Moody’s rates China International Baa1

Moody’s Investors Service said it assigned a Baa1 long-term issuer rating and a prime-2 short-term issuer rating to China International Capital Corp. Ltd.

The outlook is negative, in line with the negative outlook on China’s Aa3 sovereign rating, given that the company’s rating benefits from three notches of government support, Moody’s said.

The ratings reflect China International’s strong investment banking franchise, high proportion of revenue from fee businesses that have low risk exposures and low level of proprietary equity investment, the agency said.

Offsetting these credit strengths are the risks arising from the rapid increase of China International’s total assets and fixed-income securities investments, Moody’s said.

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