S&P gives Oversea-Chinese notes BBB+

Standard & Poor's said it assigned its BBB+ long-term issue rating to the tier-2 notes that Oversea-Chinese Banking Corp. Ltd. (AA-/stable/A-1+; axAAA/axA-1+) will issue as part of its existing $10 billion medium-term notes program.

The agency rates these basel III-compliant Tier-2 notes two notches below Oversea-Chinese's standalone credit profile of a. This is because the notes have a risk of subordination and a contingency clause. The clause requires the bank to write off the notes (in whole or in part) if a non-viability trigger is activated, the agency said.

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