On 15 May, we upgraded CMB International Capital Corporation Limited 's (CMB International) long-term issuer rating to A3 from Baa1.

CMB International's A3 long-term issuer rating incorporates its standalone assessment of Ba1; a two-notch uplift based on our assumption of a very high level of support from its parent, China Merchants Bank Co., Ltd. (CMB, A2 stable, baa2)¹; and a two-notch uplift based on our assumption of a high level of indirect support from the Government of China (A1 stable) via its parent.

CMB International's Ba1 standalone assessment reflects niche franchise in providing offshore financial services to onshore clients, its good profitability but high earnings volatility, and low leverage. These strengths are partially offset by the company’s moderate liquidity and funding positions, which improved in the past two years, but is still constrained by its proprietary investments in unlisted equities and its remaining exposures to China’s property sector.

CMB International has strategic alliance and close integration with CMB. As a fully owned subsidiary of CMB, CMB International serves as CMB’s sole offshore integrated financial services platform.