S&P rates Oversea-Chinese Banking notes BBB-

Standard & Poor’s said it assigned a BBB- long-term issue rating and axA+ long-term Asean regional scale rating to the proposed issue of Singapore dollar-denominated tier-1 perpetual capital securities by Oversea-Chinese Banking Corp. Ltd.

The securities are rated four notches below the bank’s stand-alone credit profile of A, reflecting their risk of subordination, the bank’s full discretion to cancel any periodic dividend payments and a non-viability clause that requires the bank to permanently write down the securities, partly or fully, if a loss-absorption event occurs, S&P said.

The securities are intended to qualify as additional tier-1 capital for regulatory capital purposes, the agency said, and will rank junior to all depositors, senior creditors and holders of tier 2 capital securities.

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