Fitch rates Bank of China shares BB+

Fitch Ratings said it assigned an expected rating of BB+ to Bank of China Ltd.'s proposed dollar- and/or euro-denominated, non-cumulative, perpetual offshore preference shares. “We expect the proposed preference shares to qualify as additional tier 1 (AT1) capital, and for the proceeds to be used to replenish BOC's AT1 capital and increase its capital adequacy ratio,” said Fitch in a press release. Fitch rates the Bank of China at A with a stable outlook.

The BB+ rating reflects the risk of loss and Fitch’s cap of BB+ for issuers with support ratings floors in the A or BBB category.

The proposed preference shares have lower recovery expectations than for higher ranking securities due to their deep subordination status and compulsory conversion features. The proposed preference shares will be converted into equity upon the occurrence of a trigger event.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.