Hua Xia Bank – Ratings Affirmed with a Stable Outlook

Ref: CN028 2 2 CRA00- 0 1 4 August 2023

Hua Xia Bank – 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 (ST) FCR of Hua Xia Bank (HXB) at ‘BBB-’ and ‘A3’, respectively. At the same time, CI Ratings has affirmed HXB’s Bank Standalone Rating (BSR) of ‘bb’, Core Financial Strength (CFS) rating of ‘bb’, and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR is Stable.

HXB’s LT FCR is set two notches above the BSR due to the High ESL. The latter reflects the Bank’s status as a systemically important bank in China and its ownership by a number of state-owned entities including Shougang Corporation (SC), which is one of the largest state-owned steel makers in mainland China. T he Chinese government also has a strong track record…