Fitch rates St. George Bank issue A-

Fitch Ratings said it assigned a long-term rating of A- to the A$300 million (with allowance for up to $100m oversubscriptions) converting preference shares series II (CPS II) issue undertaken by St.George Bank Ltd. (St.George, long-term issuer default rating A+ with stable outlook). The issue replaces $250 million of depository capital securities that were redeemed in June 2007.

The rating takes into account the subordinated nature of the issue, as well as a rather narrow distributable profits test (distributions may only be made from current year's profits), Fitch said. The issue is eligible to be included by St.George as non-innovative tier 1 capital for regulatory capital purposes, the agency said.

© 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.