Moody’s rates Nanyang Commercial Bank hybrids Baa3

Moody’s Investors Service said it gave a Baa3(hyb) rating to Nanyang Commercial Bank, Ltd.’s planned dollar-denominated subordinated notes with point of non-viability loss absorption features qualifying them as tier 2 capital. The notes will have a maturity of 10 years and are callable after five years.

“The assigned Baa3(hyb) rating reflects: (1) Nanyang Commercial Bank’s adjusted baseline credit assessment (BCA) of baa2, (2) Moody’s advanced loss given failure (LGF) analysis, resulting in a one notch negative adjustment from the bank’s adjusted BCA and (3) Moody’s assumption of a low probability of government support for loss-absorbing instruments; resulting in no uplift,” said Moody’s in a press release.

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