DBRS Assigns new CCC (high) Subordinated debt rating to Novo Banco

DBRS Ratings Limited (DBRS) has assigned a new CCC (high) Subordinated debt rating to Novo Banco S.A. (NB). The trend is Positive, in line with the trend on the Bank’s Long-Term Issuer Rating.

KEY RATING CONSIDERATIONS

The subordinated debt rating is two notches below the B Intrinsic Assessment (IA) of the Bank, in line with DBRS’s notching guidelines in its Global Methodology for Rating Banks and Banking Organisations (May 2017).

RATING DRIVERS

The subordinated debt rating will move in line with the Bank’s ‘B’ Intrinsic Assessment and its Long-Term Issuer Rating of ‘B’, Positive Trend.

Notes:

All figures are in Euros unless otherwise noted.
The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (May 2017). This can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include SNL Financial, company disclosures, the Bank of Portugal and European Banking Authority (EBA). DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU and US regulations only.

Lead Analyst: Maria Rivas, Vice President, Global FIG
Rating Committee Chair: Elisabeth Rudman, Managing Director, Head of EU FIG
Initial Rating Date: August 5, 2014
Most Recent Rating Update: May 3, 2018

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