the Junior Subordinated notes[NB: è LA SNS 482], as Moody's considers them to have terms which lead to higher credit risk. This reflects notably the possibility that part of the principal may be written down through the variation of the terms of the documentation.
The downgrade of SNS REAAL's Capital Securities [NB: è LA SNS 155]to Caa2(hyb) from Ba3(hyb) reflects the similar action taken on SNS Bank's hybrid debt ratings. The downgrade of the hybrid debt rating also captures the higher risk of coupon deferral on this instrument and the cumulative nature of the coupon skip.
The downgrade of the ratings on the hybrid debts issued by SRLEV to Ba1(hyb) from Baa3(hyb) also reflects Moody's opinion of an increased probability of deferral of coupons on these securities and the cumulative nature of the coupon skip.
