Fitch: DBS Group notes BBB

Fitch Ratings said it assigned an expected rating of BBB to DBS Group Holdings Ltd.'s proposed dollar-denominated perpetual capital securities.

The securities are to be issued under the company's $30 billion global medium-term note program.

The securities are rated five notches below the company’s AA- viability rating with two notches for loss severity and three notches for non-performance risk, Fitch said.

The loss-severity risk is high in view of the securities’ deep subordination status, the agency said.

The holders of these securities, along with the company’s other tier 1 capital securities, will rank ahead of claims from DBS Holdings' ordinary shareholders and holders of any other class of DBS Holdings’ share capital and any instrument or security that is expressed to rank junior to the securities, Fitch said. The securities will rank below all senior creditors and holders of subordinated notes of the company, the agency added.

The rating on the securities is sensitive to changes in DBS's viability rating, Fitch said.

The company also has long-term issuer default rating of AA- and short-term issuer default rating of F1+.

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