S&P Global Ratings assigned ratings to China CITIC Bank Corp. Ltd.
The rating agency said in a Dec. 1 report that it assigned the bank a BBB+ long-term and A-2 short-term issuer credit ratings. The outlook on the long-term rating is stable.
The ratings reflect S&P's view that the Chinese bank will continue to benefit from its strong nationwide franchise, particularly in providing comprehensive corporate financing services.
It also reflects the opinion that the lender will continue to be a core subsidiary of CITIC Group Corp. China CITIC Bank should receive "timely group support" and the indirect benefit of a "very high likelihood of extraordinary support" from China's central government through its parent, S&P noted.
The rating agency however, expects the bank's weak capitalization to continue to constrain its credit profile.
Meanwhile, the stable outlook reflects the view that the lender will remain a core subsidiary of CITIC Group, whose credit profile is expected to stay largely stable over the next two years.
A change in the parent's ratings can lead to a similar action on the bank, S&P said, adding that it could also lower the lender's ratings if it is no longer viewed as a core group subsidiary. The likelihood of these happening though, is seen to be low over the next two years.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
