Moody’s rates DBS Group notes A3 (hyb)

Moody's Investors Service said it assigned A3 (hyb) rating to DBS Group Holdings Ltd.'s dollar-denominated noncumulative nonconvertible perpetual capital securities.

The securities are issued under DBS Group's $30 billion global medium-term note program.

The terms and conditions of the capital securities incorporate non-viability language that is compliant with Basel III rules as well as rules set by the Monetary Authority of Singapore (MAS), thereby allowing the securities to be considered as additional tier 1 capital, under MAS' Notice 637.

The rating is positioned three notches below DBS Bank Ltd.’s adjusted baseline credit assessment (deposits Aa1 negative, BCA aa3), in line with Moody's standard notching guidance for contractual non-viability preferred securities with optional, noncumulative distribution-skip mechanism.

The rating is notched off the BCA of DBS Bank, because a non-viability event for DBS Group would most likely be triggered by or be concurrent with a non-viability event at the bank, Moody’s said.

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