The proceeds will be used for general corporate purposes.
KEY RATING DRIVERS
The senior notes are rated at the same level as UOBT's National Long-Term Rating of 'AAA(tha)' as they represent unsecured and unsubordinated obligations of the company.
The National Ratings of UOBT reflect Fitch's belief of an extremely high probability of extraordinary support, if required, from its parent United Overseas Bank Limited (UOB; AA-/Stable). Fitch considers UOBT to be strategically important to UOB due to the near-full 99.7% ownership, name- and brand-sharing, high level of integration, and past history of ordinary financial support.
RATING SENSITIVITIES
The National Long-Term Rating for UOBT is already at the highest end of the national scale, and hence there is no upside. A material change in UOB's ability and/or propensity to support UOBT may have a negative impact on UOBT's rating, though Fitch does not expect such shifts to occur in the short term.
The other ratings of UOBT are unaffected by this action, and are as follows:
- Long-Term Foreign Currency IDR at 'A-'; Outlook Stable
- Short-Term Foreign Currency IDR at 'F2'
- Viability Rating at 'bb+'
- Support Rating at '1'
- National Long-Term Rating at 'AAA(tha)'; Outlook Stable
- National Short-term Rating at 'F1+(tha)'