S&P ups China Merchants Bank view to positive

Standard & Poor's said it revised the outlook on the BBB long-term counterparty credit rating on China Merchants Bank Co. Ltd. to positive from stable and affirmed the rating. The agency also said it affirmed the A-2 short-term counterparty credit and C bank fundamental strength ratings/

The agency said it revised the outlook to reflect the bank's stronger-than-expected financial performance throughout September 2010 and a view that the bank is likely to further strengthen its credit profile with sustained sound profitability on a risk-adjusted basis.

The agency said it expects the bank's internally generated capital to further strengthen its capitalization, despite its robust credit expansion and inherent credit risks in the Chinese banking system.

The bank's asset quality is sound and it has had a good track record of maintaining relatively low credit costs over the past decade, which compares favorably with that of its domestic peers and many regional peers, S&P said.

These strengths are tempered by its modest, though significantly enhanced capitalization and the moderately high risk credit market in China, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.