S&P affirms Ping An

Standard & Poor's said it affirmed the A long-term local-currency counterparty credit and insurer financial strength ratings on Ping An Property & Casualty Insurance Co. of China Ltd.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in September 2010.

The outlook is stable.

S&P also said it affirmed the cnAA+ Greater China credit scale rating on the company and removed it from CreditWatch, where it was placed with negative implications in April.

The affirmations follow news that the regulator has fully approved a major asset restructuring at the company's parent, Ping An Insurance (Group) Co. of China Ltd., S&P said.

Under the proposal, Ping An Group can use its existing holdings in Ping An Bank and cash to subscribe to shares in Shenzhen Development Bank Co. Ltd. The group will be a majority shareholder of Shenzhen Development Bank once the transaction is completed.

S&P said this majority stake has lowered Ping An's credit profile given the bank's historically weak financial and business profiles.

But, the agency said a major stake in the bank could help Ping An to further diversify its business and improve product offerings.

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