S&P ups China Development Financial

S&P said it upgraded China Development Financial Holding Corp.’s ratings, including the issuer rating to BBB from BBB- and revised its outlook to stable from positive. The agency also upgraded the company’s subsidiaries, including KGI Bank to BBB+ from BBB.

“Cdfhc group's credit strength has improved following the acquisition of the life insurer which could allow the group to lower its financial leverage gradually over the next two years. China Life's credit profile remains solid and supported by improved capitalization to buffer against potential market volatility and foreign exchange risks,” S&P said in a press release.

The outlook reflects the view that China Life, as a core operating unit, will dominate the overall group credit profile. “Therefore, the ratings on the various group units will move in tandem with ratings on China Life,” the agency said.

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