In the context of Scope Ratings’ strategy of focussing on the needs of institutional investors, Scope will offer its unsolicited bank and covered bond credit ratings on a subscription basis only via its credit intelligence platform.

Scope Ratings has updated its rating report BNP Paribas’ AT1 securities.

The Additional Tier 1 market reaches a landmark in 2018 as the earliest issues hit their first call dates. The investor base has grown, and terms and structures have standardised. But what lessons should be learned from developments in this market?

Scope Ratings has updated its rating report on BNP Paribas, rated AA- with Stable Outlook

Rating upgrade reflects Scope’s view of these banks’ reassuring liquidity dynamics, positively impacted by European supervisors’ enhanced focus on bank liquidity and funding.

The handbook includes an assessment of how risks in the AT1 market are evolving. Recent developments concerning Banco Popular and Bremer Landesbank demonstrate the importance of issuer fundamentals when evaluating the likelihood of incurring losses.

Scope Ratings has updated its rating report on BNP Paribas' AT1 securities.

Scope Ratings has updated its rating report on BNP Paribas, rated AA- with Stable Outlook

Aggregate amount of Tier 2 securities rated is equivalent to nearly EUR 40bn; all rated securities were issued publicly in 2015-2016 by banks already rated by Scope and qualify as Tier 2 capital under CRD IV-CRR.

The ratings are driven by Scope’s fundamental assessment of the legal framework and resolution regimes applying to covered bonds issued by banks rated by Scope.