Moody's: Citic Bank notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Citic Bank International Ltd. (CBI)'s dated subordinated notes issued under its medium-term note program. The outlook on is stable.

"The rating on the dated subordinated notes is one notch below that of CBI's senior obligations. The notes constitute direct, unsecured and subordinated obligations of CBI and qualify as supplementary capital under current regulatory capital rules in Hong Kong," said Sonny Hsu, a Moody's vice president and senior analyst, in a news release.

"CBI's ratings reflect its good capitalization, revamped risk management framework and processes, and steadily-improving asset quality metrics, and take into account its exposures to potentially risky Chinese borrowers, high borrower concentration, and below peer-average profitability."

"The bank's deposit rating factors in very high parental support from its majority parent China Citic Bank Corporation Ltd," Hsu said.

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