Moody’s gives OCBC notes Baa1(hyb)

Moody's Investors Service said it assigned a Baa1(hyb) rating to Oversea-Chinese Banking Corp. Ltd.'s (OCBC) planned Singapore dollar-denominated perpetual capital securities.

The notes will be issued under the company’s $30 billion global medium-term note program and will be listed on the Singapore Exchange.

The agency said the rating is positioned three notches below the a1 adjusted baseline credit assessment of the company, in line with Moody's standard notching guidance for contractual non-viability preferred securities with optional non-cumulative distribution-skip mechanism.

The three-notch difference from the adjusted baseline credit assessment reflects the higher expected loss in the securities and the impairment associated with discretionary coupon suspension, Moody’s said.

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