Moody's concludes review of Hong Kong banks

Moody's Investors Service said it concluded its review of several Hong Kong banks that began March 17 and took the following rating actions, among others:

• Upgraded China Citic Bank International Ltd.’s dated legacy subordinated debt to Baa3 from Ba1 and non-cumulative additional tier 1 securities to Ba2 (hyb) from Ba3 (hyb);

• Downgraded China Construction Bank (Asia) Corp. Ltd.’s point of non-viability subordinated debt to Baa2 (hyb) from Baa1 (hyb) and affirmed its senior debt at A2; and

• Downgraded Industrial & Commercial Bank of China (Asia) Ltd.’s legacy subordinated debt to Baa2 from Baa1 and affirmed its senior debt at A2.

The outlook for each bank is stable.

The agency said the rating actions reflect Hong Kong's strong macro profile, and to a lesser extent, China's moderate macro profile; the Hong Kong banks' generally strong core financial metrics; and changes in affiliate and government support considerations under Moody's revised banks methodology.

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