S&P gives Asia banks fundamental strength ratings

Standard & Poor's said it assigned bank fundamental strength ratings on 110 banks in the Asia-Pacific region.

The ratings complement S&P's counterparty credit ratings on banks by providing an indicator of the intrinsic credit profile of the bank. indicating the prospect that a bank would need to seek external assistance in the event of financial distress.

The bank fundamental strength rating does not presume any potential capital contribution from the regulator or government.

Not surprisingly, the strongest banks, denoted by having ratings of B+ assigned to them, are located in the more stable banking systems in Australia, Hong Kong, Singapore and New Zealand.

Next in line are some of the leading banks in Japan, Malaysia and Taiwan, with ratings of B.

A substantial number of Asia-Pacific banks reside at the C+ level, just above the midpoint of the nine-point bank fundamental strength rating scale. These include the majority of rated banks in Hong Kong, Japan, Korea and Taiwan.

The remaining categories of C and below contain those banks in the developing markets of China, India, Indonesia, Philippines and Thailand.

Assigned ratings include:

CHINA: Bank of China D+; Bank of Communications D+; China Construction Bank D+; Industrial and Commercial Bank of China D.

HONG KONG: Bank of China Ltd. C+; Bank of East Asia Ltd. C+; Dah Sing Bank Ltd. C+; DBS Bank Ltd. B; Fubon Bank Ltd. C+; Hang Seng Bank Ltd. B+; Hongkong and Shanghai Banking Corp Ltd. B+; Wing Hang Bank Ltd. C+.

INDIA: Icici Bank Ltd. C; Industrial Development Bank of India D+; State Bank of India C.

INDONESIA: P.T. Bank Danamon Indonesia Tbk D+; P.T. Bank Internasional Indonesia D; P.T. Bank Mandiri (Persero) D+; P.T. Bank Negara Indonesia (Persero) Tbk D.

MALAYSIA: AmMerchant Bank Bhd C; Bumiputra-Commerce Bank Bhd C+; Commerce International Merchant Bankers Bhd C; Malayan Banking Bhd B; Public Bank Bhd B; RHB Bank Bhd C.

PHILIPPINES: Banco de Oro Universal Bank D; Equitable-PCI Bank Inc. D; Metropolitan Bank & Trust Co. D; Rizal Commercial Banking Corp. D.

SINGAPORE: DBS Bank Ltd. B+; United Overseas Bank Ltd. B+; Oversea-Chinese Banking Corp. Ltd. B+.

TAIWAN: Bank of Taiwan C+; Bank SinoPac C+; Cathay United Bank Co. Ltd. C+; Chiao Tung Bank C+; China Development Industrial Bank B; Chinatrust Commercial Bank C+; Farmers Bank of China D+; First Commercial Bank Ltd. C+; International Commercial Bank of China B; Land Bank of Taiwan C+; Taipei Fubon Commercial Bank Co. Ltd. C+.

THAILAND: Bangkok Bank Public Co. Ltd. C; Bank of Ayudhya Public Co. Ltd. C; Bank of Asia Public Co. Ltd. D+; Kasikornbank Public Co. Ltd. C; Krung Thai Bank Public Co. Ltd. D+; Siam Commercial Bank Public Co. Ltd. C.

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