Fitch affirms Bank of China (Hong Kong)

Fitch Ratings said it affirmed Bank of China (Hong Kong) Ltd.'s long-term foreign-currency issuer default rating at A, short-term foreign-currency issuer default rating at F1 and its lower tier-2 subordinated notes at A-.

The ratings are primarily based on its strong franchise in Hong Kong with a leading market position, good core profits, sound loan quality and strong capital adequacy, Fitch said.

The ratings also benefit from the high probability of institutional support given its strategic importance to its parent, Bank of China, which owns 66% of the bank's holding company, the agency said.

The Bank of China (Hong Kong) is increasingly leveraging on its parent's extensive network of contacts in mainland China and its role as the only renminbi clearing bank in Hong Kong as the main drivers for future growth, Fitch said.

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