Fitch: Maybank notes BBB+

Fitch Ratings said it assigned a final rating of BBB+ rating to Malayan Banking Bhd.'s (Maybank) $800 million 3¼% fixed-rate subordinated notes due 2022 issued under the bank's $5 billion multi-currency medium-term note program.

This follows the completion of the notes issue, as well as the receipt of final documents conforming to information previously received.

The final rating is same as the expected rating assigned Sept. 13, Fitch said.

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

The notes are rated one notch below Maybank's viability rating to reflect their subordinated status and the absence of any going-concern loss-absorption mechanism, Fitch said.

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

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

The proceeds will be used for general corporate purposes and to augment the bank's tier 2 capital, the agency added.

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