Fitch rates Standard Chartered bond AA+(twn)

Fitch Ratings said it published the national long-term rating on Standard Chartered Bank (Taiwan) Ltd.’s upcoming $200 million subordinated unsecured bond at AA+(twn).

The bond carries a fixed coupon rate of 4½% and matures Dec. 18, 2024.

The proceeds, which qualify as Taiwanese Basel III tier 2 capital, will be used to refinance maturing debts and enhance the bank’s regulatory capital, Fitch said.

The bank also has a long-term issuer default rating of AA-, short-term issuer default rating of F1+, national long-term rating of AAA(twn), national short-term rating of F1+(twn), viability rating of BBB and senior unsecured debt national long-term rating of AAA(twn).

Fitch said it believes Taiwan’s authorities would only move a bank into insolvency administration when it reaches a very low capital level or a 2% capital adequacy ratio, reducing the recovery prospects for B3T2 notes.

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