Fitch rates Shinhan Bank's notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to Shinhan Bank's proposed dollar-denominated subordinated unsecured notes.

Fitch said it expects the proposed notes will have a tenor of 10 years and the issue size to be up to $400 million.

The proceeds will be used to strengthen its Basel III tier 2 regulatory capital position and for lending to green or social projects, the agency said.

The proposed notes will be issued under Shinhan's $6 billion global medium-term note program, Fitch said.

The rating on the notes is two notches lower than the bank's long-term issuer default rating, which is driven by its viability rating of A.

This is to reflect the notes' poor recovery prospect relative to senior unsecured instruments due to their subordinated status with a full and permanent write-off feature, Fitch said.

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