Fitch ups three Chinese banks

Fitch Ratings said it upgraded the individual ratings of the Bank of China (BOC), China Construction Bank (CCB) and the Bank of Communications (BCOM) to D from D/E.

At the same time, Fitch also assigned China Construction Bank a long-term foreign currency rating of A- with a stable outlook and a short-term foreign currency rating of F2. The agency said it also affirmed its other ratings on these banks as follows.

While the agency is generally satisfied with the adequacy of the banks' current financial positions, Fitch noted it nonetheless sounded a note of caution on profits and capital adequacy.

"We still consider the profitability and capital levels of these banks as somewhat limited in the light of their emerging market environment," said David Marshall, head of financial institutions for the Asia-Pacific region.

"Furthermore, we note that the improvement in the banks' balance sheet strength was largely achieved by one-off assistance from the government and that concerns over asset quality going forward remain."

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