Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Está por salir del sitio local de México y comenzará a navegar en el sitio global. ¿Desea continuar?
No mostrar este mensaje nuevamente
Si
No
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​​

I AGREE
Rating Action:

Moody's affirms Bank of China (Hong Kong) Limited's Aa3/P-1 deposit ratings; Outlook revised to stable

05 Feb 2020

Long-term counterparty risk ratings are downgraded to Aa3 from Aa2

Hong Kong, February 05, 2020 -- Moody's Investors Service has affirmed Bank of China (Hong Kong) Limited's (BOC Hong Kong) deposit ratings at Aa3/P-1. At the same time, Moody's has affirmed the bank's Baseline Credit Assessment (BCA) and Adjusted BCA at a2, Commercial Paper rating at P-1, Short-term Counterparty Risk Ratings (CRRs) at P-1, Counterparty Risk Assessment (CR Assessment) at Aa2(cr)/P-1(cr), Senior Unsecured MTN program at (P)Aa3, Subordinated debt and MTN program at A3/(P)A3, and non-cumulative Preference Stock at Baa2 (hyb).

Moody's has downgraded BOC Hong Kong's long-term CRRs to Aa3 from Aa2. The Hong Kong government's issuer rating has been downgraded to Aa3 from Aa2 on 20 January 2020. With moderate support assumption, BOC Hong Kong's long-term CRR does not warrant any sovereign support uplift, and has therefore been downgraded to Aa3.

The outlook on BOC Hong Kong has been revised to stable from negative.

A full list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

- Affirmation of the deposit and senior unsecured ratings

The affirmation of BOC Hong Kong's Aa3 long-term deposit and (P)Aa3 senior unsecured MTN program ratings reflects Moody's recalibration of support and structural analysis, underpinned by (1) Moody's expectation that the bank will be subject to Hong Kong's Loss Absorbing Capacity (LAC) requirement, resulting in Moody's view of a low loss-given-failure for unprotected deposits and hence one notch uplift to its standalone BCA; (2) Moody's expectation of moderate level of government support, resulting in one further notch of government support uplift vs. two notches under the previous assumption of high level of government support, and (3) resilience in the bank's standalone BCA.

The stable outlook for the bank's long-term deposit ratings takes into account the expected resilience of the bank's credit profile amid adverse economic conditions in Hong Kong.

BOC Hong Kong is subject to Hong Kong's Financial Institutions (Resolution) Ordinance and Moody's considers Hong Kong an operational resolution regime. Moody's expects the Hong Kong Monetary Authority to require BOC Hong Kong to issue LAC instruments.

Under Moody's Advanced LGF analysis, the bank's AT1 securities, subordinated notes, and future issuance of internal LAC instruments are likely to absorb losses before the bank's junior depositors and senior unsecured creditors, leading to low loss given failure for depositors and senior unsecured creditors in the event of resolution.

At the same time, the deposit and senior unsecured ratings also take into consideration a moderate level of support from Hong Kong government. The support assumption takes into account BOC Hong Kong's systemic importance, despite the government's intention to bail-in creditors and refrain from using public funds in the event of the bank's failure. Indirect support from the Chinese government through its parent Bank of China Limited (deposits A1 stable/P-1, BCA baa1) is also very likely, given the parent's large market share in China, and the bank's strategic importance to its parent.

- Affirmation of BCA and Adjusted BCA

The affirmation of BOC Hong Kong's a2 BCA takes into account its very strong market position in Hong Kong, sound asset quality, good liquidity profile and capitalization. The bank's strong deposit franchise leads to low funding cost and strong profitability. Moody's expects the bank to maintain sound financial metrics despite a challenging economic backdrop in Hong Kong.

BOC Hong Kong has maintained exceptionally strong capitalization since 2016 following the disposal of its two bank subsidiaries. The bank will likely retain strong capitalization amid weak credit demand in 2020. Moody's expects the bank to report an increase in its impaired loan ratio and a decline in its profitability amid the current weak economic backdrop, with narrowing margins and rising credit costs. Nevertheless, Moody's expects the bank to maintain above industry average asset quality metrics and profitability.

BOC Hong Kong has a very strong funding and liquidity profile. The bank's limited reliance on wholesale funding and its conservative loan-to-deposit ratio bolster its ability to withstand potential liquidity stress scenarios.

While governance is highly relevant for the banking industry, Moody's does not have particular governance concerns for BOC Hong Kong and does not apply any corporate behavior adjustment to the bank's BCA.

BOC Hong Kong is strategically important to its ultimate parent Bank of China Limited. Moody's considers the probability of support from the parent bank to be very high given the bank's strategic importance to the group. Nevertheless, Moody's does not incorporate any affiliate support uplift in the bank's Adjusted BCA as the parent has a lower BCA than BOC Hong Kong.

— Affirmation of CR Assessments and downgrade of long-term CRRs

The bank's long-term CR Assessment is Aa2(cr), three notches above its Adjusted BCA under Moody's Advanced LGF analysis. Under Moody's Advanced LGF analysis, the bank's junior deposits, senior unsecured debt, and junior instruments are likely to first bear losses in the event of failure before obligations represented by CR Assessments are subject to losses. The large volume of these liabilities lead to three notches of uplift for the bank's CR Assessments.

The bank's long-term CRRs are Aa3, two notches above its Adjusted BCA, reflecting Moody's view of very low loss-given-failure, given the subordination of the bank's junior deposits, senior unsecured debts and junior instruments. With the Hong Kong government's issuer rating at Aa3 and with moderate support assumption, BOC Hong Kong's long-term CRR does not warrant any sovereign support uplift, and has therefore been downgraded to Aa3.

— Affirmation of subordinated notes and AT1 capital securities

The (P)A3/A3 Subordinated MTN program and Subordinated debt ratings reflect: (1) BOC Hong Kong's Adjusted BCA of a2; (2) Moody's Advanced LGF analysis, resulting in a rating one notch below the bank's Adjusted BCA.

The Baa2 (hyb) AT1 securities rating reflects: (1) BOC Hong Kong's Adjusted BCA of a2; (2) Moody's Advanced LGF analysis, and (3) the probability of impairment associated with non-cumulative coupon suspension, resulting in a rating three notches below the bank's Adjusted BCA.

WHAT COULD MOVE THE RATING UP/DOWN

BOC Hong Kong's long-term deposit ratings are at the same level as the Hong Kong government's issuer rating, and an upgrade of the deposit ratings is unlikely.

An upgrade in the bank's BCA is also unlikely without an upgrade of the parent Bank of China Limited's BCA of baa1, given the financial and reputational linkages between the two entities. A widening of the gap between the two BCAs will be challenging, given the close links between the two entities and the potential contagion risks emanating from the parent.

The bank's deposit ratings could be downgraded if government support diminishes.

The bank's BCA could be downgraded if rapid growth in its overseas exposures weakened its capitalization and liquidity. A material weakening in asset quality and profitability metrics, due to sustained weakness in economic growth, especially in Hong Kong, the bank's key market, could lead to a downgrade in the bank's BCA.

A lower-than-expected issuance of LAC instruments may lead to higher expected losses for the bank's depositors and senior unsecured creditors in the event of resolution, and may lead to a downgrade for such liabilities.

The principal methodology used in these ratings was Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

List of Affected Credit Ratings:

.... Baseline Credit Assessment, Affirmed at a2

.... Adjusted Baseline Credit Assessment, Affirmed at a2

.... Long-term and short-term Counterparty Risk Assessment, Affirmed at Aa2(cr)/P-1(cr)

.... Long-term Counterparty Risk Rating (Foreign and local Currency), Downgraded to Aa3 from Aa2

.... Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed at P-1

.... Long-term Deposit Rating (Foreign and Local Currency), Affirmed at Aa3, Outlook changed to Stable from Negative

.... Short-term Deposit Rating (Foreign and Local Currency), Affirmed at P-1

.... Senior Unsecured Medium-Term Note Program (Foreign Currency), Affirmed at (P)Aa3

....Senior Unsecured Commercial Paper (Foreign Currency), Affirmed at P-1

....Subordinated debt (Foreign Currency), Affirmed at A3

....Subordinated Medium-Term Note Program (Foreign Currency), Affirmed at (P)A3

....Pref. Stock Non-cumulative Preferred Stock (Foreign Currency), Affirmed at Baa2 (hyb)

....Outlook, Changed To Stable From Negative

Bank of China (Hong Kong) Limited, headquartered in Hong Kong, reported its total assets of HKD2.8 trillion as of 30 June 2019.

REGULATORY DISCLOSURES

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entity is participating and the rated entity or its agent(s) generally provides Moody's with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody's Policy for Designating Non-Participating Rated Entities.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating.

Sonny Hsu, CFA
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Minyan Liu, CFA
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

Releasing Office:
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​