Moody's might lower Oversea-Chinese

Moody's Investors Service said it placed the long-term debt, deposit and standalone ratings of Oversea-Chinese Banking Corp. Ltd. on review for downgrade.

The action follows Oversea-Chinese's April 1 announcement that it has made a general offer to acquire 100% of Wing Hang Bank's shares.

The main reason for the review is the execution risk associated with the financing of such a large acquisition. Moody's understands that Oversea-Chinese plans to finance the transaction through a combination of debt and equity. The success of the new capital raising is important for Oversea-Chinese if it is to maintain capitalization on par with similarly rated peers, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.