Moody’s lifts China Guangfa deposits

Moody's Investors Service said it upgraded China Guangfa Bank Co., Ltd.'s long-term and short-term foreign currency deposit ratings to Baa3/P-3 from Ba1/NP.

The bank's baseline credit assessment (BCA) was affirmed at ba3, adjusted BCA was upgraded to ba1 from ba3 and counterparty risk assessment was upgraded to Baa2(cr)/P-2(cr) from Ba1(cr)/NP(cr).

The outlook is stable.

The actions conclude the review initiated on Oct. 17. The review was triggered by China Life Insurance Co. Ltd.'s (financial strength Aa3 negative) completion of the acquisition of an additional 23.686% stake in China Guangfa in August 2016, which brought its total stake in the bank to 43.686%.

Moody’s said the Baa3 rating reflects the company’s standalone BCA of ba3, and three notches of uplift, due to increasing external support. In particular, the agency said it incorporated two notches of affiliate support and one notch of government support in the bank's long-term deposit rating.

© 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.