...June 19, 2024 HONG KONG (S&P Global Ratings) June 19, 2024--S&P Global Ratings today assigned its '###-' long-term issue rating to the Basel III Tier-2 subordinated notes the Bank of East Asia Ltd. (The) (BEA; A-/Stable/A-2) proposes to issue. The notes will be drawn down from the Hong Kong-based bank's US$6 billion medium-term notes program. BEA intends to use the proceeds for general corporate purposes. The issue rating is subject to our review of the final issuance documentation. Our '###-' issue rating on the issuances is two notches lower than our assessment of BEA's stand-alone credit profile (SACP) of '###+'. The notching reflects the risks of subordination, and of write-down and waiver of principal and interest payments in the event of nonviability. The notes will incorporate a nonviability loss-absorbing feature. Under this, BEA must write off the notes when: (1) the Hong Kong Monetary Authority (HKMA) notifies the bank that it would become nonviable without such a write-off or...
