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Rating Action:

Moody's concludes review on six Hong Kong banks

 The document has been translated in other languages

05 Jun 2015

Actions conclude methodology-related review; CR Assessments assigned to 15 banks

Hong Kong, June 05, 2015 -- Moody's Investors Service has today concluded its reviews on six Hong Kong banks. These reviews were initiated on 17 March 2015 (see press release at http://www.moodys.com/viewresearchdoc.aspx?docid=PR_321005), following the publication of Moody's new bank rating methodology (see "Banks," 16 March 2015, available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_179038).

Moody's rating actions on Hong Kong banks reflect the following considerations: (1) Hong Kong's 'Strong+' Macro Profile, and to a lesser extent, China's 'Moderate+' Macro Profile; (2) the Hong Kong banks' generally strong core financial metrics; (3) changes in affiliate and government support considerations under Moody's revised Banks methodology.

Moody's has also assigned Counterparty Risk (CR) assessments to 15 Hong Kong banks and their branches, in line with its new Banks methodology.

Moody's has affirmed four other Hong Kong banks ratings, and withdrawn the outlooks on all junior instrument ratings for the banks covered in this press release for its own business reasons. Please refer to "Moody's Investors Service's Policy for Withdrawal of Credit Ratings", available on its website, www.moodys.com.

Outlooks, which indicate the direction of any rating pressures, are now assigned only to long-term senior unsecured debt and deposit ratings. For the banks previously under review, Moody's has assigned stable outlook to the long-term deposit ratings of five of the banks, and negative outlook to one.

Among the rating actions Moody's has taken today are the following:

- One long-term bank deposit ratings downgraded, eight affirmed, one confirmed, and five unchanged

- Six long-term senior unsecured debt/MTN program ratings affirmed, one confirmed, and one unchanged

- Ten short-term bank deposit ratings affirmed, and five unchanged

- Two baseline credit assessment (BCA) upgraded, one downgraded, seven affirmed, and five unchanged

- Six adjusted BCA downgraded, four affirmed, and five unchanged

- Two subordinated debt//MTN program ratings downgraded, one upgraded, and six affirmed

For more information on the new bank rating methodology, please see Moody's press release at

http://www.moodys.com/viewresearchdoc.aspx?docid=PR_321005.

The list of affected ratings follows at the end of the press release.

RATINGS RATIONALE

The new methodology includes a number of elements that Moody's has developed to help accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution. These new elements capture insights gained from the crisis and the fundamental shift in the banking industry and its regulation.

(1) Hong Kong's "Strong+" macro profile, and China's "Moderate+" macro profile

Hong Kong banks benefit from operating in a relatively mature economy with strong economic and institutional strengths and low susceptibility to potential event risks. However, fast credit growth in recent years, high levels of private sector borrowing and elevated property prices all pose risks to banks' operating environment.

Hong Kong banks' Mainland Chinese exposures have grown strongly in recent years, due to the relative maturity of the local economy, and strong demand for credit from Mainland Chinese borrowers. As such, China's "Moderate+" Macro Profile is increasing in importance in our assessment of each Hong Kong bank's operating conditions, though the weight will vary from bank to bank depending on the proportion of their assets that relate to China. Although China has maintained consistently strong economic growth over the past two decades, its weaker institutional and legal framework, rapid credit growth since 2008, and increasing competition in the banking industry weigh negatively on our assessment of its macro profile.

(2) HONG KONG BANKS' STRONG CORE FINANCIAL PROFILES

Hong Kong banks' median BCA of a3 (BCAs range from aa3 to baa2) reflects their generally strong solvency and liquidity profiles. Even though systemic imbalances in Hong Kong, which include loose monetary conditions, elevated property prices, and increasing corporate and consumer leverage, have heightened the banking system's vulnerability to potential shocks, Hong Kong banks mostly retain strong loss-absorption capability with good earnings and sound capitalization. Banks also have limited reliance on wholesale funding, and liquid assets comprise a significant proportion of their overall balance sheet.

(3) CHANGE IN AFFILIATE AND GOVERNMENT SUPPORT FRAMEWORK

Under the new Banks methodology, Moody's incorporates parental support for Hong Kong subsidiaries of Chinese banks by referencing each parent's BCA as support anchor, instead of referencing the parent's deposit rating as was the case under the previous methodology. The change in affiliate support framework led to the downgrade of six Hong Kong banks' adjusted BCA. Nevertheless, Moody's assumes that the importance of these Hong Kong subsidiaries to the Chinese parent banks, combined with Hong Kong's status as a Special Administrative Region of China, means that extraordinary support from the Chinese government to the parent bank in times of distress would likely extend to the Hong Kong subsidiary. Therefore, indirect government support (from China) is assumed in these banks' deposit and senior unsecured ratings. Consequently, five out of the six banks' deposit and senior unsecured ratings have been either affirmed or confirmed in today's rating actions.

ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS

Moody's has also assigned CR Assessments to 15 Hong Kong banks and their branches. CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than expected loss and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

The CR Assessment takes into account the issuer's standalone strength as well as the likelihood of affiliate and government support in the event of need, reflecting the anticipated seniority of these obligations in the liabilities hierarchy. The CR Assessment also incorporates other steps authorities can take to preserve the key operations of a bank should it enter a resolution.

For Hong Kong banks, the CR Assessment is positioned, prior to government support, one notch above the Adjusted BCA and therefore above senior unsecured and deposit ratings, reflecting our view that its probability of default is lower than that of senior unsecured debt and deposits. We believe senior obligations represented by the CRA will be more likely preserved in order to limit contagion, minimize losses and avoid disruption of critical functions. For the 15 Hong Kong banks, the CR Assessment also benefits from systemic support in line with our support assumptions on deposits and senior unsecured debt. This reflects our view that any support provided by governmental authorities to a bank which benefits senior unsecured debt or deposits is very likely to benefit operating activities and obligations reflected by the CR Assessment as well, consistent with our 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.

SPECIFIC ANALYTICAL FACTORS FOR THE BANKS

- Bank of East Asia

The affirmation of Bank of East Asia's BCA reflects the bank's sound liquidity profile and capitalization. Nevertheless, the bank's large and growing Mainland exposures weigh negatively on its credit profile. The affirmation of the bank's A2 deposit and senior unsecured rating takes into account Moody's assumption of very high likelihood of government support for the bank. On the other hand, the negative outlook on the bank's deposit and senior unsecured ratings reflect the expectation that such support may diminish in the future following the introduction of Hong Kong's pending revised bank resolution regime.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Bank of East Asia's deposit rating is high, and is unlikely to be upgraded. If the bank can maintain good asset quality and effective risk controls through an economic downturn, and improve its capitalization, its BCA may be upgraded.

The bank's deposit ratings may be downgraded if our assessment of expected government support weakens. The bank's BCA may be downgraded if strong loan and asset growth outpace capital generation, leading to a tangible common equity/RWA ratio below 10.5%. Further material increases in Mainland exposures, or a greater than expected economic slowdown in Hong Kong and China may also trigger a review for downgrade. A significant deterioration in the bank's asset quality metrics, with impaired loans rising above 1.5%, may also trigger a review for downgrade.

- Bank of China (Hong Kong)

The affirmation of Bank of China (Hong Kong)'s a2 BCA reflects its strong financial profile with good capitalization, sound asset quality and strong liquidity profile. Bank of China (Hong Kong) has a well-established franchise and strong market position in Hong Kong as the second largest bank in the territory. The bank's strong market position and deposit franchise lead to low funding costs and good profitability.

Moody's has lowered Bank of China (Hong Kong)'s adjusted BCA to a2 from a1. While Moody's believes that there is a very high probability of support from the bank's parent Bank of China (deposits A1 stable, BCA baa2), the fact that the parent has a lower BCA means that this does not lift the adjusted BCA of Bank of China (Hong Kong) above its BCA. At the same time, Moody's has affirmed Bank of China (Hong Kong)'s deposit and senior unsecured ratings at Aa3/Prime-1. The bank's deposit ratings incorporate two notches of government support uplift, given our expectation of very high likelihood of extraordinary support from either or both the Hong Kong and Mainland Chinese government.

Moody's assigned a Aa2(cr)/Prime-1(cr) CR Assessment to Bank of China (Hong Kong), which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Bank of China (Hong Kong)'s deposit rating is already high relative to global peers and is unlikely to be upgraded. The bank's standalone BCA could be adjusted higher if it

- maintains high level of capitalization with tangible common equity/RWA ratio of 12.5% or above,

- expands its Mainland-related business prudently, and

- increases revenue contribution from stable and low risk businesses

Bank of China (Hong Kong)'s deposit rating and standalone BCA could be adjusted lower if

- signs of material deterioration in asset quality emerge, with impaired loans rising above 1% of gross loans

- strong credit growth outpaces internal capital generation, leading to a decline of TCE/RWA ratio below 10.5%

- China CITIC Bank International

The upgrade of China CITIC Bank International's BCA to baa2 from baa3 primarily reflects Moody's revised view of the bank's solvency and overall financial profile in the context of the new methodology. It takes into account the bank's relative positioning given the improvement in its reported financial metrics in recent years, with steadily declining problem loan ratios, widening margins and rising overall profitability.

Moody's has lowered the bank's adjusted BCA to baa2 from baa1. While Moody's believes that there is a very high probability of support from the bank's parent China CITIC Bank Corporation Limited (deposits Baa1 stable, BCA ba1), the fact that the parent has a lower BCA means that this does not lift the adjusted BCA of China CITIC Bank International above its BCA. Moody's has also upgraded the bank's legacy dated subordinated debt to Baa3, undated subordinated MTN program to (P)Ba1 and Basel III-compliant Additional Tier 1 securities ratings to Ba2(hyb). This reflects the increase in the BCA and the notching of the bank's legacy dated and undated subordinated debt and Basel III-compliant Additional Tier 1 securities follow standard Moody's practice for rating banks' junior instruments.

The bank's long-term deposits are confirmed at Baa1. The bank's deposit ratings incorporate one notch of government support uplift, given Moody's expectation of a high likelihood of indirect support from the Mainland Chinese government that would flow through the parent.

Moody's assigned a A3(cr)/Prime-2(cr) CR Assessment to China CITIC Bank International, which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The bank's deposit rating could be upgraded if the external support increases. The bank's BCA could be adjusted higher if the bank further improves its franchise and financial profile. The BCA could also be raised if the bank maintains sound asset quality metrics while improving its tangible common equity/RWA ratio above 13%.

A material increase in riskier Mainland exposures may lead to a lower BCA. Deterioration in the bank's capitalization (tangible common equity/RWA ratio below 10.5%) and/or asset quality (with an impaired loan ratio of 2.5% or above) due to imprudent expansion or misjudged credit allocation could also lead to a lower BCA.

- China Construction Bank (Asia) Corp.

The downgrade of China Construction Bank (Asia)'s BCA to baa1 from a3 takes into account the decline in the bank's capitalization in 2014, with the Common Equity Tier 1 ratio falling to 14.8% from 16.6%. Strong growth for the bank in 2015 could further erode its capitalization. Meanwhile, although the bank's liquidity profile improved in 2014 with strong growth in its customer deposits, the bank continues to rely to a greater extent on wholesale funding than its Hong Kong peers.

China Construction Bank (Asia)'s adjusted BCA has been downgraded to baa1 from a2. While Moody's believes that there is a very high probability of support from the bank's parent China Construction Bank (deposits A1 stable, BCA baa2), the fact that the parent has a lower BCA means that this does not lift the adjusted BCA of China Construction Bank (Asia) above its BCA. Moody's has also downgraded the bank's point of non-viability (PONV) subordinated debt by one notch to Baa2(hyb), with the action reflecting the one-notch downgrade of the bank's BCA. At the same time, Moody's has affirmed the bank's long-term and short-term deposit ratings at A2/Prime-1. The bank's deposit ratings incorporate two notches of government support uplift, and reflect Moody's expectation of very high likelihood of indirect support from the Mainland Chinese government that would flow through its parent.

Moody's assigned a A1(cr)/Prime-1(cr) CR Assessment to China Construction Bank (Asia), which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

China Construction Bank (Asia)'s deposit ratings could be upgraded if the parent's ratings were upgraded or if we consider indirect government support as more likely than currently assumed. The bank's BCA could be adjusted higher if the bank can improve its capitalization and liquidity profile.

CCB Asia's deposit ratings could be downgraded if the likelihood of parental support or indirect systemic support diminishes.

The bank's standalone BCA will likely be lowered if its capitalization declines significantly, with tangible common equity/RWA below 12%, or if direct Mainland exposures grow to account for a materially higher share of overall loans.

- Chiyu Banking Corp.

The affirmation of Chiyu's a3 BCA reflects its very strong capitalization, good profitability, sound asset quality, and conservative liquidity profile. The BCA also takes into account the bank's small size and franchise.

Moody's has lowered Chiyu's adjusted BCA to a2 from aa3. The bank's a2 adjusted BCA takes into account expectation of very strong support from the bank's parent Bank of China (Hong Kong). The bank's adjusted BCA is at the same level as the parent's BCA.

Moody's has downgraded Chiyu's deposit ratings to A1 from Aa3. The bank's A1 deposit rating incorporates one notch of government support uplift, given our expectation of moderate likelihood of indirect Hong Kong government support that flows through the parent. Moody's assess the likelihood of indirect government support for Chiyu as lower than the expected government support of its parent Bank of China (Hong Kong), given Chiyu's small size and its lack of systemic importance.

Moody's assigned a Aa3(cr)/Prime-1(cr) CR Assessment to Chiyu, which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The bank's BCA and deposit ratings are high given its very small size.

Chiyu's deposit ratings could be downgraded if the likelihood of parental and indirect systemic support weakens.

The bank's BCA could be downgraded if it expands rapidly at the expense of asset quality and capital adequacy. An important assumption underlying the current rating and standalone assessment is the bank's ability to maintain a very strong capitalization, which offsets the credit weakness that stems from its small size and modest franchise.

- Chong Hing Bank

The affirmation of Chong Hing Bank's BCA and deposit and subordinated debt ratings takes into account its satisfactory capitalization, good balance sheet liquidity, and sound asset quality metrics. The bank's negative outlook reflects our concerns over the bank's expected strong growth and growing exposures in China.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the negative outlook on the bank's ratings, upward rating actions are unlikely. Nevertheless, the outlook may revert to stable if it becomes clear that the bank will maintain good asset quality and capital adequacy, while improving its franchise and market position.

Chong Hing Bank's ratings could be downgraded if it grows its balance sheet strongly and adopts a more aggressive risk-taking approach. The bank's standalone assessment could be adjusted lower if its asset quality metrics deteriorates, with impaired loans exceeding 2% of gross loans, or if its capital adequacy weakens with tangible common equity/RWA ratio falling below 10.5%.

A rapid increase in its Mainland exposures will render the bank more vulnerable to adverse economic developments in China, and could trigger a downward adjustment in its BCA. Nevertheless, evidence that the parent Yuexiu group is willing and able to support Chong Hing Bank could result in an affirmation of its deposit rating, even if the BCA is lowered.

- Dah Sing Bank

The affirmation of Dah Sing Bank's BCA and deposit ratings at a3 and A3 takes into account the bank's sound asset quality, adequate capitalization and good liquidity profile. The bank mainly serves small and medium enterprises and individuals in Hong Kong and southern China.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The bank's deposit ratings and BCA are already high and unlikely to be raised in the near term. For the BCA to be adjusted upward, the bank would have to strengthen its franchise and improve its capitalization.

The bank's ratings could be downgraded if strong asset growth weakens its capitalization, such that its Tier 1 ratio falls below 9.5%, or if impaired loans exceed 1.5% of gross loans. A significant impairment on the bank's investment in Bank of Chongqing can also lead to a rating downgrade for Dah Sing Bank.

- Industrial and Commercial Bank of China (Asia)

The upgrade of Industrial and Commercial Bank of China (Asia)'s BCA to baa1 from baa2 takes into account the parent Industrial and Commercial Bank of China's (deposits A1 stable, BCA baa2) May announcement that it will inject US$1.65 billion of equity into the bank. The capital injection amounts to one quarter of the bank's end-2014 book equity. The upgrade also takes into account Moody's expectation that the bank will consistently maintain a higher level of capitalization going forward.

Despite the bank's significant Mainland exposures, its asset quality metrics remained strong throughout 2014. A material proportion of the bank's Mainland exposures are backed by recourse to its parent and other large Chinese banks.

Moody's has downgraded Industrial and Commercial Bank of China (Asia)'s adjusted BCA to baa1 from a2. While Moody's believes that there is a very high probability of support from the bank's parent, the fact that the parent has a lower BCA means that this does not lift the adjusted BCA of Industrial and Commercial Bank of China (Asia) above its BCA. Moody's has also downgraded the bank's Basel II-compliant subordinated debt by one notch to Baa2. The Baa2 rating for the bank's subordinated debt is one notch below its adjusted BCA, and follows standard Moody's practice for rating banks' junior instruments.

At the same time, Moody's has affirmed the bank's long-term and short-term deposit ratings at A2/Prime-1. The bank's deposit ratings incorporate two notches of government support uplift, and reflect Moody's expectation of very high likelihood of indirect support from Mainland Chinese government that would flow through its parent.

Moody's assigned a A1(cr)/Prime-1(cr) CR Assessment to Industrial and Commercial Bank of China (Asia), which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

ICBC Asia's deposit ratings could be upgraded if the likelihood of external support increases.

ICBC Asia's BCA may be adjusted higher if the bank can maintain sound asset quality even amid further deterioration in the credit environment in Mainland China. Given the bank's close linkage with its parent, an upgrade in the parent's BCA may also lead to an upgrade in the bank's standalone assessment.

ICBC Asia's deposit ratings could be downgraded if the likelihood of parental support or indirect systemic support diminishes.

The bank's standalone assessment may be adjusted downward if its asset quality deteriorates due to aggressive and imprudent credit growth, with impaired loans rising above 2% of gross loans. A decline in the tangible common equity/RWA ratio below 10.5% may also trigger a review for downgrade.

- OCBC Wing Hang

The affirmation of OCBC Wing Hang Bank's BCA takes into account its good asset quality metrics, sound capitalization and conservative liquidity profile. OCBC Wing Hang's deposit ratings of Aa3 take into account expected very strong support from its parent Overseas-Chinese Banking Corp. Ltd.

WHAT COULD CHANGE THE RATINGS UP/DOWN

OCBC Wing Hang's Aa3 deposit ratings and a2 BCA are already high and are unlikely to be upgraded.

OCBC Wing Hang's deposit ratings may be downgraded if there is a weakening in parental support or if the parent's standalone credit assessment is adjusted downward.

OCBC Wing Hang's BCA can also be adjusted lower if asset quality deteriorates due to aggressive credit growth, with impaired loans rising above 2% of gross loans. A material decline in capitalization with tangible common equity/RWA ratio falling below 10.5% may also trigger a downgrade. A significant increase in the bank's exposure to Mainland China could also lead to a downward revision of its BCA.

- Wing Lung Bank

The affirmation of Wing Lung Bank's baa1 BCA takes into account its sound asset quality metrics and good profitability, although these are offset by potential risks arising from its relatively fast growth and increasing Mainland exposures. The bank maintains adequate capitalization and sound liquidity profile with low loan-to-deposit ratio. The affirmation of the bank's A3 deposit ratings takes into account expected high indirect support from the Chinese government that would flow through the parent China Merchants Bank (deposits Baa1 stable, BCA baa3), while the negative outlook on the bank's deposit ratings reflect concerns that the bank's asset quality may deteriorate due to its rapid loan growth and increasing Mainland exposures in recent years.

Moody's has downgraded Wing Lung Bank's adjusted BCA to baa1 from a3. While Moody's believes that there is a very high probability of support from the bank's parent, the fact that the parent has a lower BCA means that this does not lift the adjusted BCA of Wing Lung Bank above its BCA.. At the same time, Moody's has affirmed the bank's long-term and short-term deposit ratings at A3/Prime-2. The bank's deposit ratings incorporate one notch of government support uplift, and reflect Moody's expectation of high likelihood of indirect support from Mainland Chinese government that would flow through its parent.

Moody's assigned a A2(cr)/Prime-1(cr) CR Assessment to Wing Lung Bank, which is one notch above the bank's long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Since the rating outlook is negative, upward rating moves are unlikely. The outlook could be changed to stable if asset quality remains sound despite the slowdown in the Mainland economy.

Further strong growth in the bank's overall loans or Mainland exposures may also lead to a downgrade. Any weakening in capitalization due to strong asset growth, with the bank's tangible common equity ratio falling below 11%, or an increase in impaired loans above 1.5% may also trigger a downgrade.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

LIST OF AFFECTED RATINGS

Issuer: Bank of China (Hong Kong) Limited

.... BCA affirmed at a2

.... Adjusted BCA downgraded to a2 from a1

.... CR Assessment assigned at Aa2(cr)/P-1(cr)

.... Deposit rating affirmed at A3/P-1

.... Senior unsecured commercial paper affirmed at P-1

.... Senior unsecured debt affirmed at Aa3

.... Senior unsecured MTN program affirmed at (P)Aa3

.... Subordinated debt affirmed at A3

. Subordinated MTN program affirmed at (P)A3

.... Outlook for the bank is Stable

Issuer: Bank of East Asia, Limited

.... BCA affirmed at baa2

.... Adjusted BCA affirmed at baa2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Deposit rating affirmed at A2/P-1

.... Senior unsecured commercial paper affirmed at P-1

.... Senior unsecured debt affirmed at A2

.... Senior unsecured MTN program affirmed at (P)A2

.... Legacy subordinated debt affirmed at Baa3

.... PONV subordinated debt affirmed at Ba1 (hyb)

.... Subordinated MTN program affirmed at (P)Ba1

.... Outlook for the bank is Negative

Issuer: Bank of East Asia Ltd, Singapore Branch

.... Senior unsecured debt affirmed at A2

.... Senior unsecured MTN program affirmed at (P)A2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Outlook is Negative

Issuer: Innovate Holdings Limited

.... Pref. Stock Non-cumulative Preferred Stock affirmed at Ba3 (hyb) with no outlook

Issuer: China CITIC Bank International Limited

.... BCA upgraded to baa2 from baa3

.... Adjusted BCA downgraded to baa2 from baa1

.... CR Assessment assigned at A3(cr)/P-2(cr)

.... Long-term deposit/deposit notes confirmed at Baa1

.... Short-term deposit rating affirmed at P-2

.... Long-term deposit note/CD program confirmed at (P)Baa1

.... Short-term deposit note/CD program affirmed at (P)P-2

.... Senior unsecured MTN program confirmed at (P)Baa1

.... Dated legacy subordinated debt upgraded to Baa3 from Ba1

.... Dated subordinated MTN program upgraded to (P)Baa3 from (P)Ba1

.... Junior subordinated MTN program upgraded to (P)Ba1 from (P)Ba2

.... Non-cumulative Additional Tier 1 securities upgraded to Ba2 (hyb) from Ba3 (hyb)

.... Outlook for the bank is Stable

Issuer: China Construction Bank (Asia) Corp. Ltd.

.... BCA downgraded to baa1 from a3

.... Adjusted BCA downgraded to baa1 from a2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Deposit rating affirmed at A2/P-1

.... Senior unsecured debt affirmed at A2

.... Senior unsecured MTN program affirmed at (P)A2/(P)P-1

.... Deposit note/CD program affirmed at (P)A2/(P)P-1

.... PONV subordinated debt downgraded to Baa2 (hyb) from Baa1 (hyb)

.... Outlook for the bank is Stable

Issuer: Chiyu Banking Corporation, Ltd.

.... BCA affirmed at a3

.... Adjusted BCA downgraded to a2 from aa3

.... CR Assessment assigned at Aa3(cr)/P-1(cr)

.... Long-term deposit rating downgraded to A1 from Aa3

.... Short-term deposit rating affirmed at P-1

.... Outlook for the bank is Stable

Issuer: Chong Hing Bank Limited

.... BCA affirmed at baa2

.... Adjusted BCA affirmed at baa2

.... CR Assessment assigned at Baa1(cr)/P-2(cr)

.... Deposit rating affirmed at Baa2/P-2

.... Subordinated debt affirmed at Baa3

.... Non-cumulative Additional Tier 1 securities affirmed at Ba2 (hyb)

.... Outlook for the bank is Negative

Issuer: Dah Sing Bank, Limited

.... BCA affirmed at a3

.... Adjusted BCA affirmed at a3

.... CR Assessment assigned at A2(cr)/P-1(cr)

.... Deposit rating affirmed at A3/P-2

.... Senior unsecured MTN program affirmed at (P)A3

.... Legacy subordinated debt affirmed at Baa1

.... Undated subordinated MTN program affirmed at (P)Baa2

.... Junior subordinated debt affirmed at Baa2 (hyb)

.... PONV subordinated debt affirmed at Baa2 (hyb)

.... Outlook for the bank is Stable

Issuer: DBS Bank (Hong Kong) Limited

.... CR Assessment assigned at Aa2(cr)/P-1(cr)

Issuer: Hang Seng Bank Limited

.... CR Assessment assigned at Aa1(cr)/P-1(cr)

Issuer: Hongkong and Shanghai Banking Corp. Ltd (The)

.... CR Assessment assigned at Aa1(cr)/P-1(cr)

Issuer: Hongkong & Shanghai Bank.Corp. (Sydney)

.... CR Assessment assigned at Aa1(cr)/P-1(cr)

Issuer: Hongkong & Shanghai Banking Corp.(Singapore)

.... CR Assessment assigned at Aa1(cr)/P-1(cr)

Issuer: Hongkong and Shanghai Banking Corp Ltd (NZ)

.... CR Assessment assigned at Aa1(cr)/P-1(cr)

Issuer: Industrial & Comm'l Bank of China (Asia) Ltd.

.... BCA upgraded to baa1 from baa2

.... Adjusted BCA downgraded to baa1 from a2

.... CR Assessment assigned at A1(cr)/P-1(cr)

.... Deposit rating affirmed at A2/P-1

.... Senior unsecured debt affirmed at A2

.... Senior unsecured MTN program affirmed at (P)A2/(P)P-1

.... Commercial paper affirmed at P-1

.... Legacy subordinated debt downgraded to Baa2 from Baa1

.... Subordinated MTN program downgraded to (P)Baa2 from (P)Baa1

.... Outlook for the bank is Stable

Issuer: OCBC Wing Hang Bank Limited

.... BCA affirmed at a2

.... Adjusted BCA affirmed at aa3

.... CR Assessment assigned at Aa2(cr)/P-1(cr)

.... Deposit rating affirmed at Aa3/P-1

.... Dated subordinated MTN program affirmed at (P)A1

.... Undated subordinated debt affirmed at A2 (hyb)

.... Undated subordinated MTN program affirmed at (P)A2

.... Outlook for the bank is Stable

Issuer: Public Bank (Hong Kong) Limited

.... CR Assessment assigned at A2(cr)/P-1(cr)

Issuer: Shanghai Commercial Bank

.... CR Assessment assigned at A1(cr)/P-1(cr)

Issuer: Wing Lung Bank Limited

.... BCA affirmed at baa1

.... Adjusted BCA downgraded to baa1 from a3

.... CR Assessment assigned at A2(cr)/P-1(cr)

.... Deposit rating affirmed at A3/P-2

.... Senior unsecured MTN program affirmed at (P)A3

.... Subordinated debt affirmed at Baa2

.... Subordinated MTN program affirmed at (P)Baa2

.... Outlook for the bank is Negative

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 rating action on the support provider and in relation to each particular 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 rating action, and whose ratings may change as a result of this 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 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.

Sonny Hsu
Vice President - Senior Analyst
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
SUBSCRIBERS: (852) 3551-3077

Stephen Long
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (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
SUBSCRIBERS: (852) 3551-3077

Moody's concludes review on six Hong Kong banks
No Related Data.
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