S&P: Bank of China unaffected

Standard & Poor's said its ratings on Bank of China Ltd. (BOC, BBB+/stable/A-2) would not be affected by the bank's global IPO as the impact of the offering on the bank's overall credit profile has already been factored into them.

S&P said that the IPO will strengthen BOC's capitalization significantly, raising about $9.8 billion in equity through the issue of new common shares.

Although expected strong medium-term growth is likely to reduce the bank's capitalization, the agency said it expects BOC to maintain adequate capitalization to support this projected growth and provide a reasonable cushion against volatility in the quality of its assets, which include a decreasing but still large pool of special mention loans.

© 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.