Moody’s assigns Bank of China notes Baa3

Moody's Investors Service said it assigned a Baa3 (hyb) rating to the proposed Basel III-compliant Tier 2 capital subordinated notes to be issued by Bank of China Ltd.

The notes will be issued pursuant to the bank’s $10 billion equivalent medium-term note program. They are subject to full principal write-down at the point of non-viability (PONV) on a contractual basis.

The rating on the notes is one notch below Bank of China’s baa2 adjusted baseline credit assessment (adjusted baseline credit assessment), which starts with the bank's baseline credit assessment and adds parental support, if any. The bank’s adjusted baseline credit assessment is the same as its baseline credit assessment.

The outlook is stable.

"The Baa3 (hyb) rating is one notch below BOC's baa2 adjusted BCA, reflecting the structure of the proposed issuance and our assumption that investors in these securities face the risk of full principal write-down at the PONV," Moody's vice president and senior credit officer Christine Kuo said in a news release.

© 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.