27. Apr 2017 Rating news – Cross-sector
Scope rates ING Group’s new Tier 2 instruments at A-/Stable
The rating applies to Tier 2 securities without trigger issued by ING Group.
Today, Scope assigned ratings to securities issued by ING Group that qualify as Tier 2 capital under CRD IV. These instruments, consistent with the agency’s methodology to rate bank capital securities, are rated A-, two notches below the rating of senior unsecured debt.
ING has recently elected the Group as resolution entity, and going forward TLAC/MREL-eligible debt will be issued by the holding company. The EUR 1bn Fixed Rate Subordinated Notes due 11 April 2028 were issued in exchange for notes issued by the Bank, consequently the rating previously assigned to the latter was withdrawn.
Scope notes that the other ratings assigned to ING are: Issuer Credit-Strength Rating (ICSR) of ING Bank at AA-; senior unsecured debt ratings of ING Bank and Group at A+; ratings for AT1 securities of ING Group at BBB; and ING Bank’s short-term ratings at S-1. All ratings have a Stable Outlook.
Legal and regulatory disclosures
Information pursuant to Regulation (EC) No 1060/2009 on credit rating agencies, as amended by Regulations (EU) No. 513/2011 and (EU) No. 462/2013
This report is issued by Scope Ratings AG, Berlin, District Court for Berlin (Charlottenburg) HRB 161306 B, Executive Board: Torsten Hinrichs (CEO), Dr Stefan Bund and Dr Sven Janssen.
The Lead Analyst is Chiara Romano, Analyst.
Responsible for approving all rating actions: Sam Theodore, Managing Director.
The rating history for each issuer and debt is available on the individual public rating cards. Please follow the links below:
ING Bank NV & ING Groep NV
The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months. A rating change is, however, not automatically ensured.
The ratings were not requested by the issuers (unsolicited rating) and were prepared without participation of the issuers.
Key sources of information for the rating
Website of the rated entity/issuer | Annual reports/semi-annual reports of the rated entity/issuer | performance records | Annual financial statements | Data provided by external data providers | External market reports | Press reports | other public information
Scope Ratings considers the quality of the available information on the evaluated company to be satisfactory. Scope uses information and data that it considers to be accurate and reliable. Scope cannot, however, independently verify the reliability and accuracy of such information and data.
Examination of the rating by the rated entity prior to publication
Prior to publication, the rated entities were given the opportunity to examine the rating and the rating drivers, including the principal grounds on which the credit rating or rating outlook is based. The rated entity was subsequently provided with at least one full working day, to point out any factual errors, or to appeal the rating decision and deliver additional material information. Following that examination, the ratings were not modified.
The methodologies applicable for this rating actions “Bank Rating Methodology” (May 2016) is available on www.scoperatings.com. The historical default rates of Scope Ratings can be viewed on the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s default rating, definitions of rating notations and further information on the analysis components of a rating can be found on www.scoperatings.com.
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