HONG KONG (XFN-ASIA) - Moody's Investors Service said it has upgraded the bank financial strength rating (BFSR) of Industrial and Commercial Bank of China (ICBC) to 'D-' from 'E+' .
The 'D-' rating has a stable outlook, it said, adding that the upgrade concludes a review of ICBC's BFSR started on August 9 this year.
ICBC's 'A2' long-term deposit and 'P-1' short-term deposit ratings, both with a positive outlook, were unaffected.
'The BFSR upgrade reflects ICBC's significantly improved financial position, particularly its strengthened capital levels,' Moody's senior analyst May Yan said.
'After its IPOs on the Hong Kong and Shanghai Stock Exchanges on October 27, its total regulatory capital adequacy ratio, as estimated by Moody's, rose to over 14 pct,' Yan said, adding that government recapitalization and the bank's own restructuring efforts also helped improve its asset quality in recent years.
Moody's said it expects ICBC to continue with its reforms and maintain its leading franchise through the pursuit of quality growth in China's high-growth banking market.
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The 'D-' rating has a stable outlook, it said, adding that the upgrade concludes a review of ICBC's BFSR started on August 9 this year.
ICBC's 'A2' long-term deposit and 'P-1' short-term deposit ratings, both with a positive outlook, were unaffected.
'The BFSR upgrade reflects ICBC's significantly improved financial position, particularly its strengthened capital levels,' Moody's senior analyst May Yan said.
'After its IPOs on the Hong Kong and Shanghai Stock Exchanges on October 27, its total regulatory capital adequacy ratio, as estimated by Moody's, rose to over 14 pct,' Yan said, adding that government recapitalization and the bank's own restructuring efforts also helped improve its asset quality in recent years.
Moody's said it expects ICBC to continue with its reforms and maintain its leading franchise through the pursuit of quality growth in China's high-growth banking market.
roby.lau@xfn.com
rl/net
© 2006 AFX News
