Bank of China Ltd.'s Proposed Offshore Preference Shares Rated 'BB+'

HONG KONG (S&P Global Ratings) Feb. 24, 2020--S&P Global Ratings today said it has assigned its 'BB+' issue rating to the proposed noncumulative perpetual offshore preference shares of Bank of China Ltd. (BOC; A/Stable/A-1). The issue rating is subject to our review of the final issuance documentation. We have classified the instruments as having intermediate equity content. The offshore issue is the last part of BOC's existing plan to raise up to Chinese renminbi (RMB) 120 billion in preference shares, with no more than RMB20 billion or equivalent in foreign currencies. The Basel III-compliant issue qualifies as regulatory Additional Tier-1 capital, and will be treated equally with existing Additional Tier-1 instruments, according to guidelines issued by the China Banking and

...February 23, 2020 HONG KONG (S&P Global Ratings) Feb. 24, 2020--S&P Global Ratings today said it has assigned its '##+' issue rating to the proposed noncumulative perpetual offshore preference shares of Bank of China Ltd. (BOC; A/Stable/A-1). The issue rating is subject to our review of the final issuance documentation. We have classified the instruments as having intermediate equity content. The offshore issue is the last part of BOC's existing plan to raise up to Chinese renminbi (RMB) 120 billion in preference shares, with no more than RMB20 billion or equivalent in foreign currencies. The Basel III-compliant issue qualifies as regulatory Additional Tier-1 capital, and will be treated equally with existing Additional Tier-1 instruments, according to guidelines issued by the China Banking and Insurance Regulatory Commission in December 2019. In assigning the rating, we have taken into account issue-level risks determined in part by the issuer's regulatory environment, including provisions...

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