Fitch rates Rizal hybrid B-

Fitch Ratings said it assigned an expected rating of B- to Philippines-based Rizal Commercial Banking Corp.'s planned hybrid issue of up to $100 million.

All the bank's other ratings were affirmed, including the long-term issuer default rating at BB-, individual rating at D/E and support rating at 3.

The outlook is stable.

The hybrid securities will rank junior to all deposits and other debt obligations including the bank's subordinated debt, pari passu with the most senior class of the bank's preference shares and other hybrid tier 1 capital instruments of the bank on a consolidated basis and senior to other classes of preference shares and ordinary share capital.

Fitch said any redemption will require prior written consent from the Philippines' central bank, which may insist upon the bank issuing new capital for funding the redemption of the above securities, if, in its opinion, such a redemption could potentially result in the bank's capital ratios declining below the regulatory minimum.

The rating for the issue reflects the risks of non-cumulative interest deferral and its junior legal status in the event of the bank's liquidation, Fitch added.

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