Fitch hikes Industrial Bank to BBB-

Fitch Ratings said it raised the long-term foreign-currency issuer default rating for Industrial Bank Co. Ltd. to BBB- from BB+.

The bank has “increased systemic importance above that of other mid-tier banks,” and would have a high probability of state support in cases of financial distress, Fitch said in a press release.

“IND has shifted its focus back to bank lending and reduced its non-loan credit exposure; loans represented 44% of assets at end-2018, up from 37% in 2013. It is now China's second-largest joint stock commercial bank by assets and leads the market in the Fujian region. IND also benefits from strong linkage with the Fujian local government, which is the bank's largest shareholder with an 18.78% stake,” said Fitch.

The outlook is stable.

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