OREANDA-NEWS. Fitch Ratings expects to rate American Express Company's (AXP, rated 'A+/F1' by Fitch) proposed issuance of Noncumulative Preferred Shares series C 'BBB-.'

This preferred issuance follows the issuance of \$750 million in Noncumulative Preferred Shares series B in November 2014. The size of the proposed issuance, as well as the dividend rate will be determined at the time of issuance.

KEY RATING DRIVERS - Preferred Shares

AXP's preferred stock rating is five notches below the entity's Viability Rating (VR) of 'a+' in accordance with Fitch's assessment of each instruments respective non-performance and relative loss severity risk profile. The preferred stock rating includes two notches for loss severity given these securities deep subordination in the capital structure, and three notches for non-performance given that the coupon of the securities is non-cumulative and fully discretionary.

Fitch has accorded these preferred securities equity credit of 50%, which is in line with its methodology on assessing and rating bank subordinated and hybrid securities.

RATING SENSITIVITIES - Preferred Shares

The preferred stock ratings are directly linked to AXP's VR and would move in tandem with any changes in AXP's credit profile.