It should also allow NBAD to operate with very strong capitalisation, as measured by our risk
adjusted capital ratio of above 15 per cent before adjustments over the next 18-24 months.
Consequently, the notes will no longer be eligible for inclusion in the Bank's Risk
Adjusted Capital ratio in accordance with S&P's bank hybrid methodology.
Berlin Hyp's standalone credit profile also benefits from the bank's stable earnings generation throughout the financial crisis and adequate risk
adjusted capital ratios, as reflected in a Basel II Tier 1 ratio of 10.
In the REIT sector, no distinction is made between cumulative and non-cumulative preferred capital; both are assigned to the 50% debt/ 50% equity category to calculate Risk
Adjusted Capital Ratios, and to the 100% equity category to calculate Financial Leverage Ratios.