OREANDA-NEWS.  Fitch Ratings has assigned SNS Bank NV's (SNS Bank) Tier 2 subordinated debt issue a final Long-term rating of 'BBB-'.

The final rating is in line with the expected rating Fitch assigned to the notes on 23 October 2015 (see "Fitch Rates SNS Bank's Upcoming Tier 2 Debt 'BBB-(EXP)'" at www.fitchratings.com).

KEY RATING DRIVERS
The issue is rated one notch below SNS Bank's 'bbb' Viability Rating (VR), reflecting the higher than average loss severity of this type of debt than senior unsecured obligations. Fitch did not apply additional notching for incremental non-performance risk relative to the VR given that any loss absorption would only occur once the bank reaches the point of non-viability.

RATING SENSITIVITIES
The issue's rating is sensitive to changes in SNS Bank's VR. The latter is sensitive to increased risk appetite, particularly if that would worsen the bank's asset quality and capitalisation in the longer term. Given that the bank still depends on wholesale markets to fund part of its loan book, reduced liquidity buffers or significant shortening of maturities would also be rating-negative.

The issue's rating is also sensitive to a change in Fitch's assessment of loss severity or non-performance risk.