China Merchants Bank’s Ratings Affirmed with a Stable Outlook

China Merchants Bank’s 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 China Merchant s Bank (CMB) at ‘BBB’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed CMB’s B ank S tandalone R ating (BSR) and Core Financial Strength (CFS) rating at ‘bbb-’. The Outlook for the ratings remains Stable.

The Bank’s LT FCR is set one notch above the BSR based on an Extraordinary Support Level (ESL) of Moderate. The ESL takes into account the moderate level of indirect government ownership, as well as the medium size of the Bank’s balance sheet. Although there is no direct government ownership, the Chinese government has a fair track record of arranging support for ailing non-government banks – even if…