S&P rates Sumitomo Mitsui bonds A

Standard & Poor's said it assigned an A debt rating to the dated subordinated bonds issued by Sumitomo Mitsui Banking Corp. The 750 million euro-denominated bonds, due on Nov. 9, 2020, carry a coupon rate of 4%.

The rating is one notch lower than the issuer credit rating on the company, reflecting the subordinated status of the bonds, the agency said.

The ratings reflect its consolidated financial profile, as well as the consolidated financial profile and market position of its parent company, Sumitomo Mitsui Financial Group Inc., S&P said.

This is because the businesses of Sumitomo Mitsui Banking and other group companies are highly related, the agency said, and the holding company retains the ability to reorganize the entity and to reallocate capital within the group.

The ratings also benefit from a one-notch uplift from the stand-alone rating on the bank, which excludes a government support factor in times of crisis, S&P added.

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