S&P rates CMB Financial, CMB International BBB+

S&P said it was assigned a BBB+ long-term and A-2 short-term issuer credit ratings to CMB Financial Leasing Co. Ltd. and CMB International Leasing Management Ltd.

The outlook is stable.

The agency also said it assigned a cnA+ long-term and cnA-1 short-term Greater China regional scale ratings to the leasing companies.

CMB Financial is based in China and CMB International is based in Hong Kong.

The ratings reflect a view that both companies are core subsidiaries of China Merchants Bank Co. Ltd., so the ratings are equalized, S&P said.

China Merchants has a strong incentive and commitment to support the leasing subsidiaries in terms of capital, funding and liquidity when needed, the agency said.

The combined size of the leasing subsidiaries is still small within the scope of the bank’s overall book, however, S&P said.

But the leasing subsidiaries are viewed as ultimately core to the bank parent because of their close association and high integration with its operations, the agency added.

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