Moody’s gives Baa2(hyb) to Maybank notes

Moody's Investors Service said it assigned its Baa2(hyb) subordinated foreign-currency debt rating to the notes to be issued by Malayan Banking Bhd. (Maybank, A3 stable, a3).

The proposed subordinated notes will be issued under Maybank's newly updated $15 billion multicurrency medium-term note program.

The proposed subordinated notes are expected to be of benchmark size, denominated in dollars, and mature in 10˝ years. The notes carry a one-time issuer call option at par in 5˝ years, subject to redemption conditions which include the prior written approval of Bank Negara Malaysia (BNM).

The notes are subordinated obligations with full or partial write-off feature at the point of non-viability, as defined by BNM.

Moody’s said the debt rating assigned to Maybank's subordinated notes is positioned two notches below the bank's a3 adjusted baseline credit assessment (adjusted BCA), in line with the agency’s standard notching guidance for subordinated debt with loss triggered at the point of non-viability on a contractual basis.

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