National Australia Bank (ASX:NAB) has received an AAA rating, with a stable outlook, from Fitch Ratings for its $1.75 billion mortgage-covered bond, according to a Tuesday release.
The fixed-rate bond's rating considers the bank's AA- issuer default rating, the three-notch rating uplift extended to the program, and the over-collateralization protection through its asset percentage of 95%, Fitch said.
The stable outlook stems from a four-notch buffer against an issuer default rating downgrade.
A downgrade of the bank's rating by five or more notches to BBB or below or an asset percentage below 95% could trigger a downgrade of the covered bond, Fitch said.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.