KUALA LUMPUR: Standard & Poo's Ratings Services has assigned a 'BBB+' rating to MALAYAN BANKING BHD []'s proposed lower Tier-2 subordinated notes under the medium-term notes (MTN).
In a statement Tuesday, April 19, the rating agency said the proposed notes were callable in 2016 and would initially bear a fixed interest rate.
If they are not called, the interest will be reset at a fixed rate based on the five-year swap offer rate plus initial spread, it said.
The notes constitute direct, unconditional and subordinated obligations of Maybank. The notes will rank senior to all share capital of Maybank, Tier-1 capital securities, and upper Tier-2 capital securities.
The notes will rant pari passu with all other lower Tier-2 capital subordinated debt issued by Maybank.
'The differential between the rating on the proposed notes and the 'A-' counterparty credit rating on Maybank reflects the subordinated nature of the notes.
'The notes have no interest deferral feature,' said S&P.
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In a statement Tuesday, April 19, the rating agency said the proposed notes were callable in 2016 and would initially bear a fixed interest rate.
If they are not called, the interest will be reset at a fixed rate based on the five-year swap offer rate plus initial spread, it said.
The notes constitute direct, unconditional and subordinated obligations of Maybank. The notes will rank senior to all share capital of Maybank, Tier-1 capital securities, and upper Tier-2 capital securities.
The notes will rant pari passu with all other lower Tier-2 capital subordinated debt issued by Maybank.
'The differential between the rating on the proposed notes and the 'A-' counterparty credit rating on Maybank reflects the subordinated nature of the notes.
'The notes have no interest deferral feature,' said S&P.
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