Moody’s: ICBC Standard outlook to stable

Moody's Investors Service said it affirmed ICBC Standard Bank plc's long- and short-term deposit ratings at Baa3/Prime-3 and the issuer and subordinated debt ratings at Baa3 and Ba1, respectively.

At the same time, the agency assigned a baseline credit assessment (BCA) of b1, an adjusted BCA of baa3 and counterparty risk assessments of Baa2(cr)/Prime-2(cr).

The outlook on the bank's deposit and issuer ratings was changed to stable from negative.

For its own business reasons, Moody's terminated the outlook on ICBC Standard’s subordinated debt rating.

Moody's said the actions follow a change in the methodology used to assess ICBC Standard; specifically to the banks methodology from the Global Securities Industry methodology.

“The change in methodology was driven by an analysis of ICBC SB's business model, regulatory framework and the agency's assessment of the most appropriate methodology to use to evaluate the bank's credit profile,” the agency said in a news release.

“The affirmation of the ratings was driven by the application of the Advanced Loss Given Failure (LGF) analysis which was not applied under the previous methodology.”

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