Moody's rates Alpha Services issue Caa1

Moody's Investors Service said it assigned a Caa1(hyb) rating to Alpha Services and Holdings SA's proposed euro-denominated additional tier 1 perpetual capital instrument with non-viability loss absorption features.

The rating reflects Alpha Bank SA’s baseline credit assessment and adjusted BCA of b1, Moody's advanced loss given failure analysis, resulting in a position that is three notches below the operating bank's b1 adjusted BCA and the low probability of government support for loss-absorbing instruments, resulting in no rating uplift, the agency said.

The expected €300 million of AT1 notes will enhance the banking group's fully-loaded tier 1 ratio and capital adequacy ratio by around 90 basis points to an about pro forma of 13% and 16% respectively, the agency said.

The outlook is stable.

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