S&P: China Merchants preference shares BB-

S&P said it assigned its BB- foreign currency long-term issue rating to a proposed issuance of additional tier-1 non-cumulative offshore preference shares by China Merchants Bank Co. Ltd. (BBB+/stable/A-2).

The rating on the notes is four notches below the bbb stand-alone credit profile.

The agency said the notching considers one notch for subordination risks, two notches for probability of coupon nonpayment, which could occur before the bank reaches the point of non-viability and one notch for the risk of full or partial mandatory H share conversion upon a trigger event.

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