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Fitch Rates Dah Sing Bank's Subordinated Notes 'BBB-(EXP)'

Fitch Ratings has assigned Hong Kong-based Dah Sing Bank, Limited's (DSB; BBB+/Stable/bbb+) proposed Basel III-compliant Tier 2 subordinated notes an expected rating of 'BBB-(EXP)'.

The notes will be issued under DSB's USD2 billion euro medium-term note programme. The notes will mature in 10 years and will be callable by DSB after five years and semi-annually thereafter. They will qualify as Tier 2 capital as their terms include a point of non-viability that the authorities may trigger at their discretion. In addition, the Hong Kong resolution authorities can, through their statutory powers, override the notes' contractual terms if they consider it necessary to restore the bank's viability.

The bank will use the proceeds from the new issuance to replace existing obligations that will become callable in November 2021.