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Moody's assigns rating to China Construction Bank's insurance unit

Moody's assigned an A2 insurance financial strength rating to China Construction Bank Corp. unit CCB Life Insurance Co. Ltd.

The rating outlook is negative, the rating agency said April 7.

At the same time, Moody's said CCB Life plans to issue core Tier 2 capital securities.

CCB Life provides life insurance, accident and health insurance. The insurer's rating reflects its strong distribution capabilities by leveraging China Construction Bank branch network and brand, as well as the likelihood of support from the bank in times of stress given its strategic importance, Moody's said.

CCB Life's rating is unlikely to be upgraded given its negative outlook. However, its standalone credit profile of "baa1" could be upgraded if it is able to improve its profitability and capitalization. On the other hand, Moody's said it could lower the rating if support level from the parent declines or there is a deterioration in capitalization and profitability.