Fitch Rates TBC Bank's Perpetual AT1 Notes Final 'B-'

Fitch Ratings has assigned JSC TBC Bank's (TBC) USD125 million perpetual additional Tier 1 (AT1) notes a final long-term rating of 'B-'.

Fitch expects the coupon omission to occur before the bank breaches the notes' 5.125% CET1 trigger, most probably if TBC's capital ratios fall below minimum capital requirements, including buffers, established by the NBG. This risk is somewhat mitigated by TBC's reasonable internal capital generation capacity and the bank's intention to maintain the combined capital ratios at least 100bp higher than the minimum required levels.

The notes have no established redemption date. However, TBC has an option to repay the notes after the first coupon reset date (in 2024) and on every subsequent interest payment date, subject to NBG's approval.