On 7 December 2023, we affirmed Industrial & Comm'l Bank of China (Macau) Ltd 's (ICBC Macau) A2 long-term deposit ratings and baa1 Adjusted Baseline Credit Assessment (BCA), but downgraded its BCA to ba1 from baa3.

ICBC Macau's A2 deposit ratings incorporate the bank's ba1 BCA; a three-notch uplift based on our assumption of a very high level of support from its parent, Industrial & Commercial Bank of China Ltd (ICBC, A1 negative, baa1)¹; and a two-notch uplift based on our assessment of a very high level of indirect support from the Government of China (A1 negative).

ICBC Macau's ba1 BCA takes into consideration its weak asset quality, moderate capitalization and profitability, and good liquidity. The bank has stable intragroup funding to support its funding profile, but with high depositor concentration. The bank faces asset-quality pressure from its property-related lending.