Fitch on Wednesday assigned the new AT1 notes a BBB rating, four notches below UBS Group’s overall viability rating of A, with two notches for “loss severity given the notes’ deep subordination” and two for “incremental non-performance risk.”<\/p>\n

“UBS’s new AT1 notes will contain a permanent write-down mechanism at issue. However, subject to approval by UBS Group AG’s 2024 AGM, the permanent write-down mechanism will be replaced by an equity conversion mechanism from the date of the AGM, which will bring the terms in line with other European markets,” the ratings agency said.<\/p>\n

“The conversion feature would mean that, if approved by the AGM, the notes would be converted into a pre-defined volume of share capital of UBS Group AG if the latter’s common equity Tier 1 (CET1) ratio falls below a 7% trigger, or if a viability event is declared by FINMA [Swiss Financial Market Supervisory Authority].”<\/p>\n<\/div>\n<\/div>\n

Source: www.cnbc.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Fabrice Coffrini | Afp | Getty Images UBS on Wednesday began selling Additional Tier 1 (AT1) bonds \u2014 which were at the heart of controversy during its emergency rescue of Credit Suisse \u2014 for the first time since completing the takeover. The Swiss banking giant is marketing two tranches of U.S. dollar AT1 bonds, a…<\/p>\n","protected":false},"author":1,"featured_media":55092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"WB4WB4WP_MODE":"","WB4WP_PAGE_SCRIPTS":"","WB4WP_PAGE_STYLES":"","WB4WP_PAGE_FONTS":"","WB4WP_PAGE_HEADER":"","WB4WP_PAGE_FOOTER":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[78],"tags":[],"class_list":["post-55091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\n