Fitch: Shinhan Bank notes BBB+

Fitch Ratings said it assigned an expected BBB+ rating to Shinhan Bank's proposed dollar-denominated subordinated unsecured notes.

The agency said it expects the notes to have a tenor of 10 years and the issuance to be $350 million in size.

The proceeds will be used to strengthen its Basel III tier 2 regulatory capital position and for general corporate purposes, Fitch said.

The notes will be issued under the bank's $6 billion global medium-term note program, the agency said.

Fitch said it rates the Basel III-compliant tier 2 subordinated notes two notches lower than the bank's long-term issuer default rating, which is driven by its viability rating of A.

This reflects the high loss-severity of the notes relative to senior unsecured instruments due to their subordinated status, the agency explained.

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