Moody’s upgrades 7 Chinese banks’ long-term deposit and debt ratings
Moody’s Investors Service has upgraded the long-term deposit and debt ratings, from A2 to A1, for 7 Chinese banks: Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China, China Development Bank, Export-Import Bank of China and HSBC Bank (China) Company.
The action follows Moody’s earlier decision to upgrade both China’s long-term foreign currency sovereign rating and the ceiling for foreign currency bank deposit rating from A2 to A1.
The upgrade of the 4 state-controlled commercial banks including Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), China Construction Bank (CCB) and Agricultural Bank of China (ABC), reflects Moody’s view that the government is likely to maintain majority control and continue to provide very strong implicit support to these banks because of their systemic importance. Their bank financial strength ratings (BFSRs) remain unchanged. — www.theasianbanker.com (July 27 2007)–