Tier two keeps IG status with S&P
Tier two from banks in core jurisdictions took a ratings hit from Standard & Poor’s on Tuesday, but remained investment grade. Downgrades of capital securities are being watched closely because of worries that appetite for paper that falls below investment grade will be light.
The ratings agency downgraded tier two paper in core jurisdictions on Tuesday, as it stripped out government support assumptions.
Banks from Austria, Finland, Luxembourg, Norway, and Sweden were affected by the cut.
Market participants worry that the buyer base for bank capital instruments will thin out if new
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