Moody's rates United Overseas Bank notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to United Overseas Bank Ltd.'s proposed subordinated notes of S$750 million callable in 2016.

The outlook is stable.

The bank also has long-term and short-term deposits ratings of Aa1 and prime-1, respectively, long-term senior unsecured debt rating of Aa1, junior subordinated debt rating of A1(hyb) and a preference shares rating of A3(hyb).

The proposed notes will be issued pursuant to the bank's S$5 billion euro medium-term note program.

The notes represent direct, unsecured, subordinated obligations of the bank. As such, they are rated at Aa2, which is one notch below the bank's senior obligation at Aa1.

The notes are intended to qualify as lower tier II capital securities and to rank senior to all common shareholders, tier I capital securities and upper tier II capital securities of the bank, Moody's said.

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