Abu Dhabi -  Moody's Investors Service (Moody's) has assigned the provisional 'Baa3' rating to the upcoming issuance of perpetual non-cumulative Additional Tier 1 (AT1) capital securities of First Abu Dhabi Bank (FAB).

The payment obligations under the AT1 capital securities comprise direct, unsecured, conditional, and subordinated obligations of FAB, according to a press release on Monday.

Moody's mentioned that the 'Baa3' rating reflects the bank's standalone creditworthiness and is positioned three notches below the bank's Baseline Credit Assessment (BCA) of a3 and Adjusted BCA of a3.

With a first call date in 2026, the upcoming securities will be perpetual.

The rating agency further remarked that coupons could not be paid on a non-cumulative basis at FAB's discretion and on a mandatory basis.

Noteworthy to mention, on Monday, Reuters reported that FAB has hired banks to arrange an investor call for the issuance of the US dollar-denominated Additional Tier 1 perpetual bonds which are not callable for six years.

Source: Mubasher

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