Moody’s rates Bank of Nanjing Baa3

Moody's Investors Service said it assigned first-time ratings to the Bank of Nanjing Co., Ltd., including Baa3 long-term local- and foreign-currency deposit ratings, P-3 short-term local- and foreign-currency deposit ratings, Ba2 baseline credit assessment and Ba2 adjusted baseline credit assessment.

The outlook is negative, in line with the outlook on China's Aa3 sovereign rating and reflecting pressures on the bank's baseline credit rating, the agency said.

The long-term and short-term counterparty risk assessments assigned to Bank of Nanjing are Baa3(cr) and P-3(cr), Moody’s said.

The ratings include a two-notch uplift based on an assumption of a high level of government support for the bank in times of need, the agency said.

The ratings also reflect the bank's rapid growth despite China's economic slowdown, Moody’s said.

Mitigating these risks is the fact that the bank's rapid growth has been largely funded by deposit growth rather than wholesale funds, the agency said.

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