S&P rates ICBC BBB+

Standard & Poor’s said it assigned a BBB+ long-term issue credit rating to the tier-2 capital notes of Industrial and Commercial Bank of China Ltd. (ICBC)

The agency also said it assigned a cnAA- long-term Greater China regional scale rating to the notes.

The rating is two notches lower than the issuer credit rating on the bank. One-notch downward adjustment is for subordination and one notch is for the issue’s principal write-down feature, the agency said.

The bank is a government-related entity for which there is very high likelihood of extraordinary government support in case of distress, S&P said.

Financial support from the Chinese government could prevent activation of a non-payment of interest trigger on the bonds, the agency said.

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