Moody's: No change for China Development Bank

Moody's Investors Service said the upcoming commercialization reform of China Development Bank will not likely have any immediate rating impact on the bank, which currently has an A2 foreign-currency senior unsecured bond rating with a positive outlook.

The reforms, which are expected to begin soon, will likely focus on the corporatization of the bank's ownership, improvements to its corporate governance and risk management and increasing the transparency of its policy-related operations, Moody's said.

Moody's said the reform of the bank is consistent with the overall accelerated reform trends in the Chinese banking sector. Based on the type of reform happening to China Development, the bank should continue to enjoy strong government support even after its reform. Moody's also said it believes its A2 rating will probably not be affected in the near to intermediate term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.