Fitch ups Shanghai Pudong to BBB

Fitch Ratings said it affirmed the BBB long-term foreign-currency issuer default ratings of China Merchants Bank Co., Ltd., China Citic Bank Corp. Ltd. and China Everbright Bank, and upgraded Shanghai Pudong Development Bank's issuer default rating to BBB from BBB-.

All outlooks are stable.

The viability ratings of all four banks were also affirmed.

Fitch said the upgrade of Shanghai Pudong’s issuer default rating is underpinned by a revision in its support rating floor (SRF) to BBB from BBB-, as the agency now perceives a higher support propensity at the bank on the back of its tighter relationship with the Shanghai State-Owned Assets Supervision and Administration Commission (Shanghai SASAC) of the Shanghai Municipal Government.

After the upgrade, all four mid-tier banks have support ratings of 2 and SRFs of BBB, indicating a high probability of state support, if needed.

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