Moody's may raise some Hong Kong banks

Moody's Investors Service said it placed the debt, deposit and bank financial strength ratings of several banks in Hong Kong on review for possible upgrade.

The review reflects the strengthening of these banks' financials and prospects, and will focus on the ability of each bank to respond to changes in Hong Kong's operating environment, its respective market positioning and strategy to deal with opportunities and challenges within an increasingly competitive and consolidating banking sector.

Factors supporting an upgrade include sustainable core earnings growth, effective cost containment, a sound capital structure - not withstanding expansion plans, and implementation of sound risk management.

Banks affected include Bank of East Asia Ltd. with long-term and short-term deposit ratings of Baa1/P-2 and a bank financial strength rating of C-; East Asia Financial Holding (BVI) Ltd. with a foreign currency backed subordinated debt rating of Baa2; Citic Ka Wah Bank with foreign and domestic currency long-term and short-term deposit ratings of Baa2/P-3, a bank financial strength rating of D+ and a foreign currency senior unsecured rating of Baa2; CKWB (Cayman Islands) Ltd. with a foreign currency backed subordinated debt rating of Baa3; and CKWH-UT2 Ltd. with a foreign currency backed subordinated debt rating of Baa3.

Also affected are Dah Sing Bank Ltd. with long-term and short-term deposit ratings of Baa1/P-2, a bank financial strength rating of C-, a foreign currency senior unsecured MTN rating of Baa1, a subordinated debt rating of Baa2 and a foreign currency junior subordinated MTN rating of Baa2; Dah Sing MTN Financing Ltd. with a domestic currency backed senior unsecured MTN rating of Baa1, a domestic currency backed subordinated MTN rating of Baa2, and a domestic currency backed junior subordinated MTN rating of Baa2.

Also affected are Dah Sing SAR Financial Ltd. with a domestic currency backed subordinated MTN rating of Baa2 and a domestic currency backed junior subordinated MTN rating of Baa2; Industrial and Commercial Bank of China (Asia) Ltd. with a bank financial strength rating of D; Shanghai Commercial Bank Ltd. with long-term and short-term bank deposit ratings of A3/P-2 and a bank financial strength rating of C; Wing Hang Bank Ltd. with long-term and short-term bank deposit ratings of Baa1/P-2 and a bank financial strength rating of C-; Wing Hang Financial Holding (BVI) Ltd. with a domestic currency backed subordinated debt rating of Baa2; and Wing Lung Bank Ltd. with long-term and short-term bank deposit ratings Baa1/P-2 and a bank financial strength rating of C.

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