OREANDA-NEWS. Fitch Ratings has assigned ING Bank NV's (A/Stable/a) EUR1bn fixed rate subordinated notes a final rating of 'A-'.

The final rating is in line with the expected rating Fitch assigned to the notes on 6 April 2016 (see "Fitch Rates ING Bank's Planned Tier 2 Issue 'A-(EXP)'' at www.fitchratings.com).

KEY RATING DRIVERS
The issue is rated one notch below ING Bank's 'a' Viability Rating (VR), in line with the issuer's outstanding Tier 2 debt. The notching reflects the notes' higher expected loss severity relative to senior unsecured creditors. Fitch does 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.

The notes allow the issuer to substitute these notes for similar instruments issued by its parent, ING Group (A/Stable). ING Group's VR is aligned with that of its main operating entity ING Bank. This is driven by no remaining double leverage as well as the high fungibility of capital between the holding company and the bank, and regulatory focus on the group as a consolidated entity. The Tier 2 issue is notched off the lower of ING Bank's and ING Group's VRs, which act as anchor ratings, in line with Fitch's criteria.

RATING SENSITIVITIES
The issue's rating is sensitive to changes in ING Bank's VR or any notching of ING Group's VR below that of its main operating company. Notching of ING Group's VR could be a result of significant addition of double leverage in the group.

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