Scope Ratings reiterates the view that the primary role of capital instruments, particularly AT1 securities, is to provide a private-sector alternative for strengthening the capital positions of financial institutions. Regulatory authorities have demonstrated their willingness to use them as needed. Looking ahead, the headroom to the MDA trigger level is likely to be become only one of several metrics to monitor. An issuer's credit fundamentals, however, will remain key for determining the likelihood of incurring losses.

The report accompanies the 4th edition of Scope's AT1 Handbook. This is our annual compendium of detailed individual analytical reports on specific AT1 securities and includes new research on inaugural issuers as well as updated reports on securities rated previously. Scope rates over 80 AT1 securities issued by 21 European banks in 11 countries.

Download the AT1 Handbook.

Analyst Conference Call

On Wednesday, 19th July, at 3pm UK time (4pm CET or 10am EDT) Scope's bank analysts will host a conference call to review the latest developments in the AT1 market.

To register for the call, please click here.