Fitch affirms Export-Import Bank of China

Fitch Ratings said it affirmed Export-Import Bank of China's long-term foreign-currency issuer default rating at A+ and short-term issuer default rating at F1.

The outlook is stable.

The bank's rating is equivalent to that of the Chinese sovereign, reflecting its quasi-sovereign status as a state-owned policy bank and its important role in national export and import development, Fitch said.

Driven by booming trade and economic growth, the bank experienced robust loan growth of 29% per year from 2002 through 2007, the agency said.

Its weak performance is largely attributable to low preferential interest rates extended on policy loans, Fitch said, and higher funding costs resulting from a heavy reliance on bond issuance.

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