S&P rates Oversea-Chinese notes BBB+

Standard & Poor’s said it assigned a BBB+ long-term issue rating to tier-2 subordinated notes that Oversea-Chinese Banking Corp. Ltd. may issue as part of its existing $10 billion medium-term notes program.

The agency said it rated these Basel III-compliant tier-2 notes two notches below the bank’s stand-alone credit profile of A.

This is because the notes have a risk of subordination and a contingency clause, the agency said.

The clause requires the bank to write off the notes if a non-viability trigger is activated, S&P said.

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