MOODY'S ASSIGNS FIRST TIME A1 RATING TO CHINA CONSTRUCTION BANK (NEW ZEALAND) LIMITED.
Summary: Moody's Investors Service has assigned A1 long-term issuer and deposit ratings
Moody's Investors Service has assigned A1 long-term issuer and deposit ratings and Prime-1 short-term issuer and
deposit ratings to China Construction Bank (New Zealand) Limited (CCBNZ),
the New Zealand subsidiary of China Construction Bank Corporation (CCB,
A1 stable). Ratings of (P) A1 were also assigned to the bank's Medium
Term Note Programme and Debt Issuance Programme.
This is the first time that Moody's has assigned ratings to CCBNZ. The
outlook on the ratings is stable.
"The A1 rating is in line with CCB's long-term deposit rating and
reflects the unconditional and irrevocable guarantee provided by CCB,"
says Daniel Yu, a Moody's Assistant Vice President and Analyst.
CCBNZ is a fully owned subsidiary of CCB. The bank offers corporate and
commercial lending, trade finance and other FX related services, with a
focus on customers with linkages between China and New Zealand.
ABOUT THE PARENT CCB
CCB's A1 rating reflects the bank's very strong franchise, very liquid
balance sheet, good capital position and strong profitability. On the
other hand, CCB's asset quality has weakened, driven by slower economic
growth in China.
CCB's long-term deposit rating of A1 incorporates a four-notch uplift
from its baa2 standalone credit profile, owing to Moody's assumption of a
very high probability of support from the Chinese government (Aa3 stable)
in the event of financial distress, given the bank's 57% government
ownership and systemic importance.
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|Publication:||EMBIN (Emerging Markets Business Information News)|
|Date:||Apr 30, 2015|
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