S&P confirms Chinese banks

Standard & Poor's said its ratings and outlooks on four Chinese government-related commercial banks remain unchanged following an outlook revision on the long-term sovereign rating on the People's Republic of China (A/Positive/A-1).

The banks are Industrial and Commercial Bank of China Ltd. (BBB+/Positive/A-2), Bank of China Ltd. (BBB+/Positive/A-2), China Construction Bank Corp. (BBB+/Positive/A-2) and Bank of Communications Co. Ltd. (BBB/Stable/--).

S&P said it regards the four banks as government-related entities. The ratings on the banks incorporate notches of uplift to reflect potential government support and thus possible positive rating action over the near term is more likely to be driven by the banks' own efforts to improve their financial positions, corporate risk cultures and risk management capabilities against this backdrop of improving banking industry country risk, the agency said.

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