Article: Fitch assigns lower rating on Union Bank's new debt papers

FITCH Ratings Inc. said it assigned an "A(phl)" national long-term rating to Union Bank of the Philippines' proposed debt-paper sale.

In a statement, the credit rating agency said Union Bank's subordinated notes due 2019 are callable with a step-up in 2014 of up to P5 billion.

The rating on the proposed debt papers, which are meant to qualify for Lower Tier-2 Capital under Bangko Sentral ng Pilipinas (BSP) guidelines, is one notch below Union Bank's national long-term rating of "A+(phl)."

Fitch said this is in accordance with the agency's criteria of rating subordinated debt instruments of financial institutions.

Union Bank's Sub Notes will be ...

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