Fitch rates Postal Savings AT1 notes BB+

Fitch Ratings said it affirmed Postal Savings Bank of China Co Ltd.'s long-term issuer default rating of A+, short-term issuer default rating of F1+ and viability rating of BB+.

The outlook is stable.

Fitch also said it assigned a rating of BB+ to the bank's Basel III-compliant additional tier 1 (AT1) notes.

The bank's ratings are strongly linked to China's sovereign rating, reflecting the extremely high probability of the central government supporting the bank if needed, Fitch said.

Postal Savings was established in 2007 as a commercial bank in China, but it effectively performs several policy-related functions and operates a unique business model through the use of direct outlets, the agency said.

Regulatory oversight is conducted by the same department within the China Banking and Insurance Regulatory Commission that regulates policy institutions, the agency added.

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