Fitch assigns Citic Bank notes BBB

Fitch Ratings said it assigned an expected BBB rating to Citic Bank International Ltd.'s proposed lower tier 2 subordinated notes due June 2020 issued under the bank's $2 billion medium-term notes program. The rating is contingent upon the receipt of final documents. The notes represent direct, unsecured and subordinated obligations of the bank and qualify as supplementary capital under Hong Kong's banking ordinance.

The expected rating is one notch below the bank's BBB+ long-term foreign-currency issuer default rating, Fitch said.

The rating reflects the bank's sound capitalization and good long-term business prospects following ownership changes, the agency said, and these developments enable it to better coordinate strategy and resources with its parent bank and improve its risk management and product capability.

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