Moody’s rates ICBC notes Baa3

Moody’s Investors Service said it assigned a Baa3 (hyb) rating to the proposed Basel III-compliant tier 2 capital notes to be issued by Industrial and Commercial Bank of China Ltd. (ICBC).

The rating on the notes is one notch below ICBC’s Baa2 adjusted baseline credit assessment, Moody’s said.

While the bank is majority-owned by the Chinese government, the agency said it positioned the rating one notch below the bank’s baseline rating because it believes that Chinese authorities would likely exhaust other remedies before declaring the bank to be non-viable, meaning there is less uncertainty than other jurisdictions about the timing of a principal write-down.

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