Scope Ratings today assigned a rating of BBB- with a Positive Outlook to ING Group’s 6% USD 1bn and 6.5% USD 1.25bn perpetual Additional Tier 1 contingent convertible securities issued in April 2015. The securities feature a 7% CET1 trigger on a transitional basis for conversion into ordinary shares. This is the first rating publicly assigned by Scope to AT1 securities issued by a Dutch bank.

The BBB- ratings stand four notches below ING’s Issuer Credit Strength Rating (ICSR) of A. These four notches are the minimum level applied to bank’s AT1 securities – as detailed in Scope’s rating methodology for bank capital instruments (please see at www.scoperatings.com).

With ING Group’s solid capitalisation and earnings generation capabilities, no further notches were added for additional coupon cancellation or principal loss absorption risks.

Scope calculates a gap to the combined buffer requirement (CBR) of 2.5% based on estimated 2016 requirements and ING’s CET1 capital position at year-end 2015. This calculation includes Pillar 2 requirements. This gap is at the higher end for European banks within the peer group. The rating agency also highlights that ING’s ample distributable items should not constitute a constraint to coupon payments.

This rating has not been solicited by the issuer and is based on public information.

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