Fitch Rates Global Bank Corp.'s Upcoming Sr Unsecured Notes Due 2026 'BBB-(EXP)'
These notes will constitute direct, unconditional and unsecured senior obligations of the issuer and will rank pari passu among themselves and with all other unsubordinated and unsecured obligations of GB.
The proceedings of this issuance will be used to fund the purchase (as repayment) of the covered bonds due 2017 that are tendered in a Tender Offer. Fitch considers that the additional notes do not materially alter the risk profile of the issuer or of the outstanding debt previously rated.
KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as the bank's Issuer Default Rating (IDR), in accordance with Fitch's rating criteria. GB's IDR is driven by its consistent strategy, good profitability and asset quality indicators, funding diversification and sound positioning within its core market. The bank's ratings also factor in its moderate capitalization ratios and moderate loan portfolio concentration by size.
RATING SENSITIVITIES
[Any change in GB's IDR will have an impact on the senior unsecured notes rating.
For further information about the rating sensitivities for GB's IDR please see the bank's latest press release: 'Fitch Affirms Global Bank Corporation's IDR at 'BBB-' Following Peer Review; Outlook Stable', dated Oct. 26, 2015, available at www. fitchratings. com.]
Fitch has assigned the following rating to GB:
--Ten-year USD500 million senior unsecured notes 'BBB-(EXP)'.
Fitch currently rates GB as follows:
--Long-term IDR 'BBB-'; Outlook Stable;
--Short-term IDR 'F3';
--Viability Rating 'bbb-';
--Support Rating '5';
--Support floor 'NF';
--USD550 million senior unsecured notes due 2019 'BBB-'.
--Long-term national rating 'AA(pan)', Outlook Stable;
--Short-term national rating 'F1+(pan)';
--Long-term issuance program in El Salvador 'AAA(slv)'.
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