S&P rates Bank of China notes BBB

S&P said it assigned its BBB long-term issue rating to a proposed issuance of non-cumulative subordinated additional tier 1 capital securities by Bank of China (Hong Kong) Ltd. (A+/stable/A-1).

The agency also assigned its BBB long-term credit rating to the junior subordinated tranche of the medium-term note program from which the proposed AT1 issuance will be drawn down.

“The issuance of these hybrid capital securities further reinforces our view that BOCHK's capital position will stay strong over the next 12-24 months,” S&P said in a news release.

“Our view of these notes as having intermediate equity content is based on several factors. In particular, we view the discretionary and non-cumulative features on dividends as having capacity to absorb losses on a going-concern basis.”

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