Fitch: Wing Hang Bank on positive watch

Fitch Ratings said it placed Wing Hang Bank Ltd.'s long-term issuer default rating of A- and short-term issuer default rating of F2 on Rating Watch positive.

The agency also said it affirmed the bank's viability rating of A- and its perpetual junior subordinated notes at BBB-.

The positive watch follows news that Oversea-Chinese Banking Corp. seeks to acquire a majority stake of up to 100% in Wing Hang Bank, Fitch said.

If successful, the agency said it expects that such ownership would result in an extremely high likelihood of extraordinary support from Oversea-Chinese Banking for Wing Hang Bank.

Wing Hang Bank will become a strategically important subsidiary of Oversea-Chinese Banking if the deal is completed, Fitch said.

The proposed acquisition is driven by Oversea-Chinese Banking's aspiration to accelerate expansion in Hong Kong and the rest of Greater China, the agency said.

Wing Hang Bank's established franchise in Hong Kong, including 42 branches, will supplement Oversea-Chinese's presence in the city, which is currently limited to wholesale lending through its single branch, Fitch said.

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