Fitch: Maybank notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to Malayan Banking Bhd.'s (Maybank) proposed dollar-denominated subordinated notes.

The notes will be issued under Maybank's $5 billion multi-currency medium-term note program.

The notes are rated one notch below Maybank's A- viability rating to reflect their subordinated status and the absence of any going-concern loss-absorption mechanism, Fitch said. This is in accordance with the agency's criteria on rating bank regulatory capital and similar securities.

The bank also has a long-term foreign-currency issuer default rating of A- and long-term local-currency issuer default rating of A-.

The outlook is stable.

The subordinated notes will represent direct, subordinated and unsecured obligations of Maybank, Fitch said, and will rank equally with the bank's other lower tier 2 capital securities.

The subordinated notes will rank below claims by Maybank's depositors and senior creditors, but will rank senior to holders of the bank's share capital and tier 1 capital securities, the agency said.

The proceeds will be used for Maybank's general corporate purposes and to augment its tier 2 capital, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.