Moody's affirms ICBC

Moody's Investors Service said it affirmed Industrial & Commercial Bank of China Ltd.'s (ICBC) A1/prime-1 long-term/short-term foreign-currency deposit ratings and D- bank financial strength rating.

The outlook on the bank's foreign-currency deposit rating is stable and the outlook on its bank financial strength rating is positive.

The action follows ICBC's announcement that it is planning to purchase a 20% stake in South Africa's Standard Bank Group Ltd.

The affirmation reflects the consistency of the bank's expansion strategy and the improvement in its financial position, Moody's said.

Moody's said it believes that the deal will not impact ICBC's current ratings. However, if the bank develops a more aggressive mergers and acquisitions strategy, this could exert downward pressure on its ratings, the agency added.

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