Fitch rates Shanghai Commercial Bank notes BBB+

Fitch Ratings said it assigned Shanghai Commercial Bank Ltd.'s (SCB; A-/stable) proposed Basel III-compliant Tier-2 subordinated notes an expected BBB+(EXP) rating.

The dollar-denominated notes will mature after 10 years, and will be callable by SCB after five years. They will qualify as Tier-2 capital as their terms include a point of non-viability that the authorities may trigger at their discretion. In addition, the Hong Kong resolution authorities can, through its statutory powers, override the notes' contractual terms if it considers it necessary to restore the bank's viability

Proceeds will be used by the bank to strengthen its capital base and to fund business growth.

The notes represent direct, unsecured and subordinated obligations of Shanghai Commercial Bank.

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