Fitch Ratings upgraded the short-term issuer default ratings of China Development Bank Corp., Agricultural Development Bank of China and Export-Import Bank of China to F1+ from F1 and affirmed their long-term issuer default ratings at A+. The outlooks are stable for the long-term ratings.

The banks' short-term issuer default ratings were upgraded to align them with the sovereign's ratings.

Fitch said Jan. 19 that the banks' ratings reflect Fitch's expectation that the Chinese government will support the policy banks in the event of stress. The three banks provide finance in key areas such as infrastructure projects, rural development projects and the growth of external trade.

The issuer default ratings of the three banks will likely move in tandem with China's sovereign ratings. Negative ratings action may arise if there is any change in the perceived ability or willingness of the government to support the banks.