Moody’s changes Chinese bank subsidiaries to negative

Moody's Investors Service said it changed the outlook for the Hong Kong and Macau subsidiaries of Chinese banks to negative from stable.

The banks include: Bank of China (Hong Kong) Ltd., Chiyu Banking Corp., Ltd., China Construction Bank (Asia) Corp. Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Wing Lung Bank Ltd., China Citic Bank International Ltd. and Industrial and Commercial Bank of China (Macau) Ltd.

At the same time, the agency affirmed the baseline credit assessments (BCA), adjusted BCAs, counterparty risk assessments (CR assessments), and all ratings of these banks at their current levels.

Nanyang Commercial Bank, Ltd.'s (deposits A1 review for downgrade, BCA baa1 review for downgrade) ratings are currently on review for downgrade, and its ratings are not impacted by this action.

These actions follow similar rating actions on these banks' Mainland Chinese parents and the change in outlook to negative from stable for the Chinese government (Aa3 negative).

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