Fitch affirms Banco Weng Hang

Fitch Ratings said it affirmed Banco Weng Hang's long-term issuer default rating at BBB+ and short-term issuer default rating at F2.

The outlook is negative.

The bank remains comfortably capitalized and, coupled with its satisfactory but declining profitability, this should provide it with an adequate buffer to absorb higher expected credit costs, Fitch said.

The main pressures stem from further economic contraction in Macao and neighboring Hong Kong, the agency said, and from existing oversupply in the country's previous growth areas such as casinos, hotels, shopping malls and upmarket residential apartments due to declining tourist activity.

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