Moody's rates E. Sun Bank China Baa2

Moody's Investors Service said it assigned first-time local-currency and foreign-currency long-term deposit ratings of Baa2 and short-term deposit ratings of P-2 to E. Sun Bank (China) Ltd.

The bank's baseline credit assessment is assigned at Ba2 and adjusted baseline credit assessment at Baa2.

Its counterparty risk assessment is assigned at Baa1(cr)/P-2(cr) and its local-currency and foreign-currency counterparty risk ratings are assigned at Baa1/P-2.

The outlook is stable.

The ratings consider three notches of uplift based on the very high level of affiliate support from E. Sun Commercial Bank, Ltd., which owns 100% of E. Sun China, Moody's explained.

The bank has had rapid loan growth since its incorporation , leading to latent asset risk and weak internal capital generation capability, the agency said.

Moody's said it expects low – but stable – profitability in the next two years with a heavy reliance on its parent and market funding.

© 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.