S&P Calls National Bank of Greece (NBG) Preferred Offer 'Distressed Exchange'
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Standard & Poor's Ratings Services said today that it defined the recently completed tender offer by National Bank of Greece (NYSE: NBG) on five series of preferred securities issued by National Bank of Greece Funding Ltd. as a "distressed exchange" under its criteria because the offer implied that investors would receive less value than the original securities had promised. The securities were guaranteed by NBG and the tender offer launched on May 8, 2013, and completed on May 23.
The issuer did not send us the relevant information on this exchange when it launched the offer. Therefore, we did not take the relevant rating actions on the preferred securities and subordinated debt at that time.
Had we received the information punctually, we would have lowered to 'C' from 'CC' the ratings on three series--National Bank of Greece Series A Preferred Securities, Series D CMS-Linked Preferred Securities, and Series E Preferred Securities--during the period of the offer. We would have then restored the rating on these securities to 'CC' on completion of the offer. We understand that these three series had an outstanding value of €50 million after the offer completed.
The offer would not have had any impact on the issue rating on the Series B preferred securities and Series C CMS Linked preferred securities. At the time of the offer, these were both rated 'C', reflecting the bank's decision to defer payment of the coupon on the due date, May 7, 2013. We understand that these two series had an outstanding value of €32 million after the offer completed.
The issuer did not send us the relevant information on this exchange when it launched the offer. Therefore, we did not take the relevant rating actions on the preferred securities and subordinated debt at that time.
Had we received the information punctually, we would have lowered to 'C' from 'CC' the ratings on three series--National Bank of Greece Series A Preferred Securities, Series D CMS-Linked Preferred Securities, and Series E Preferred Securities--during the period of the offer. We would have then restored the rating on these securities to 'CC' on completion of the offer. We understand that these three series had an outstanding value of €50 million after the offer completed.
The offer would not have had any impact on the issue rating on the Series B preferred securities and Series C CMS Linked preferred securities. At the time of the offer, these were both rated 'C', reflecting the bank's decision to defer payment of the coupon on the due date, May 7, 2013. We understand that these two series had an outstanding value of €32 million after the offer completed.
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