Moody's assigns Rizal securities Ba3

Moody's Investors Service said it assigned a Ba3(hyb) rating to Rizal Commercial Banking Corp.'s proposed dollar-denominated, perpetual, non-cumulative and subordinated additional tier 1 capital securities.

“The Ba3(hyb) rating of the proposed AT1 issuance is three notches below the bank's baseline credit assessment and adjusted BCA of baa3, reflecting Moody's assessment of higher expected losses in light of (1) a mandatory and/or discretionary coupon suspension on a non-cumulative basis, (2) the contractual principal write-down feature and (3) the issuance's subordinated claim in liquidation,” Moody’s said in a press release.

The securities are perpetual, with a first call date in 2025. The securities rank senior only to ordinary shares and coupons can be canceled on a non-cumulative basis at the bank's discretion, Moody’s said.

“Coupon skip is mandatory if distributable profits are insufficient, applicable regulatory capital requirements are breached or at regulatory discretion. In the event of a coupon skip, dividends on common shares must also be stopped,” the agency said.

© 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.