S&P gives Bank of China’s preferreds BB+

S&P said it assigned its BB+ issue rating to the proposed noncumulative perpetual offshore preference shares of Bank of China Ltd.

“We have classified the instruments as having intermediate equity content. The offshore issue is the last part of BOC's existing plan to raise up to Chinese renminbi (RMB) 120 billion in preference shares, with no more than RMB 20 billion or equivalent in foreign currencies,” said S&P in a press release.

The Basel III-compliant issue qualifies as regulatory additional tier-1 capital and will be treated equally with existing additional tier-1 instruments, according to guidelines issued by the China Banking and Insurance Regulatory Commission in December.

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