Fitch upgrades China Citic Bank

Fitch Ratings said it upgraded the long-term issuer default rating of China Citic Bank International Ltd. to BBB+ from BBB.

The agency also said it affirmed the issuer default ratings of three other Hong Kong banks, including Hang Seng Bank Ltd. at A+, Bank of China (Hong Kong) Ltd. at A and China Construction Bank (Asia) Corp. Ltd. at A.

The outlooks on all four banks are stable.

The upgraded rating reflects a view that China Citic Bank will remain sufficiently resilient to overcome the headwinds from slower economic growth and strong competition as their loss-absorption buffers and risk discipline are commensurate with their risk appetite, Fitch explained.

All of the banks benefit from operational support from their respective parents, which adds to their franchise strengths, albeit to varying levels, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.