S&P Global Ratings assigned long- and short-term issuer credit ratings of A/A-1 to Industrial & Commercial Bank of China (Asia) Ltd.
The outlook on the long-term rating is stable. ICBC (Asia)'s standalone credit profile is "bbb+."
S&P said March 27 that the ratings reflect the bank's core status to its parent Industrial & Commercial Bank of China Ltd., given it is the largest subsidiary of ICBC and the group's principal commercial banking unit in Hong Kong.
ICBC (Asia) is highly integrated with its parent in terms of management and operations. ICBC has consistently referred customers, supported ICBC (Asia)'s information technology systems and is closely associated in terms of brand name and recognition.
S&P may downgrade the bank's rating if its parent bank receives a similar ratings action or if the rating agency assesses it is no longer a core subsidiary of ICBC. The bank's standalone credit profile may be lowered if the bank's expected risk adjusted capital ratio falls below 10% or if the bank's asset quality deteriorates. A significant increase in the bank's reliance on confidence-sensitive wholesale funding may also lead to a downgrade.
The credit profile may be upgraded if the expected risk adjusted capital ratio exceeds 15% or if the bank's loan growth is prudent with credit losses not exceeding the industry average. An upgrade may also arise if the bank significantly strengthens its business franchise.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.