OREANDA-NEWS. Fitch Ratings has assigned ING Bank NV's (A/Stable/a) planned Tier 2 debt issue an expected rating of 'A-(EXP)'.

The assignment of the final rating is contingent on the receipt of final documents conforming to information already received.

KEY RATING DRIVERS
The issue is rated one notch below ING Bank's 'a' Viability Rating (VR), in line with the issuer's outstanding Tier 2 debt. The notching reflects the notes' higher expected loss severity relative to senior unsecured creditors. Fitch does not apply additional notching for incremental non-performance risk relative to the VR given that any loss absorption would only occur once the bank reaches the point of non-viability.

The notes will allow the issuer to substitute these notes for similar instruments issued by its parent, ING Group (A/Stable). ING Group's ratings are aligned with those of the bank, and the rating of this planned issue will be notched off the lower of ING Bank's and ING Group's VRs.

RATING SENSITIVITIES
The issue's rating is sensitive to changes in ING Bank's VR or any notching of ING Group's VR below that of its main operating company. The rating of the notes is also sensitive to a change in Fitch's assessment of loss severity or non-performance risk.