S&P lifts Shanghai Rural view to positive

S&P said it revised the outlook on Shanghai Rural Commercial Bank Co. Ltd. to positive from stable.

The agency also said it affirmed the bank's BBB- long-term and A-3 short-term issuer credit ratings on the bank.

S&P also said it affirmed the bank's cnA- long-term and cnA-2 short-term Greater China regional scale ratings.

The outlook revision reflects the improving credit standing of the Shanghai municipal government, the agency said.

S&P also said it believes Shanghai's reforms of its state-owned enterprises will continue over the next 12- to 24-months, which will reduce the size of the city's contingent liabilities.

This strengthens the government's financial capacity to provide extraordinary support to the bank, if needed, the agency explained.

The rating is one notch above the bank's stand-alone credit profile of BB+ to reflect timely and sufficient extraordinary support from the Shanghai municipal government, S&P said.

If the credit standing of Shanghai municipal government strengthens and is sustained at a higher level, the ratings could be raised to two notches, holding other things equal, the agency said.

© 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.