While capitalisation has weakened qualitatively and quantitatively, GCC banks carry an unweighted average S&P Global Ratings risk
adjusted capital ratio of 11.4 per cent at year-end 2017.
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.
The criteria emphasizes UCHealth's strong net
adjusted capital ratios through-the-cycle, broad reach for high-acuity services as the states only academic medical center (AMC), leading market share position for key high-acuity services in the Denver metro area, generally strong service area characteristics, and strong operating EBITDA margins.
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 10.6% at year-end 2013.
BIF loss ratios adjusted for changes in assets in the last year (BIF losses divided by total assets one year before failure) are lower for banks with
adjusted capital ratios below 5 percent for longer periods.
The criteria emphasizes Kaiser's strong net
adjusted capital ratios, market share lead in California and other key markets, and Fitch's expectation of continued operating margins to support elevated capital spending.
Moody's noted that the banks' capital levels are "weak" and stated risk-
adjusted capital ratios are "overstated" due to the banks' high exposures to zero- risk-weighted Government securities.
