Moody's rates Oversea-Chinese Banking notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to Oversea-Chinese Banking Corp. Ltd.'s proposed issuance of Singapore-dollar fixed-rate subordinated notes, due 2019, callable with step-up in 2014.

The outlook is stable.

The notes, which are intended to qualify for lower tier 2 capital treatment pursuant to the relevant regulations, represent direct, unsecured and subordinated obligations of the bank. As such, they are rated Aa2, one notch below the bank's senior obligations at Aa1, Moody's said.

The rating is subject to receipt of final documents.

The ratings derive from the bank's strong financial fundamentals, Moody's said, as well as its entrenched position in its home market of Singapore.

The ratings also incorporate a high probability of systemic support, if needed, given the bank's high national market share and importance to Singapore's financial system, the agency added.

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