TOKYO (Standard&Poor's) March 25, 2014--Standard&Poor's Ratings Services today said that it has assigned its 'BBB+' issue rating to the proposed 10-year subordinated bonds to be issued by Sumitomo Mitsui Financial Group Inc. (SMFG; A/Negative/A-1), a Japan-based bank holding company. The rating is subject to our review of the bonds' final documentation. This will be the first issuance of subordinated bonds with a write-down clause by SMFG. We understand that the proposed bonds will be compliant with Tier 2 capital under Basel III. The interest payments of the proposed bonds are nondeferrable. They carry a write-down clause that allows the following upon the occurrence of a nonviability event: the full principal amount will be permanently written down
