KUALA LUMPUR: Fitch Ratings assigned an expected rating
of 'BBB+(EXP)' to Malayan Banking Bhd's proposed US dollar-denominated
subordinated notes.
It said on Thursday the notes
would be issued under Maybank's US$5bil multicurrency medium-term note
programme. The final rating is subject to the receipt of final documentation
conforming to information already received.
"The notes are rated one
notch below Maybank's 'a-' Viability Rating to reflect their subordinated
status and the absence of any going-concern loss-absorption mechanism. This is
in accordance with Fitch's criteria on rating bank regulatory capital and
similar securities," it said.
Fitch said the subordinated notes
will represent direct, subordinated and unsecured obligations of Maybank, and
will rank equally with the bank's other Lower Tier 2 capital securities.
The ratings agency said the
subordinated notes will rank below claims by Maybank's depositors and senior
creditors, but will rank senior to holders of the bank's share capital and Tier
1 capital securities.
Fitch said the proceeds would be
used for Maybank's general corporate purposes and to augment its Tier 2
capital. The notes were expected to qualify as Lower Tier 2 capital as per the
Bank Negara Malaysia's guidelines and be eligible for Basel III transitional
treatment.
Meanwhile, Standard & Poor's
Ratings Services assigned its 'BBB+' long-term issue rating to Maybank's lower
Tier-2 subordinated notes under the US$5 billion multicurrency medium-term
notes.
"The one-notch difference
between the issue rating and the issuer credit rating reflects the subordinated
but interest-non-deferral nature of the notes," said S&P.
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment