Fitch Ratings has placed the 'AA-' Long-Term Issuer Default Ratings (IDRs) of
Fitch has also affirmed the two banks' Short-Term IDRs at 'F1+' and Support Ratings at '1'.
The rating actions follow the placement of the 'AA-' Long-Term IDR and 'aa-' Viability Rating of their
KEY RATING DRIVERS
IDRS AND SUPPORT RATING
WHB's IDRs and Support Rating reflect Fitch's view of OCBC's high ability and propensity to provide extraordinary support to WHB if needed. Fitch equalises WHB's Long-Term IDR with that of OCBC due to WHB's key and integral role in
Fitch believes both WHB and BWH have become increasingly important to OCBC as
The two subsidiaries with the Wing Hang brand have a long presence in the two Special Administrative Regions of
RATING SENSITIVITIES
IDRS AND SUPPORT RATING
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Positive rating action on the IDRs is unlikely given the RWN placed on WHB and BWH and its parent OCBC.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
We will resolve the RWN upon the resolution of the RWN on parent OCBC, which is expected in the next six months. Any negative rating action on OCBC's IDRs and VR will lead to downgrade of WHB's and BWH's IDRs.
A downgrade could also result if Fitch believes that the parent's propensity to support the two subsidiaries has diminished because of strategic considerations, and it may affect the Support Rating if the change in propensity is significant. However, Fitch does not consider this to be likely in the medium term.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
OCBC Wing Hang Bank Limited LT IDR AA- Rating Watch On AA-
ST IDR F1+ Affirmed F1+
LC LT IDR AA- Rating Watch On AA-
Support 1 Affirmed 1
Banco OCBC Weng Hang, S.A. LT IDR AA- Rating Watch On AA-
ST IDR F1+ Affirmed F1+
Support 1 Affirmed 1
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
(C) 2020 Electronic News Publishing, source