(The following statement was released by the rating agency)
SINGAPORE, March 18 (Fitch) Fitch Ratings has assigned
Overseas Bank Limited's (UOB) USD800m 3.75% Basel III-compliant
Tier 2 capital
securities due 2024 a final rating of 'A+'. The securities are
the first Basel
III-compliant Tier 2 capital instruments to be issued by a
This follows the completion of the securities issue and receipt
documentation conforming to information already received. The
final rating is
the same as the expected rating assigned on 11 March 2014.
KEY RATING DRIVERS
The Basel III-compliant Tier 2 securities are rated one notch
below UOB's 'aa-'
Viability Rating (VR) to reflect their higher loss-severity risk
senior unsecured instruments due to their subordinated status,
the presence of a
non-viability clause and the partial rather than mandatory full
The Monetary Authority of Singapore (MAS) has sole discretion in
UOB is non-viable, and if it does so, the securities may be
written down in full
or in part to the extent that MAS considers necessary to restore
of the bank. There are no write-back features on the securities.
No additional notching has been ascribed to non-performance
risk, despite the
presence of non-viability terms, which Fitch regards to be of a
incremental risk relative to the VR assigned. The instruments
will not qualify
for equity credit under Fitch's criteria.
Holders of these securities - and other Tier 2 securities of UOB
- rank below
the bank's senior creditors, including depositors, but above the
shareholders, preference shareholders, and holders of perpetual
securities and existing Upper Tier 2 securities in priority of
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
OCBC & UOB at 'AA-'; Outlook Stable", dated 23 October 2013, and
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-'
Fitch Ratings Singapore Pte Ltd
6 Temasek Boulevard
#35-05 Suntec Tower Four
+65 6796 7230
+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 31
January 2014, and "Assessing and Rating Bank Subordinated and
Securities", dated 31 January 2014, are available at
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Assessing and Rating Bank Subordinated and Hybrid Securities
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.
DETAILS OF THIS
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH