Fitch rates Dah Sing Bank notes BBB-

Fitch Ratings said it assigned Dah Sing Bank, Ltd.’s planned Basel III-compliant tier 2 subordinated notes an expected BBB- rating. The 10-year notes will be issued under DSB's $2 billion euro medium-term note program. and will be callable by DSB after five years and semi-annually thereafter.

“They will qualify as tier 2 capital as their terms include a point of non-viability that the authorities may trigger at their discretion. In addition, the Hong Kong resolution authorities can, through their statutory powers, override the notes' contractual terms if they consider it necessary to restore the bank's viability,” Fitch said in a press release.

The bank will use the proceeds to replace obligations that become callable next month.

The outlook is stable.

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