Fitch Expects to Rate Citizens Fin Group's $250MM Ser A Non-Cumulative Perpetual Pfd Stock 'BB-'

Fitch Ratings expects to assign a 'BB-' rating to Citizens Financial Group's (CFG) $250 million non-cumulative perpetual preferred issuance. The final size and pricing of the proposed issuance will be determined at the time of issuance.

Dividends will be payable at a fixed rate per annum from the original issue date to, but excluding, April 6, 2020 and thereafter at a floating rate per annum. The proceeds will be used to repurchase common stock directly from CFG's parent company, the RBS Group, or for general corporate purposes.

KEY RATING DRIVERS - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The hybrid instrument is rated five notches lower than CFG's viability rating of 'bbb+' in accordance with Fitch's criteria 'Global Bank Rating Criteria' dated March 20, 2015. 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.

RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

CFG's preferred issuances are sensitive to changes in CFG's VR, and would move in tandem with any changes to CFG's VR. For more information, please see CFG's most recent press release.

The following rating expects to be assigned.

Citizens Financial Group, Inc.

--Non-cumulative preferred at 'BB- (EXP)'.

Additional information is available at 'www.fitchratings.com.'

Applicable Criteria and Related Research:

--'Global Bank Rating Criteria' (March 20, 2015)

Applicable Criteria and Related Research:

Global Bank Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863501

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982270

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts:

Fitch Ratings
Primary Analyst
Jaymin Berg, CPA
+1-212-908-0368
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Secondary Analyst
Christopher Wolfe
Managing Director
+1-212-908-0771
or
Committee Chairperson
Justin Fuller
Senior Director
+1-312-368-2057
or
Media Relations
Alyssa Castelli, +1 212-908-0540
alyssa.castelli@fitchratings.com
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.