Moody's cuts China banks view to stable

Moody's Investors Service said it changed to stable from positive the outlook for China's four largest banks.

Moody's also said it affirmed the bank's ratings, including their A1 long-term deposit and senior unsecured ratings.The four banks are Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China.

The likelihood of an upgrade in the banks' ratings has diminished in view of their current challenges, which lead to the outlook revision, Moody's said.

The four banks' fundamental stand-alone bank financial strength ratings are in the D range, mapped to the Ba category on the traditional global rating scale, the agency said.

Given the important role that these major state-owned Chinese banks play in supporting government policy initiatives, Moody's said it continues to assume a high degree of government support for their ratings.

Due to the significant gap between their stand-alone financial strength and the government's credit standing, the agency said any upgrade of the banks' debt and deposit ratings are unlikely in the absence of improvements in their underlying credit fundamentals.

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