Moody's: Bank of East Asia unaffected by tap bond

Moody's Investors Service said that the A2 deposit ratings of Bank of East Asia, Ltd. remain unchanged following its March 13 announcement of a tap bond offering on its S$600 million 4.25% 2022 subordinated notes.

The outlook remains stable.

Moody's said the tap bond offering will be consolidated with the March 13 notes to form one series. The existing notes are rated A3, one notch below that of the bank's senior obligations.

The notes constitute direct, unsecured, and subordinated obligations of the bank and qualify as supplementary capital under existing regulatory capital rules in Hong Kong, the agency said.

"BEA's ratings reflect its sound asset quality and strong liquidity profile, and take into account its below-peer average profitability and the potential risks associated with its rapid expansion in mainland China," Moody's vice president and senior analyst Sonny Hsu said in a news release.

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