Moody's affirms ICBC

Moody's Investors Service said it affirmed Industrial & Commercial Bank of China Ltd. (ICBC)'s A1/prime-1 long-term and short-term foreign-currency deposit ratings and D- bank financial strength rating following news that it plans to purchase 79.9% of Seng Heng Bank in Macau. The bank's foreign-currency deposit ratings continue to have a stable outlook, while the bank financial strength rating maintains its positive outlook.

The affirmation reflects the small scale of the transaction, the bank's financial flexibility and the consistency of its expansion strategy, Moody's said.

Given that Seng Heng Bank commands a market share of about 20% in terms of loans in Macau, the acquisition would substantially increase Industrial & Commercial Bank's presence in that region, the agency added.

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