Moody's rates United Overseas Bank shares Aa3

Moody's Investors Service said it assigned an Aa3 rating to United Overseas Bank Ltd.'s proposed issuance of up to S$1.5 billion in class E non-cumulative, non-convertible preference shares. The rating is contingent upon the receipt of final documents.

The outlook is stable.

The rating reflects both the structure of the proposed issuance and the bank's above-average financial strength, Moody's said.

The bank's long-term deposit ratings are Aa1, reflecting its well-established domestic franchise and sound financial fundamentals, as demonstrated in its bank financial strength rating of B, the agency said.

The bank's ratings incorporate a very high probability of systemic support given its high national market share and relative importance to Singapore's banking system, Moody's said.

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