Riyadh – Mubasher: Moody's Investors Service has assigned a Baa3(hyb) foreign currency long-term subordinated rating to Arab National Bank (ANB) Sukuk Ltd's planned issuance of backed US dollar-denominated subordinated certificates with a contractual point of non-viability (PONV) features.

The rating captures the specific characteristics of this class of securities and their relative ranking in the liability structure of the bank, the credit rating agency said in a report on Monday.

It further reflects ANB's Adjusted BCA that constitutes the anchor point for positioning debt liabilities on Moody's global rating scale. The Saudi bank carries long-term deposit ratings of A2 negative, underpinned by a baseline credit assessment (BCA) and Adjusted BCA of baa1.

“The payment obligations associated with the certificates are direct obligations of Arab National Bank, ranking pari passu with all other Tier 2 subordinated debt of Arab National Bank and the holders of the certificates are therefore effectively exposed to Arab National Bank’s Tier 2 subordinated credit risk,” the report read.

Earlier today, ANB said it intends to issue US dollar-denominated Tier 2 capital Sukuk by way of an offer to eligible investors in Saudi Arabia and internationally.