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OCBC-Wing Hang deal draws mixed reactions

S&P affirms bank's rating, Moody's sees possible downgrade

Published Wed, Apr 2, 2014 · 10:00 PM

OCBC Bank's HK$38.4 billion (S$6.23 billion) purchase of Wing Hang Bank seems to have drawn mixed reviews from rating agencies and analysts, citing dilution to shareholders.

Analysts are expecting a rights issue, with estimates ranging from $2 billion to $5 billion to repair the bank's capital following the purchase.

But investors seemed more positive, pushing the stock to close up four cents at $9.60 yesterday. This followed a gain of five cents on Tuesday after OCBC unveiled the deal.

Moody's Investors Service said yesterday that it had placed the long-term debt, deposit and standalone ratings of OCBC on review for…

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