Moody's rates DBS Bank preferreds A3

Moody's Investors Service said it assigned an A3 rating to the proposed preference shares of up to S$800 million to be issued by DBS Bank Ltd.

The bank also has Aa1/prime-1 ratings on its long-term/short-term deposits, Aa1/prime-1 ratings on its long-term/short-term senior unsecured debts, Aa2 rating on its regular subordinated debt, A1 rating on its junior subordinated debt, and A3 rating on the preference shares issued by its subsidiaries.

The outlook is stable.

The shares will be non-cumulative, fixed-rate, and perpetual, but callable without step-up in 2020.

The proceeds are intended primarily for the bank to exercise, upon attaining the required regulatory approval, the bank's call options on certain of its outstanding tier 1 instruments, which are callable in 2011.

The rating incorporates both the structure of the proposed issue and DBS' strong intrinsic financial strength; Moody's said.

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