Moody's Investors Service on Nov 7 affirmed deposit ratings for China’s Big Four banks and upgraded the credit assessment of one of them, as the sector reels from narrowed interest margins and rising bad loans amid economic uncertainty.
In a press release, the international rating agency maintained the long-term and short-term deposit ratings for the four lenders, and upgraded the baseline credit assessment for the Agricultural Bank of China from Ba3 to Ba2.
The other three banks are the Industrial and Commercial Bank of China, China Construction Bank, and Bank of China. ABC’s financial-strength rating was also improved, from D- to D.
"The affirmation of the ratings of ICBC, CCB and BOC with a stable outlook follows a review of the latest economic and regulatory developments in China,” said Hu Bin, a vice president and senior analyst of Moody’s.
“It reflects our assessment that these banks' performances, especially in terms of asset quality and profitability, will prove resilient in the current challenging operating environment."
He acknowledged the three have recorded increases in delinquent and special-mention loans since late 2011 as a result of China's economic slowdown, amid margin pressure as parts of their loan books have yet to be repriced at lower rates after the authorities’ moves to further liberalize interest rates.
Landmark building should respect the public's feeling
Feedback
RSS
