Moody's ups three China banks

Moody's Investors Service said it affirmed the A1/prime-1 long- and short-term foreign-currency deposit ratings of Industrial & Commercial Bank of China, China Construction Bank and Bank of China. The agency also said it upgraded the bank financial strength ratings to D+/Ba1 for Industrial & Commercial Bank of China, to D+/Ba1 for China Construction Bank and to D/Ba2 for Bank of China.

The outlook is positive, reflecting the positive outlook on China's sovereign rating.

The ratings reflect the bank's financial strength coupled with ongoing expectations of strong government support if necessary, Moody's said.

The upgrades reflect ongoing strength in the Chinese macro-economy, continuing resilience in capital strength, growing track record in improving corporate governance and risk management practices and an expectation that the banks are well placed to manage inevitable rises in non-performing loans, the agency said.

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