S&P lifts BoCom view to stable

S&P said it revised the outlooks on Bank of Communications Co. Ltd. (BoCom) and its core subsidiary, Bank of Communications Financial Leasing Co. Ltd., to stable from negative.

The agency said it affirmed the companies’ A- long-term, A-2 short-term issuer credit ratings and the cnA-1 short-term Greater China regional scale ratings.

In line with the outlook revision, S&P said it raised the long-term Greater China regional scale on the entities to cnAA from cnAA-.

S&P also said it affirmed the A- and A-2 issue ratings and cnA-1 short-term Greater China regional scale rating on various debts that they issued or guaranteed.

The agency also said it raised the long-term Greater China regional scale rating on the debts to cnAA from cnAA-.

The outlook revision reflects a view that Bank of Communications’ improved capitalization will strengthen the buffer against the negative economic risk trend in China and a potentially weaker capability of the government to provide extraordinary support, S&P said.

The agency said it expects the bank’s profitability to weaken over the next two years due to the bank's narrowing net interest margin and increasing credit costs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.