At press time, North Dakota Insurance Commissioner Jim Poolman reportedly was still trying to implement a compromise that would let insurers continue to classify hybrid securities
they already own as debt but require them to classify newly purchased hybrid securities
Specifically, the British bank's hybrids were upgraded to A- from BBB+ and the Norwegian lender's hybrid securities
rating went up to BBB+ from BBB.
Insurers are concerned over the classification of hybrid securities
as common stock in their portfolios and it has them asking state insurance regulators what it will mean for the amount of capital they need to hold.
At present, Fitch is reviewing its approach regarding the equity credit of banks' hybrid securities
(see 'Related Research' at the end of this release) and therefore is not assigning an equity class to the aforementioned issue of subordinated preferred notes.
17 February 2010 A[cent sign]a'[not sign]a[euro]oe Moody's raised the ratings on certain hybrid securities
of KBC Bank NV, part of Belgium's KBC Groep NV (EBR:KBC), ending a downgrade review.
Fitch currently applies 75% equity credit to hybrid securities
(exclusively cumulative, perpetual preferred stock) for its U.
BANKING AND CREDIT NEWS-12 February 2010-Moody's axes SocGen hybrid securities
on updated rating guidelines, investment status maintained(C)1994-2010 M2 COMMUNICATIONS http://www.
Fitch has also assigned an expected rating of 'B+' to Ixe's planned issue of hybrid securities
LONDON & CHICAGO & NEW YORK -- The poor performance of bank hybrid securities
as a source of loss absorbing capital over the last three years has precipitated a review by Fitch Ratings of its hybrid capital criteria.
Due to its high loss-absorption features, this issue will be considered Class D (75% equity-credit) under Fitch's approach to assess banks' capital provided by hybrid securities
The rating actions implement Fitch's recently published revised guidelines for rating preferred stock and hybrid securities
('Rating Hybrid Securities
', dated Dec.
Fitch recently announced a pending change to its ratings and notching of hybrid securities
which is expected to result in the ratings of many performing hybrids that rank as junior securities being downgraded by one notch.