...MELBOURNE (Standard & Poor's) May 14, 2015--Standard & Poor's Ratings Services today assigned its '##+' issue credit rating to Bank of Queensland's (BoQ; A-/Stable/A-2) proposed capital notes issue. To arrive at the rating on the capital notes, Standard & Poor's deducts four notches from BoQ's stand-alone credit profile (SACP) of 'a-'. The issue rating reflects the following factors: + We deduct one notch for the securities' subordinated status; + We deduct two notches for the risk of partial or untimely payment; and + We deduct one notch for a contingency clause requiring mandatory conversion into common equity on activation of a nonviability trigger. We have assessed the proposed issue as having "intermediate" equity content, under our ratings criteria. This reflects our view that the capital notes would be able to absorb losses, if needed, on a "going concern basis" through non-payment of coupons, principal write-down, or conversion into common equity. Our opinion takes into account...
