China Construction Bank (Asia) ratings cut to 'A2' - Moody's |
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Fri, 27 Jul 2007 08:03
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HONG KONG (XFN-ASIA) - Moody's Investors Service said it has downgraded both the long-term foreign currency and local currency deposit ratings of China Construction Bank (Asia) Corp Ltd (CCBA), formerly Bank of America (Asia) Ltd, to 'A2' from 'A1' and 'Aa3' respectively.Moody's said the ratings downgrade reflects the change in ownership of the entity to A1-rated China Construction Bank Corp from Aaa-rated Bank of America.It has also downgraded CCBA's long-term local currency deposit note/CD program rating to 'A2' from 'Aa3', while the short-term deposit ratings for foreign and local currencies are both confirmed at 'prime-1'.Meanwhile, Moody's assigned a bank financial strength rating (BFSR) of 'C' to CCBA.The outlook for all ratings is stable, it said.China Construction Bank completed the acquisition of 100 pct of Bank of America (Asia) at end-2006.'The BFSR of 'C' reflects CCBA's solid financials, strong capitalization, and outstanding asset quality,' said Leo Wah, a vice president at Moody's.Wah said, however, that the rating takes into account the bank's limited market presence and potential impact of the changes in ownership and business expansion strategy on CCBA.roby.lau@xfn.com-xfnrl/xfnrcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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China leading banks upgraded to 'A1' from 'A2' after sovereign upgrade - Moody's 