Moody's rates Rizal perpetuals B3

Moody's Investors Service said it assigned a B3 rating to Philippines-based Rizal Commercial Bank Corp.'s proposed issuance of dollar-denominated perpetual securities, callable after ten years with a step-up feature in 2016.

The outlook is negative, in line with the outlook on the Philippines' sovereign ratings.

The rating reflects the structure of the issuance and Rizal's moderate financial fundamentals, the agency said. The interest payments on Rizal's capital notes are noncumulative, if deferred. If implemented, such provisions, while not legally constituting a default event, could result in payment terms appreciably different from those of senior securities. Additionally, the securities will be ranked after subordinated debt in liquidation, but before common shares.

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