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S&P assigns ratings to China International Capital, Hong Kong unit

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S&P assigns ratings to China International Capital, Hong Kong unit

Standard & Poor's Ratings Services said March 30 that itassigned a long-term issuer credit rating of BBB+ and short-term issuer creditrating of A-2 to ChinaInternational Capital Corp. Ltd. and its unit China InternationalCapital Corp. (Hong Kong) Ltd.

The outlook on the long-term ratings is stable.

The rating agency also assigned the companies a long-termGreater China regional-scale rating of "cnA+" and short-term GreaterChina regional-scale rating of "cnA-1."

The ratings reflect China International Capital's"bbb-" stand-alone credit profile and the moderately high likelihoodthat it will receive extraordinary financial support from the Chinesegovernment.

S&P said it believes China International Capital is betterpositioned than the industry average to withstand credit pressure from anegative trend in industry risk due to its more geographically diversifiedoperations.

The stable outlook on the ratings reflects the ratingagency's view that China International Capital's significant operations in HongKong should be able to offset the heightened industry risk in China'ssecurities market.

The ratings of the two companies could be downgraded ifChina International Capital's stand-alone credit profile weakens or if thelikelihood of government support for the company weakens. Conversely, theratings could be upgraded if S&P raises China International Capital'sstand-alone credit profile by two notches, but the rating agency believes thisis unlikely over the next two years.

S&P Ratings andS&P Global Market Intelligence are owned by McGraw Hill Financial Inc.