S&P maintains Ping An on watch

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

The ratings were originally placed on negative watch in September 2010.

The watch continues as the agency said it assesses the implications of a proposal by its parent to subscribe to new shares in Shenzhen Development Bank Ltd. Co., S&P said.

The agency said it believes the transaction could put pressure on the group's capitalization and overall financial flexibility.

S&P said Shenzhen Development Bank's credit quality is uncertain and has a weak track record.

But the transaction is unlikely to drain the group's cash or have an immediate material financial impact on Ping An, the agency added.

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