Moody's rates Public Bank hybrid basket B

Moody's Investors Service said it assigned to "basket B" the dollar-denominated hybrid tier 1 securities, callable with a step-up feature in 2016, of Public Bank Bhd. (C/A3/prime-1), along with a Baa2 rating to the securities in May 2006 when terms were originally disclosed.

The outlook is stable.

The basket B treatment reflects the structure of the issue, while the Baa2 rating also takes into account Public Bank's above-average financial fundamentals, Moody's said.

The two-notch rating differential between Public Bank's A3 long-term deposits and this particular issue primarily reflect the ranking of the securities in liquidation after subordinated debt, but before ordinary shares and the bank's financial fundamentals, the agency said. The bank's deposit ratings reflect its healthy underlying financial strength and significant market position, Moody's added.

© 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.