Moody's rates Dah Sing notes Baa2

Moody's Investors Service has assigned a Baa2 rating to Dah Sing Bank's U.S. dollar subordinated note issue due 2017.

The outlook is stable.

Moody's said the Baa2 rating reflects the subordinated status of the notes and Dah's strong management track record and focused strategy. Furthermore, the rating incorporates Moody's expectation that the bank will continue to perform well, despite its position as a smaller player in a crowded market.

Although the notes will increase the bank's capital base, Moody's said it also expects its parent Dah Sing Banking Group, to inject additional equity capital into Dah to increase its tier I core capital. Without any capital injection, the bank's tier I core capital - following the acquisitions - would fall to a level that could limit further business expansion, organic or involving acquisitions, and possibly exert pressure on its stable rating outlook.

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