Fitch did 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.
Chapters address the scope of application of general contract principles, the concept of non-performance
, the force majeure excuse, and hardship, along the way examining such elements as contractual risk allocations, unforseeability of an impediment, impediments beyond the typical sphere of risk and control of the obligor, responsibility for third parties, legal impediments, involvement of states or state enterprises, the hardship threshold test, frustration of purpose, irreconcilable differences, and comparison with exemptions under domestic legal systems.
ACGL's hybrid securities ratings could be lowered by one notch to reflect non-performance
risk should Fitch view Bermuda's regulatory environment as becoming more controlling in its supervision of (re)insurers.
in case of late payment after each start of the delay, 1% of the fee, but up to 30% of the fee, in case of non-execution 30% of the fee, in case of non-performance
of a given drawdown 30% of the fee settlement; in the event of non-performance
of the entire contract (if the client terminates the entire contract by extraordinary notice or terminates the entire contract) 30% of the contractual value left unanswered.
Additional Tier 1 securities are rated five notches below Nordea's VR to reflect the higher-than-average loss severity risk of these securities (two notches from the VR) as well as the high risk of non-performance
(an additional three notches).
In case of non-performance
of the entire contract (if the Customer cancel the entire contract extraordinary notice or withdraws from the entire contract) 30% of the contract value remained without fulfillment;
We expect to apply a baseline recovery assumption of 'poor' to the proposed notes, reflecting the level of subordination, and our assessment of 'moderate' non-performance
risk due to the notes' mandatory interest and redemption deferral features.
We have applied to the Tier 2 notes a baseline recovery assumption of 'poor', reflecting the level of subordination, and a non-performance
risk assessment of 'moderate', reflecting the mandatory interest deferral feature.
We do not notch the notes for non-performance
risk because there is no coupon flexibility included in their terms.