S&P rates MedioCredito notes B

S&P said it assigned a B long-term issue rating to the tier 2 subordinated notes issued by MedioCredito Centrale SpA.

“Our B issue rating is three notches below our bb stand-alone credit profile assessment on the bank. This reflects our understanding that, in accordance with the terms and conditions, the notes are subordinated to senior creditors' claims and available to absorb losses at the point of the bank's nonviability via statutory loss absorption. Given the notes' lack of going-concern loss absorption, we do not expect to include them in our calculation of MedioCredito Centrale's total adjusted capital,” the agency said in a press release.

The outlook is negative.

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