Moody's: National Bank of Canada preferreds Ba1

Moody's Investors Service said it assigned a Ba1 (hyb) rating to National Bank of Canada's C$350 million of 4.1% Basel III compliant non-viability contingent capital rate-reset preferred shares, series 30. The bank has an Aa3 issuer rating and a stable outlook.

Proceeds will be used for general corporate purposes.

The rating is positioned four notches below the bank's a3 adjusted baseline credit assessment in line with Moody's standard notching guidance for contractual non-viability preferred securities. The agency said an additional notch is added relative to the notching for legacy Canadian noncumulative preferred shares to capture the potential uncertainty related to the timing of loss absorption.

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