In this context, it is worth highlighting that Fitch's ratings for GCC banks' subordinated debt
often factor in a high probability that sovereign support will be available for this debt class if and when required.
The proceeds from the subordinated debt
will be used to support the ongoing implementation of PrivateBancorp's Strategic Growth Plan.
The inter-creditor agreement describes the handling of major items such as: a) cross-acceleration; b) blockage of the subordinated debt
interest; c) subrogation; and d) bankruptcy rights.
It included a term loan for 84 per cent of the purchase price and associated expenses and subordinated debt
for the remainder.
The agencies monitor subordinated debt
yields and issuance patterns in evaluating the condition of large depository institution organizations.
Investments usually take the form of senior secured loans, junior secured loans, subordinated debt
investments - which may contain equity or equity-related instruments.
The purpose of Moody's ratings review is to assess the evolving risk profile of these subordinated debt
instruments given (i) the recent global and prudential trends towards imposing losses on junior creditors in the context of government support, and (ii) the implementation of Basel III, which will require Tier 2 instruments to have 'loss absorption' features.
One of the key advantages of subordinated debt
is that, in most cases, bankers will treat the remaining portion of sub-debt as equity when calculating debt/equity ratios.
The study begins by carefully defining market discipline, discusses the motivation for and theory behind a subordinated debt
policy, and presents an extensive summary of existing policy proposals.
All the four Tunisian leasing companies' rated subordinated debt
issues are Lower Tier 2 issues.
Despite its increasing use, however, subordinated debt
remains one of the least understood forms of financing currently available.
has upgraded its rating of Banc One Corporation's subordinated debt
to "AA" from "AA-," adding Banc One to a select but growing number of U.