Moody's rates Cathay United Bank notes Baa1

Moody's Investors Service said it assigned a provisional rating of Baa1 to Cathay United Bank's new $500 million subordinated notes due 2020.

The outlook is stable.

Moody's said the prospective Baa1 rating reflects the subordinated status of the notes, relative to the A3 rated claims of depositors and senior creditors of the bank in the event of a bank reorganization or liquidation. This distinction in priority of claim is reflected in the one notch rating differential.

Cathay United Bank's ratings are underpinned by its solid financials and the expected regulatory support characteristically available to financial institutions in Taiwan. The bank's franchise is considerable but still evolving, as is its organizational structure, the agency said.

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