S&P ups China Development

Standard and Poor's said it raised the long-term counterparty credit rating on China Development Financial Holding Corp. to BBB+ from BBB and its short-term credit rating to A-2 from A-3.

The agency also boosted the long-term counterparty credit rating on China Development Industrial Bank to A- from BBB+ and affirmed its A-2 short-term credit rating.

The outlook on the long-term ratings was revised to stable from positive.

S&P said the rating actions reflect the group's integrating operations among group members, diversification into new revenue sources, improved risk characteristics of subsidiaries within the group, steady senior management team and managed growth.

The agency said ratings reflect good capitalization and leading collective position in Taiwan's venture capital industry.

Other factors include the relatively high risk profile of the group's direct investment portfolio business, which is sensitive to capital market fluctuations, S&P said.

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