Moody’s might drop four Chinese companies

Moody's Investors Service said it placed the ratings of the following four Chinese financial leasing companies on review for upgrade:

• China Development Bank Financial Leasing (CDB Leasing): A1 long-term issuer rating;

• ICBC Financial Leasing Co., Ltd. (ICBC Leasing): A2 long-term issuer rating;

• CCB Financial Leasing Corp. Ltd. (CCB Leasing): A2 long-term issuer rating and

• CMB Financial Leasing Co., Ltd. (CMB Leasing): Baa2 long-term issuer rating.

The agency also affirmed the short-term issuer ratings of the four leasing companies. Their standalone credit strengths remain unchanged.

At the same time, Moody's placed the medium-term note program ratings and note ratings of Icbcil Finance Co. Ltd. and CCBL (Cayman) 1 Corp. Ltd., and the senior unsecured note rating of CCBL (Cayman) Corp. Ltd., on review for upgrade.

The actions for CDB Leasing, ICBC Leasing, CCB Leasing and CMB Leasing reflect a re-evaluation of their importance to the parent banks. Over the past few years, Moody's said it has observed that the connection between the leasing companies and their parent banks has further increased in the context of management control, business development and operations, which could result in their ratings being aligned with those of their parents.

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