Fitch eyes China policy banks negatively

Fitch Ratings said it revised the outlooks on three Chinese policy banks to negative from stable and affirmed their long-term foreign-currency issuer default ratings and government support ratings.

The banks are China Development Bank, the Export-Import Bank of China and the Agricultural Bank of China.

“The three policy banks' IDRs are driven by their GSRs, which are aligned with China's sovereign ratings. This reflects Fitch's view of a very high probability of the central government supporting the banks in a timely manner in the event of stress. The outlook revision from stable to negative for the banks mirrors the same outlook revision on China,” Fitch said in a press release.

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