Shanghai Pudong Development Bank – Ratings Affirmed

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 Shanghai Pudong Development Bank (SPDB or the Bank) at ‘BBB+’ and ‘A2’, respectively. At the same time, CI Ratings has affirmed SPDB’s Bank Standalone Rating (BSR) of ‘bbb-’, Core Financial Strength (CFS) rating of ‘bbb-’ and Extraordinary Support Level (ESL) of High. The Outlook for the ratings is Stable.

SPDB’s LT FCR is set two notches above the BSR based on the ESL of High. The latter reflects the Bank’s domestic systemically important bank status, as well as the Chinese government’s strong track record of extending assistance to troubled banks in case of need. It also underscores the government’s ample resources and policy flexibility to support the banking sector as a whole, notwithstanding a decline in its fiscal position due to the economic slowdown seen in recent years.

The BSR is…