S&P lowers three Chinese banks

S&P said it lowered the long-term credit rating to A+ from AA- and the short-term rating to A-1 from A-1+ on DBS Bank (China) Ltd., Hang Seng Bank (China) Ltd., and HSBC Bank (China) Co. Ltd.

The outlooks are stable.

The agency said it lowered the ratings, namely on DBS Bank, following S&P’s downgrade on China (A+/stable/A-1) on Sept. 21.

“We believe these banks, which primarily operate in China, are unlikely to avoid default if China were to default on its sovereign debt. Therefore, our ratings on these banks are capped by our sovereign credit ratings on China,” the agency said in a news release.

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