Fitch Ratings has given a BB(EXP) expected rating to Nomura Holdings' (TYO:8604) upcoming US dollar perpetual subordinated debt securities, according to a Monday release.

The instruments are considered additional tier one (AT1) securities, Fitch said.

The AT1 securities' rating is four notches lower than the Japan-based issuer's "bbb+" viability rating, which is the baseline anchor rating for these securities types.

Loss severity accounts for two notches while nonperformance risk explains the other two, Fitch said.

The rating also considers the absence of additional features impacting nonperformance risk or unusually thin capital cushion or distributable reserves, the rating agency said.

Changes in the financial company's viability rating would prompt similar actions on the notes.