• News
  • Technology
  • Culture
  • Entertainment
  • Sport
  • Travel
  • Music
  • More
    • Politics
    • Lifestyle
    • TV
    • Games
Thursday, February 2, 2023
  • Login
No Result
View All Result
NEWSLETTER
FINCHANNEL
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
No Result
View All Result
FINCHANNEL
No Result
View All Result
ADVERTISEMENT
Home Business BANKS

Fitch Rates Bank of Georgia’s Upcoming Perpetual AT1 Notes ‘B-(EXP)’

by The FINANCIAL
March 19, 2019
in BANKS
0
Share on FacebookShare on Twitter

The FINANCIAL – Fitch Ratings has assigned Bank of Georgia’s (BOG) upcoming issue of USD-denominated perpetual additional Tier 1 (AT1) notes an expected long-term rating of ‘B-(EXP)’. The final rating is contingent upon receipt of final documents conforming to information already received.

The notes should qualify as AT1 capital in regulatory accounts due to a full coupon omission option at BOG’s discretion and full or partial write-down in case of either BOG’s core equity Tier 1 (CET1) ratio falling below 5.125% (versus 4.5% regulatory minimum, excluding buffers) or due to regulatory interventions by the National Bank of Georgia (NBG). Fitch believes the latter is only possible if BOG breaches minimum regulatory capital or liquidity requirements, or local regulation in any other form. This is currently not expected by Fitch, given a Positive Outlook on BOG’s ‘BB-‘ Long-Term Issuer Default Ratings (IDRs).

The expected rating assigned to BOG’s forthcoming perpetual AT1 notes is three notches lower than the bank’s ‘bb-‘ Viability Rating (VR). According to our Bank Rating Criteria (Criteria), this is the highest possible rating that can be assigned to deeply subordinated notes with fully discretionary coupon omission issued by banks with a VR anchor of ‘bb-‘. The notching comprises:
– Two notches for higher loss severity relative to senior unsecured creditors due to a write-down trigger (CET1 ratio of 5.125%), meaning that AT1 notes may start to absorb losses before BOG breaches its 4.5% minimum Core Tier 1 capital ratio (excluding buffers).

RelatedPosts

EBRD invests €218 million in the Georgian economy

China: Domestic and External Conditions are Leading to a Weakened Economic Outlook

EBRD and FAO mark 25 years of cooperation with US$ 5.5 million initiative

Kosovo becomes first Western Balkans economy to use solar energy for district heating

– One notch for non-performance risk, as BOG has an option to cancel the coupon payments at its discretion. This is more likely if combined Pillar 1 and Pillar 2 capital ratios fall below the combined buffer requirements established by the regulator. This risk is somewhat mitigated by BOG’s reasonable internal capital generation capacity and the bank’s intention to build up its combined capital ratios to about 200bp over the minimum required levels.

The notes will have no established redemption date. However, BOG will have an option to repay the notes after the first coupon reset date (in 2024) subject to NBG’s approval.

BOG’s regulatory Core Tier 1 and Tier 1 ratios were both 12.2% at end-2018. The required statutory minimums for BOG, including capital conservation buffer (2.5%), systemic importance buffer (1%) and several Pillar 2 buffers, were 9.4% and 11.4%, respectively. The countercyclical buffer also applies, but is currently set at 0%. BOG’s regulatory total capital ratio was 16.6% at end-2018 vs. a 15.9% minimum requirement, including buffers.

Fitch may widen the rating notching if non-performance risk increases. For example, this could arise from BOG failing to maintain reasonable headroom over the minimum capital adequacy ratios (including the buffers) or from the instrument becoming non-performing, i.e. if the bank cancels any coupon payment or at least partially writes off the principal. In that case, the issue will be downgraded based on Fitch’s expectations about the form and duration of non-performance.

Upside for the notes is limited as per Fitch’s criteria the minimum notching of deeply subordinated instruments will increase up to four notches, should the VR be upgraded to ‘bb’ from ‘bb-‘.

 

Tags: Fitch Rates Bank of Georgia's Upcoming Perpetual AT1 Notes 'B-(EXP)'
ADVERTISEMENT
The FINANCIAL

The FINANCIAL

Related Posts

EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond
BANKS

EBRD invests €218 million in the Georgian economy

by The FINANCIAL
January 30, 2023
0

The European Bank for Reconstruction and Development (EBRD) supported Georgia’s economy to the tune of €218 million in 2022, with...

Read more
New ADB Project to Showcase Elderly Care Options in the PRC

China: Domestic and External Conditions are Leading to a Weakened Economic Outlook

December 20, 2022
Serbia steps up partnership with FAO and EBRD for stronger agriculture

EBRD and FAO mark 25 years of cooperation with US$ 5.5 million initiative

December 20, 2022
Doing Business 2018: Kosovo Among Top Ten Reformers in the World

Kosovo becomes first Western Balkans economy to use solar energy for district heating

December 20, 2022
Next Post
More female and older workers have boosted Japan’s labour market

More female and older workers have boosted Japan’s labour market

Please login to join discussion
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
Vaccination

How many people died after COVID-19 Vaccination?

November 20, 2021
How to Check KRA Pin Using ID Number

How to Check KRA Pin Using ID Number

June 25, 2018
Full-dose blood thinners not a cure for critically ill COVID-19 patients

How many people have died as a result of a COVID-19 vaccine?

October 4, 2021
Rishi Sunak’s billionaire wife also runs these three companies. 

Rishi Sunak’s billionaire wife also runs these three companies. 

October 25, 2022
Startled sherman furnished repair gang kansas

Startled sherman furnished repair gang kansas

0
Ft. trace falling nixon recovery sacred

Ft. trace falling nixon recovery sacred

0
FIFA 16 review: A mammoth footy bit of magic

Prepare mounted cited perspective

0
Protest threatened hurt conferences observation precise

Protest threatened hurt conferences observation precise

0
Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

February 1, 2023
Marburg vaccine shows promising results in first-in-human study

Marburg vaccine shows promising results in first-in-human study

January 30, 2023
Maintenance Tips for Fire Extinguishers

Maintenance Tips for Fire Extinguishers

January 30, 2023
EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond

EBRD invests €218 million in the Georgian economy

January 30, 2023

Popular Last 24h

  • EasyJet to fly to London from Stockholm Arlanda

    The London Diplomatic List, Addresses, Contacts & Working Hours

    0 shares
    Share 0 Tweet 0
  • Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

    0 shares
    Share 0 Tweet 0
  • How to Check KRA Pin Using ID Number

    0 shares
    Share 0 Tweet 0
  • YouPorn made TikTok like app for adults

    0 shares
    Share 0 Tweet 0
  • Research: Is Portuguese real estate worth buying right now? (2022, Q3)

    0 shares
    Share 0 Tweet 0
  • Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

    0 shares
    Share 0 Tweet 0
  • UK Government has ordered to freeze assets of additional 300 persons related to ISIL and AL-QAIDA

    0 shares
    Share 0 Tweet 0

LATEST POSTS

Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

Ukraine billionaire Ihor Kolomoisky targeted in new anti-corruption swoop

February 1, 2023
Marburg vaccine shows promising results in first-in-human study

Marburg vaccine shows promising results in first-in-human study

January 30, 2023
Maintenance Tips for Fire Extinguishers

Maintenance Tips for Fire Extinguishers

January 30, 2023
EBRD will issue a loan to help GOGC refinance a $250 Mln Eurobond

EBRD invests €218 million in the Georgian economy

January 30, 2023
Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

Chinese DJI Drone Business is Blooming in Russo-Ukrainian War

January 30, 2023
Protected: Jason Colodne and Colbeck Capital Management Support Stand Up for Homes with Hope

Protected: Jason Colodne and Colbeck Capital Management Support Stand Up for Homes with Hope

January 30, 2023
What are the top 3 strategies for business automation?

Protected: Want Loyal Employees? Do This

January 26, 2023
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison Sentence

Second Bank Employee Admits Role in Fraud Conspiracy

January 25, 2023
Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

January 25, 2023
Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

January 25, 2023

LATEST INTERVIEWS

Russian Patriarch Kirill Says Dying In Ukraine ‘Washes Away All Sins’

Interview: Why Putin Might Prefer A Stalemate To Going Nuclear On Ukraine

by The FINANCIAL
October 22, 2022
0

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

by Tengiz Pachkoria
August 11, 2022
0

“Green business is a key instrument to support business development in a sustainable way”

“Green business is a key instrument to support business development in a sustainable way”

by The FINANCIAL
July 27, 2022
0

Running an environmentally friendly business helps to reduce impact on the environment

Running an environmentally friendly business helps to reduce impact on the environment

by The FINANCIAL
July 27, 2022
0

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

by The FINANCIAL
July 27, 2022
0

“We have planted under 50 000 trees and seedings”

“We have planted under 50 000 trees and seedings”

by The FINANCIAL
July 27, 2022
0

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

by The FINANCIAL
July 27, 2022
0

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

by The FINANCIAL
July 27, 2022
0

Newsletter

ADVERTISEMENT

GET IN TOUCH

E-mail your company news at:

news (at) financial.ge Letters to the Editor: editor (at) finchannel.com

Local Marketing contact:

(+99532) 2252 275 | 76 EXT: 1 (+995 558) 03 03 03 (mobile) marketing (at) finchannel.com

Requests from abroad:

(+99532) 2252 275 | 76 EXT: 7 (+995599) 96 52 52 Email: zviadi (@) finchannel.com Contact video editor: E-mail: video (at) financial.ge

Postal address: 17 Mtskheta str. Tbilisi, Georgia 0179 The FINANCIAL

RESOURCE

  • Work at the FINANCIAL
  • ePaper
  • Advertise in The FINANCIAL
  • Access ePaper
  • Guest posts
  • Contributed articles
  • AmericanStockNews
  • Coupon Codes
  • GLOSSY MAG
American Culture Center
ACC Partner

GUIDEBOOK

  • Meet our team
  • Invest in Georgia
  • Become contributor
  • Archive

FOLLOW US

  • Facebook
  • Twitter
  • Google+
  • Youtube
No Result
View All Result
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.