Moody's rates OCBC securities Baa1

Moody's Investors Service said it assigned a preliminary Baa1 long-term rating to the perpetual capital securities component of the updated global medium-term note program of Oversea-Chinese Banking Corp. Ltd. (OCBC).

Moody's said it previously assigned a provisional Aa1 rating to the senior unsecured component, a provisional A3 rating to the subordinated component and a provisional prime-1 rating to the short-term component of the guaranteed medium-term notes program.

As part of a recent update, OCBC increased the size of its program to $30 billion from $10 billion.

The ratings assigned to the program are not affected by the increase in program size, the agency said.

The provisional rating is positioned three notches below the A1 adjusted baseline credit assessment of OCBC, in line with Moody's standard notching guidance, the agency explained.

The three-notch difference from the adjusted baseline credit assessment reflects the higher expected loss in these securities and the impairment associated with discretionary coupon suspension, Moody's said.

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