TEXT-Fitch affirms NKBM's hybrid instrument at 'CC'
(The following statement was released by the rating agency)
Jan 17 - Fitch Ratings has affirmed Nova Kreditna Banka Maribor d.d.'s (NKBM) hybrid capital instrument (ISIN: XS0325446903) at 'CC'. The bank's other ratings are unaffected by this action.
RATING ACTION RATIONALE, DRIVERS AND SENSITIVITIES
The affirmation follows the bank's announcement on 11 January 2013 that it would defer the coupon on the instrument. The affirmation reflects the cumulative nature of the coupon deferral, the fact that deferral has only been announced for 2013 and the absence, to Fitch's knowledge, of any plans to write down or convert into equity the remaining outstanding securities.
The rating of the instrument could be downgraded if the bank's Viability Rating ('b-') was downgraded or if the securities are written down or converted. The instrument rating could be upgraded if the instrument becomes performing again and the bank's Viability Rating was upgraded.
The rating actions are as follows:
Long-term foreign currency IDR: 'BBB-', Negative Outlook, unaffected
Short-term foreign currency IDR: 'F3 ', unaffected
Support Rating: '2', unaffected
Support Rating Floor: 'BBB-', unaffected
Viability Rating: 'b-', unaffected
Hybrid capital instrument: affirmed at 'CC'