(The following statement was released by the rating agency)
SINGAPORE, July 22 (Fitch) Fitch Ratings has assigned
Overseas Bank Limited's (UOB) SGD850m 4.9% non-cumulative
perpetual capital securities a final rating of 'BBB'. This
completion of the securities issue, as well as the receipt of
conforming to information previously received. The final rating
is same as the
expected rating assigned on 15 July 2013.
Key Rating Drivers
The securities are rated five notches below UOB's 'aa-'
Viability Rating (VR),
comprising two notches for loss severity and three notches for
risk, in accordance with Fitch's criteria.
The loss-severity risk is high in view of the securities' deep
status. The securities - together with other Tier 1 capital
securities - rank
senior in priority of claims only to UOB's ordinary
shareholders, and rank below
all senior creditors (including depositors) and holders of
and Upper Tier 2 capital securities of the bank.
Non-performance risk arises from the fact that UOB and the
Monetary Authority of
Singapore have unrestricted discretion in cancelling any
on the proposed securities. Absent of any cancellation,
distribution is to be
made semi-annually at a fixed rate, based on the prevailing
A change in UOB's VR will have an impact on the securities
For more details on UOB's ratings and credit profile, see "Fitch
Singapore's DBS, OCBC and UOB; Outlook Stable", dated 17 April
2013, and UOB's
full rating report, dated 29 April 2013, available at
UOB's other ratings are as follows:
- Long-Term Issuer Default Rating 'AA-'; Outlook Stable
- Short-Term Issuer Default Rating 'F1+'
- Viability Rating 'aa-'
- Support Rating '1'
- Support Rating Floor 'A-'
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+65 6796 7218
+65 6796 7229
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available at www.fitchratings.com.
Applicable criteria, "Global Financial Institutions Rating
Criteria", dated 15
August 2012, and "Assessing and Rating Bank Subordinated and
dated 5 December 2012, are available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Assessing and Rating Bank Subordinated and Hybrid Securities
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