S&P Global Ratings has given a BBB+ long-term issue rating to Oversea-Chinese Banking's (SGX:O39) Tier-2 subordinated notes due 2036, according to a recent release.
The notes' rating is two notches below the bank's "a" standalone credit profile, due to subordination risk and a nonviability clause pointing to a writeofff in case of a loss-absorption trigger event, S&P said.
The bank plans to use the notes as Tier-2 regulatory capital, with holders to rank junior to all depositors and senior creditors and senior to all additional Tier-2 bondholders.
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