02. Jun 2017 Rating news – Cross-sector
Scope rates at A+/Stable new TLAC/MREL-eligible senior debt issued by ING Group
Scope rates at A+/Stable new TLAC/MREL-eligible senior debt issued by ING Group; also upgrades to AA-/Stable senior unsecured debt issued by ING Bank (in line with the bank’s existing Issuer Rating).
Today, Scope Ratings upgraded ING Bank’s Senior Unsecured Debt rating to AA- with a Stable Outlook from A+ with a Stable Outlook, aligning it with the bank’s existing Issuer Rating of AA-. The agency also assigned first-time A+ ratings, with a Stable Outlook, to newly issued MREL/TLAC-eligible senior unsecured debt issued by ING Group.
These rating actions reflect Scope’s view that senior unsecured debt which can be eligible for TLAC and/or MREL would be rated at least one notch below both the Issuer Rating and the rating of senior unsecured debt not eligible for MREL/TLAC – whether it is issued by a top holding company or the top operating bank of the group. This view has been detailed by Scope in its bank rating methodology (last updated in May 2017).
Specifically, Scope’s methodology states that “the ratings of senior unsecured debt and other unsecured long-term liabilities which are not eligible for MREL and/or TLAC can be placed at the same level as the Issuer Rating for the AAA-BB rating ranges. This would take into account the material level of protection for this debt category provided by MREL and/or TLAC liabilities, which need to absorb all losses before another layer of protection (…) is put to use”.
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.
The Lead Analyst is Chiara Romano, Senior Analyst.
Responsible for approving all rating actions: Sam Theodore, Managing Director.
- Senior unsecured debt rating for ING Bank NV was first assigned 02.04.2014 and last updated on 31.03.2017
- Senior unsecured debt rating for ING Groep NV was first assigned 05.10.2015 and last updated on 31.03.2017
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 | Annual reports/semi-annual reports of the rated entity | Data provided by external data providers | 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 2017) 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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