Bank of Communications – Ratings Affirmed with a Stable Outlook

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Bank of Communications (BoCom or the Bank) at ‘A-’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed BoCom’s Bank Standalone Rating (BSR) of ‘bbb-’, Core Financial Strength (CFS) rating of ‘bbb-’, and Extraordinary Support Level (ESL) of Very High. The Outlook for the LT FCR and BSR is Stable.

BoCom’s LT FCR is set three notches above the BSR based on an ESL of Very High, reflecting our view that the authorities would have the financial capacity and willingness to assist BoCom if required. The ESL takes into account the Bank’s D-SIB status and the high level of state ownership.

The Bank’s BSR is derived from a CFS rating of ‘bbb-’ and an Operating Environment Risk Anchor (OPERA) of ‘bbb-’, indicating modest risk. This balances the economy’s high…