Hong Kong, June 26, 2018 -- Moody's Investors Service has today assigned Counterparty Risk Ratings
(CRRs) to 19 Chinese commercial banks and their branches as applicable
and 4 Chinese subsidiaries of international banks.
The Chinese commercial banks affected are: 1) Agricultural Bank
of China Limited (ABC), 2) Bank of China Limited (BOC), 3)
China Construction Bank Corporation (CCB), 4) Industrial and Commercial
Bank of China Ltd (ICBC), 5) Postal Savings Bank of China Co.,
Ltd. (PSBC), 6) Bank of Communications Co.,
Ltd. (BoCom), 7) China CITIC Bank Corporation Limited (CITICB),
8) China Everbright Bank Company Limited (CEB), 9) China Guangfa
Bank Co., Ltd. (CGB), 10) China Merchants Bank
Co., Ltd. (CMB), 11) Industrial Bank Co.,
Ltd. (CIB), 12) Ping An Bank Co., Ltd (PAB),
13) Shanghai Pudong Development Bank Co., Ltd. (SPDB);
14) Bank of Ningbo Co., Ltd. (BONB), 15) Bank
of Nanjing Co., Ltd. (BONJ), 16) Bank of Shanghai
Co., Ltd. (BOSC), 17) Bank of Suzhou Co.,
Ltd. (BOSZ), 18) China Zheshang Bank Co., Ltd.
(CZBANK), and 19) Guangzhou Rural Comm Bank Co., Ltd.
(GZRCB).
The Chinese subsidiaries of international banks affected are: 1)
Bank of Tokyo-Mitsubishi UFJ (China) Limited (BTCN), 2) Fubon
Bank (China) Co., Ltd. (FBCN), 3) Hang Seng
Bank (China) Limited (HSCN), and 4) HSBC Bank (China) Company Limited
(HBCN).
The full list of assigned ratings is provided at the end of this press
release.
Moody's Counterparty Risk Ratings are opinions of the ability of entities
to honour the uncollateralized portion of non-debt counterparty
financial liabilities (CRR liabilities) and also reflect the expected
financial losses in the event such liabilities are not honoured.
CRR liabilities typically relate to transactions with unrelated parties.
Examples of CRR liabilities include the uncollateralized portion of payables
arising from derivatives transactions and the uncollateralized portion
of liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated with
covered bonds, letters of credit, guarantees, servicer
and trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.
RATINGS RATIONALE
The CRRs assigned to the 19 rated Chinese commercial banks and 4 Chinese
subsidiaries of international banks are in line with the Counterparty
Risk Assessments (CRA) already assigned.
Because Moody's considers China not to have an operational resolution
regime, in assigning CRRs to the Chinese banks subject to this rating
action, the rating agency applies its basic Loss Given Failure (LGF)
approach. Moody's basic LGF analysis positions CRRs in line with
the banks' CRAs, one notch above their adjusted BCAs, prior
to government support.
Furthermore, the CRRs also incorporate between 1 and 3 notches of
uplift due to Moody's assessment of government support for the 19 rated
Chinese commercial banks in times of need, based on the banks' systemic
importance to China. The uplifts are in line with that applied
to the CRAs.
For the Chinese banks, except for subsidiaries of international
banks, the CRR also benefit from government support, broadly
in line with Moody's support assumptions on deposits. This reflects
Moody's view that any support provided by governmental authorities to
a bank, which benefits deposits, is very likely to benefit
CRR liabilities as well, consistent with Moody's belief that governments
are likely to maintain such operations as a going-concern in order
to reduce contagion and preserve a bank's critical functions.
As a result, the CRR for Chinese banks could be positioned at one
notch higher than their deposit ratings. However, for Chinese
banks whose deposit ratings already incorporate a very high or high level
of government support, their CRRs are positioned at the deposit
ratings, reflecting Moody's view that the probability of default
on their CRR liabilities would not be materially different from that of
deposits after government support and in the event of bank resolution.
In arriving at this view, Moody's has taken into account the fact
that China does not have a transparent operational resolution regime that
creates confidence that CRR liabilities have a lower probability of default
for banks whose deposit ratings also benefit from a material amount of
government support. Also, Moody's judgment is that supporting
deposits is likely to be one of the Chinese government's highest priorities
when it provides extraordinary support to prevent a bank failure.
The rating agency takes a similar view for operating activities and obligations
reflected by CRA.
By contrast, in the case of seven banks where there is lower probability
of government support, Moody's has positioned the long term CRR
one notch higher than the long term deposit rating. These banks
are: China Guangfa Bank Co., Ltd., Ping
An Bank Co., Ltd, Bank of Suzhou Co.,
Ltd., Bank of Tokyo-Mitsubishi UFJ (China) Limited,
Fubon Bank (China) Co., Ltd., Hang Seng Bank
(China) Limited and HSBC Bank (China) Company Limited. Most of
these bank ratings benefit from affiliate support in their ratings,
from their foreign bank parents in the case of the four Chinese subsidiaries
of international banks, from the Ping An Insurance (Group) Co of
China, Ltd. in the case of Ping An Bank Co.,
Ltd, from China Life Insurance Co Ltd, in the case of China
Guangfa Bank Co., Ltd. In the case of Bank of Suzhou
Co., Ltd., its long term CRR benefits from one
notch of government support, in line with our support assumptions
for its long term deposit ratings. This treatment reflects our
view that any support provided by government authorities to a bank,
which benefits deposits, is very likely to benefit CRR liabilities
as well.
OUTLOOK
CRRs do not carry outlooks.
FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE
The CRR of ABC, BOC, CCB, ICBC and PSBC are at the same
level of the sovereign rating after factoring in a very high level of
government support. Hence, there could be upward pressure
on the CRR and other long term ratings should the Chinese government's
capability, as reflected in the Chinese sovereign rating,
to support the banks strengthen.
In addition to ABC, BOC, CCB, ICBC and PSBC, other
banks -- with the exception of the Chinese subsidiaries
of the four international banks -- have ratings incorporating
various levels of government support. There could be upward or
downward pressure on their CRR should the Chinese government's capability
or willingness to support the banks strengthen or weaken.
Furthermore, should the operating environment weaken materially,
for example, if China's economic growth moderates or corporate financial
leverage continues to increase, then there would be negative pressure
on the banks' BCAs and hence pressure on CRR.
As BCA is one of the main inputs that drive CRRs, the CRRs could
be upgraded following an upgrade of rated banks' respective BCAs.
However potential upgrades could be constrained by China's local
and foreign currency ceilings. Conversely, the CRRs could
be downgraded following a downgrade of the banks' respective BCAs.
More bank-specific rating triggers are summarized below.
ABC
The bank's BCA could experience upward pressure if (1) it continues to
show improvements in its asset-quality trends and profitability;
and/or (2) its capital strengthens as a result of the announced private
placement of common shares and sound growth of risk-weighted assets
(RWAs), with an improvement in its tangible common equity (TCE)
capital ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital weakens,
with a deterioration in the TCE capital ratio because of a failure to
raise capital as planned or excessive growth of RWAs.
BOC
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of the formation of problem loans, continues
to improve; (2) its profitability, as measured by the return
on assets, improves; and/or (3) its capital strengthens,
with an improvement in its TCE capital ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital weakens,
with a deterioration in its TCE capital ratio.
CCB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, continues
to improve; (2) its profitability, as measured by the return
on assets, remains resilient; and/or (3) its capital continues
to strengthen, with an improvement in its TCE capital ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital weakens,
with a deterioration in its TCE capital ratio.
ICBC
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, continues
to improve; (2) its profitability, as measured by the return
on assets, remains resilient; and/or (3) its capital continues
to strengthen, with an improvement in its TCE capital ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital weakens,
with a deterioration in its TCE capital ratio.
PSBC
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, remains healthy
as its rapidly growing loan portfolio seasons; and/or (2) its capital
strengthens, as a result of its A-share listing and the sound
growth of its risk-weighted assets (RWAs), with an improvement
in its TCE capital ratio.
PSBC's CRR could be downgraded if China Post Group significantly dilutes
its stake in the bank. The bank's BCA could also experience downward
pressure if (1) its asset quality deteriorates, owing to operational
risks; (2) profitability weakens materially; and/or (3) its
capital weakens, with a deterioration in its TCE capital ratio because
of a failure to raise capital as planned or excessive growth of RWAs.
BoCom
The bank's BCA could experience upward pressure if (1) its funding profile
improves, with its market funds/tangible banking assets ratio declining
to below 25%; (2) its profitability, as measured by
return on assets, improves; and/or (3) its asset quality,
capital and liquid resources ratios remain stable.
The bank's BCA could experience downward pressure if (1) its reliance
on market funds increases rapidly; and/or (2) asset quality,
profitability and capitalization weaken materially.
CITICB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, remains healthy
while its asset mix adjusts to the regulatory reform of the shadow banking
and interbank activities; (2) its profitability, as measured
by the return on assets, remains resilient; (3) its capital
strengthens, as a result of capital-raising and restrained
growth of RWAs, with an improvement in it TCE capital ratio;
and/or (4) its reliance on market funding continues to decrease,
with an improvement in its market funds/tangible banking assets ratio.
The bank's CRR could be downgraded if CITIC Group Corporation (A3 stable)
significantly dilutes its stake in the bank. The bank's BCA could
experience downward pressure if (1) its asset quality and profitability
weaken materially; (2) its capital weakens, with a deterioration
in its TCE capital ratio; and/or (3) its reliance on market funding
increases, with a deterioration in its market funds/tangible banking
assets ratio.
CEB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, remains healthy,
while its asset mix adjusts to the regulatory reform of shadow banking
and interbank activities; (2) its profitability, as measured
by the return on assets, remains resilient; (3) its capital
strengthens, as a result of restrained growth in risk-weighted
assets (RWAs), with an improvement in its TCE capital ratio;
and/or (4) its reliance on market funding continues to decrease,
with an improvement in its market funds/tangible banking assets ratio.
The bank's CRR could be downgraded if China Everbright Group significantly
dilutes its stake in the bank. The bank's BCA could experience
downward pressure if (1) its asset quality and profitability weaken materially;
(2) its capital weakens, with a deterioration in its TCE capital
ratio; and/or (3) its reliance on market funding increases,
with a deterioration in its market funds/tangible banking assets ratio.
CGB
The bank's CRR incorporates a high level of affiliate support.
Consequently, an increase in the bank's strategic importance to
the China Life Group could exert upward pressure on its ratings.
The bank's BCA could experience upward pressure if its asset quality,
profitability and funding profile improve while its capital position strengthens.
A reduction in the bank's strategic importance to the China Life Group
could pressure downward the bank's ratings. The bank's BCA could
experience downward pressure if (1) its asset quality, as measured
by the rate of formation of problem loans, deteriorates; (2)
its capital position weakens owing to rapid asset growth; and/or
(3) its reliance on market funding continues to increase.
CMB
The bank's BCA could experience upward pressure if its asset quality and
capitalization continue to improve while profitability and liquidity remain
resilient.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken; (2) its capital weakens materially because
of rapid asset growth; (3) its reliance on market funding increases;
and/or (4) its off-balance sheet wealth-management product
exposures impact negatively on its liquidity position.
CIB
The bank's BCA could experience upward pressure if (1) its funding structure
improves significantly; (2) its asset quality, as measured
by the rate of formation of problem loans, and profitability,
as measured by return on assets, remain resilient; and/or (3)
its capital strengthens, with an improvement in its TCE capital
ratio.
The bank's BCA could experience downward pressure if (1) its asset quality,
capitalization and profitability weaken materially; and/or (2) its
funding structure deteriorates.
PAB
The bank's BCA could experience upward pressure if the bank's (1) asset
quality, as measured by new problem loan formation, and profitability,
as measured by return on average assets, remain resilient;
and/or (2) capital strengthens.
The bank's CRR incorporates a very high level of parental support.
Consequently, any weakening in the parent's capacity to provide
support to the bank or a decrease in the bank's strategic importance to
the parent would put negative pressure on the bank's ratings.
The bank's BCA could also experience downward pressure if (1) its asset-quality
deteriorates; (2) its capital position weakens owing to rapid asset
growth; and/or (3) its reliance on wholesale funding increases.
SPDB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, improves;
(2) its profitability, as measured by the return on assets,
remains resilient; (3) its capital further strengthens, as
a result of capital-raising and sound growth of RWAs, with
an improvement in its TCE capital ratio; and/or (4) its reliance
on market funding decreases, with an improvement in its market funds/tangible
banking assets ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
deteriorates; (2) its capital position weakens owing to rapid asset
growth; and/or (3) its reliance on market funding increases.
BONB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, remains healthy;
(2) its capital position remains robust while profitability strengthens;
and/or (3) its liquidity profile improves.
The bank's BCA could experience downward pressure if (1) its asset quality
deteriorates; (2) its capital position weakens owing to rapid asset
growth; and/or (3) its reliance on market funding increases.
BONJ
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, and profitability,
as measured by the return on assets, remain resilient; (2)
its capital position strengthens materially; and/or (3) its liquidity
profile remains stable.
The bank's BCA could experience downward pressure if (1) its solvency
or liquidity indicators weaken while adjusting to tighter regulations
on shadow banking and interbank activities; (2) its asset quality
and profitability weaken materially; (3) its RWAs grow fast and lead
to a weaker capital position; and/or (4) its liquidity condition
deteriorates.
BOSC
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, remains healthy;
(2) its capital position remains robust while profitability strengthens;
and/or (3) its liquidity profile improves.
The bank's BCA could experience downward pressure if (1) its asset quality
deteriorates; (2) its capital position weakens owing to rapid asset
growth; and/or (3) its reliance on market funding increases.
BOSZ
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, and profitability,
as measured by return on assets, remain resilient; and/or (2)
its capital strengthens, with an improvement in its TCE capital
ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
deteriorates; (2) its capital position weakens owing to rapid asset
growth; and/or (3) its reliance on market funding increases.
CZBANK
The bank's BCA could experience upward pressure if (1) its asset quality
remains stable while profitability improves; (2) its capital position
strengthens with RWA growth slowing to around 15%; and/or
(3) its deposit base continues to grow and the maturity profiles of its
funding and investments are better aligned.
The bank's BCA could experience downward pressure if (1) its asset quality,
profitability and capital weaken materially; and/or (2) its liquidity
position deteriorates significantly.
GZRCB
The bank's BCA could experience upward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, and profitability,
as measured by the return on assets, improve; and/or (2) capital
strengthens, with an improvement in its TCE capital ratio.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital position
weakens.
BTCN
The bank's CRR incorporates a very high level of parental support.
Hence, the bank's ratings could be upgraded if the parent's BCA
is upgraded. The bank's BCA could experience upward pressure if
it maintains sound financial metrics and its business diversification
improves.
The bank's ratings could be downgraded if its parent's rating is downgraded.
The bank's BCA could experience downward pressure if (1) its asset quality,
as measured by the rate of formation of problem loans, deteriorates;
and/or (2) its capitalization weakens, with the TCE capital ratio
falling below 12%.
FBCN
The bank's CRR incorporates a very high level of parental support.
Hence, the bank's ratings could be upgraded if the parent's BCA
is upgraded. The bank's BCA could experience upward pressure if
(1) its asset quality, profitability and liquidity profile remains
stable while its capital position strengthens; and/or (2) its deposit
franchise improves with a lowering of cost of liabilities.
The bank's ratings could be downgraded if the parent's rating is downgraded.
The bank's BCA could experience downward pressure if (1) its capital position
weakens, with the TCE capital ratio falling below 10%;
(2) its asset quality, as measured by the rate of formation of problem
loans, deteriorate; and/or (3) its net income falls below 0.2%
of tangible assets.
HSCN
The bank's CRR incorporates a very high level of parental support.
Hence, the bank's ratings could be upgraded if the parent's BCA
is upgraded. The bank's BCA could experience upward pressure if
(1) its funding structure improves, with solid growth in core deposits;
(2) its profitability, as measured by the return on assets,
improves; and/or (3) its asset quality and capital adequacy improve
further.
The bank's CRR could be downgraded if its parent's rating is downgraded.
The bank's BCA could experience downward pressure if (1) its funding structure,
as measured by market funds/tangible banking assets, deteriorates;
(2) its asset quality and profitability weaken materially; and/or
(3) its capital position weakens significantly.
HBCN
The bank's CRR incorporates a very high level of parental support.
Hence, the bank's ratings could be upgraded if the parent's BCA
is upgraded. The bank's BCA could experience upward pressure if
its asset quality, profitability, and capital position improve
further.
The bank's CRR could be downgraded if its parent's rating is downgraded.
The bank's BCA could experience downward pressure if (1) its asset quality
and profitability weaken materially; and/or (2) its capital position
weakens significantly.
The principal methodology used in these ratings was Banks published in
June 2018. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
The Local Market analyst for Agricultural Bank of China Limited,
Agricultural Bank of China Limited, NY Branch, Agricultural
Bank of China Ltd, Dubai Branch, Agricultural Bank of China
Ltd., HK Branch, Bank of China Limited, Bank
of China Limited, Dubai Branch, Bank of China Limited,
Frankfurt Branch, Bank of China Limited, Hong Kong Branch,
Bank of China Limited, London Branch, Bank of China Limited,
Luxembourg Branch, Bank of China Limited, Macau Branch,
Bank of China Limited, New York Branch, Bank of China Limited,
Paris Branch, Bank of China Limited, Singapore Branch;
Bank of China Limited, Sydney Branch, Bank of China Limited,
Taipei Branch, Bank of China Limited, Tokyo Branch,
China CITIC Bank Corporation Limited, China Construction Bank Corporation,
China Construction Bank Corp., Frankfurt, China Construction
Bank Corp., HK Branch, China Construction Bank Corp.,
NY Branch, China Everbright Bank Company Limited, Industrial
& Commercial Bank of China Ltd, Industrial & Comm'l Bank
of China Ltd., Doha, Industrial & Comm'l Bank of
China Ltd., Dubai, Industrial and Comm'l Bank of China
Ltd., HK, Indust'l and Comm'l Bank of China Ltd.,
Ldn, Industrial and Comm'l Bank of China Ltd., Lux,
Industrial and Comm'l Bank of China Ltd., NY, Industrial
& Comm'l Bank of China, Singapore, Industrial & Comm'l
Bank of China Ltd, Sydney, Ind'l and Comm'l Bank of China
Ltd., Tokyo, and Postal Savings Bank of China Co.,
Ltd. is Nicholas Zhu, VP - Senior Analyst, Financial
Instiutions Group, +852 3758 1350, +852 3551 3077.
The Local Market analyst for Bank of Communications Co.,
Ltd., Bank of Communications Co., Ltd.
HK Branch, Bank of Nanjing Co., Ltd, Bank of
Ningbo Co., Ltd., Bank of Tokyo-Mitsubishi
UFJ (China) Limited, Bank of Shanghai Co., Ltd,
Bank of Suzhou Co., Ltd., China Guangfa Bank
Co., Ltd., China Merchants Bank Co.,
Ltd., China Merchants Bank Co Ltd, Hong Kong Branch,
China Merchants Bank Co Ltd, Luxembourg Br., China
Merchants Bank Co Ltd, New York Branch, China Merchants Bank
Co Ltd, Singapore Branch, China Zheshang Bank Co.,
Ltd., Fubon Bank (China) Co., Ltd.,
Guangzhou Rural Comm Bank Co., Ltd., Hang Seng
Bank (China) Limited, HSBC Bank (China) Company Limited, Industrial
Bank Co., Ltd., Industrial Bank Co.,
Ltd., Hong Kong branch, Ping An Bank Co.,
Ltd, Shanghai Pudong Development Bank Co., Ltd.,
and Shanghai Pudong Dev. Bk Co., Ltd.,
HK Branch is Yulia Wan, AVP Analyst, Financial Institutions
Group, +852 3758 1350, +852 3551 3077.
LIST OF ASSIGNED RATINGS
Agricultural Bank of China Limited; Agricultural Bank of China Limited,
NY Branch; Agricultural Bank of China Ltd, Dubai Branch;
Agricultural Bank of China Ltd., HK Branch
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Bank of China Limited; Bank of China Limited, Dubai Branch;
Bank of China Limited, Frankfurt Branch; Bank of China Limited,
Hong Kong Branch; Bank of China Limited, London Branch;
Bank of China Limited, Luxembourg Branch; Bank of China Limited,
Macau Branch; Bank of China Limited, New York Branch;
Bank of China Limited, Paris Branch; Bank of China Limited,
Singapore Branch; Bank of China Limited, Sydney Branch;
Bank of China Limited, Taipei Branch; Bank of China Limited,
Tokyo Branch
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Bank of Communications Co., Ltd.; Bank of Communications
Co., Ltd. HK Branch
Local and foreign currency long-term Counterparty Risk ratings
of A2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Bank of Nanjing Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-3 is assigned
Bank of Ningbo Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Bank of Shanghai Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Bank of Suzhou Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-3 is assigned
Bank of Tokyo-Mitsubishi UFJ (China) Limited
Local and foreign currency long-term Counterparty Risk ratings
of A2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
China CITIC Bank Corporation Limited
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
China Construction Bank Corporation; China Construction Bank Corp.,
Frankfurt; China Construction Bank Corp., HK Branch;
China Construction Bank Corp., NY Branch
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
China Everbright Bank Company Limited
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
China Guangfa Bank Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
China Merchants Bank Co., Ltd.; China Merchants
Bank Co Ltd, Hong Kong Branch; China Merchants Bank Co Ltd,
Luxembourg Br.; China Merchants Bank Co Ltd, New York
Branch; China Merchants Bank Co Ltd, Singapore Branch
Local and foreign currency long-term Counterparty Risk ratings
of A3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
China Zheshang Bank Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Ba1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of NP is assigned
Fubon Bank (China) Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of A3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Guangzhou Rural Comm Bank Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Hang Seng Bank (China) Limited
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
HSBC Bank (China) Company Limited
Local and foreign currency long-term Counterparty Risk ratings
of Aa3 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Industrial Bank Co., Ltd.; Industrial Bank Co.,
Ltd., Hong Kong branch
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Industrial & Commercial Bank of China Ltd; Industrial & Comm'l
Bank of China Ltd., Doha; Industrial & Comm'l Bank
of China Ltd., Dubai; Industrial and Comm'l Bank of
China Ltd., HK; Indust'l and Comm'l Bank of China Ltd.,
Ldn; Industrial and Comm'l Bank of China Ltd., Lux;
Industrial and Comm'l Bank of China Ltd., NY; Industrial
& Comm'l Bank of China, Singapore; Industrial & Comm'l
Bank of China Ltd, Sydney; Ind'l and Comm'l Bank of China Ltd.,
Tokyo
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Ping An Bank Co., Ltd
Local and foreign currency long-term Counterparty Risk ratings
of Baa1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
Postal Savings Bank of China Co., Ltd.
Local and foreign currency long-term Counterparty Risk ratings
of A1 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-1 is assigned
Shanghai Pudong Development Bank Co., Ltd.; Shanghai
Pudong Dev. Bk Co., Ltd., HK Branch
Local and foreign currency long-term Counterparty Risk ratings
of Baa2 is assigned
Local and foreign currency short-term Counterparty Risk ratings
of P-2 is assigned
ABC is a state-owned commercial bank headquartered in Beijing.
It reported total assets of RMB21.0 trillion as of the end of 2017.
The bank is a global systemically important bank, as identified
by the Financial Stability Board.
BOC is a state-owned commercial bank headquartered in Beijing.
It reported total assets of RMB19.5 trillion as of the end of 2017.
The bank is a global systemically important bank, as identified
by the Financial Stability Board.
CCB is a state-owned commercial bank headquartered in Beijing.
It reported total assets of RMB22.1 trillion as of the end of 2017.
The bank is a global systemically important bank, as designated
by the Financial Stability Board.
ICBC is a state-owned commercial bank headquartered in Beijing.
It reported total assets of RMB26.0 trillion as of the end of 2017.
The bank is a global systemically important bank, as designated
by the Financial Stability Board.
PSBC is a state-owned commercial bank headquartered in Beijing.
It reported total assets of RMB9.0 trillion as of the end of 2017.
BoCom is a state-owned commercial bank headquartered in Shanghai.
It reported total assets of RMB9.0 trillion as of the end of 2017.
CITICB is a joint-stock commercial bank headquartered in Beijing.
It reported total assets of RMB5.7 trillion as of the end of 2017.
CEB is a joint-stock commercial bank headquartered in Beijing.
It reported total assets of RMB4.1 trillion as of the end of 2017.
CGB is a joint-stock commercial bank headquartered in Guangzhou
city, Guangdong province. It reported total assets of RMB2.1
trillion as of the end of 2017.
CMB is a joint-stock commercial bank headquartered in Shenzhen.
It reported total assets of RMB6.3 trillion as of the end of 2017.
CIB is a joint-stock commercial bank headquartered in Fuzhou city,
Fujian province. It reported total assets of RMB6.4 trillion
as of the end of 2017.
PAB is a joint-stock commercial bank headquartered in Shenzhen.
It reported total assets of RMB3.2 trillion as of the end of 2017.
SPDB is a joint-stock commercial bank headquartered in Shanghai.
It reported total assets of RMB6.1 trillion as of the end of 2017.
BONB is a city commercial bank headquartered in Ningbo city, Zhejiang
province. It reported total assets of RMB1.0 trillion as
of the end of 2017.
BONJ is a city commercial bank headquartered in Nanjing city, Jiangsu
Province. It reported total assets of RMB1.1 trillion as
of the end of 2017.
BOSC is a city commercial bank headquartered in Shanghai. It reported
total assets of RMB1.8 trillion as of the end of 2017.
BOSZ is a city commercial bank headquartered in Suzhou city, Jiangsu
Province. It reported total assets of RMB284 billion as of the
end of 2017.
CZBANK is a joint-stock commercial bank headquartered in Hangzhou
city, Zhejiang province. It reported total assets of RMB1.5
trillion as of the end of 2017.
GZRCB is a rural commercial bank headquartered in Guangzhou city,
Guangdong Province. It reported total assets of RMB736 billion
as of the end of 2017.
BTCN is headquartered in Shanghai. It reported total assets of
RMB185 billion as of the end of 2017.
FBCN is headquartered in Shanghai. It reported total assets of
RMB72 billion as of the end of 2017.
HSCN is headquartered in Shanghai. It reported total assets of
RMB98 billion as of the end of 2017.
HBCN is headquartered in Shanghai. It reported total assets of
RMB468 billion as of the end of 2017.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt 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.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
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.
Ray Heung
Senior Vice President
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
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
