S&P: Shanghai Rural bank BBB-

Standard & Poor’s said it assigned a BBB- long-term and A-3 short-term issuer credit ratings to Shanghai Rural Commercial Bank Co. Ltd.

The outlook is stable.

S&P also said it assigned cnA- long-term and cnA-2 short-term Greater China regional scale ratings to the bank, along with a BB+ stand-alone credit profile.

The ratings reflect the bank’s established niche position in Shanghai’s metropolitan area and realistic growth strategy, which underpin its adequate capitalization, the agency said.

The ratings also consider its solid funding and liquidity profile, S&P said.

However, the bank’s significant credit concentration in property development and construction and developing credit-risk management could expose it to persistently higher credit losses than rated domestic peers, S&P said.

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