Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese) - Moody's Global Credit Research

Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese)

Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese) - Moody's Global Credit Research
Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese)
Published Sep 28, 2021
6 pages (322 words) — Published Sep 28, 2021
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¬ 2021 (Moody's Corporation) (Moody's Investors Service, Inc.) Moody's Analytics, Inc./("") / "" "" Moody's Analytics, Inc / () (benchmark) "" () (a) (b) ( ) ("MCO") () 1,000 2,700,000 MCO MCO MCO...

  
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WeBank Co., Ltd.
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Moody's withdraws WeBank's ratings for business reasons - Rating Action – 2022/09/16 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

WeBank Co., Ltd.: Update following rating affirmation and outlook change to negative - Credit Opinion – 2021/09/30 – US$ 250.00 – ...On 28 September 2021, we affirmed WeBank Co., Ltd.'s (WeBank) A3 deposit rating, ba1 Baseline Credit Assessment (BCA) and baa1 Adjusted BCA. Meanwhile, we changed its outlook to negative from stable. WeBank's A3 deposit rating incorporates a three-notch uplift, reflecting a very high level of support from Tencent Holdings Limited (A1 stable) and its related entities (Tencent), which owns 30% of the bank; and a one-notch uplift, reflecting a moderate level of support from the Government of China (A1 stable). The evolving regulations over technology firms brings uncertainty to the bank's business model and the level of affiliate support from Tencent when needed. We expect WeBank's expansion into micro and small enterprises (MSEs) lending to improve business diversification but add loan book cyclicality in the next 12-18 months. Capitalization will remain at a satisfactory level. Profitability will remain high, but the bank faces challenges on rising credit costs....

Moody's affirms A3/P-2 ratings of WeBank; changes outlook to negative from stable - Rating Action – 2021/09/28 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

WeBank Co., Ltd.: Update to credit analysis - Credit Opinion – 2021/09/06 – US$ 250.00 – ...WeBank Co., Ltd.'s (WeBank) A3 deposit rating incorporates its Baseline Credit Assessment (BCA) of ba1; a three-notch uplift, reflecting a very high level of support from Tencent Holdings Limited (A1 stable) and its related entities (Tencent); and a one-notch uplift, reflecting a moderate level of support from the Government of China (A1 stable). We expect WeBank's expansion into micro and small enterprises (MSEs) lending to improve business diversification, but add loan book cyclicality and unseasoned asset risk. Capitalization will likely strengthen in the next 12-18 months from potential capital injection. Profitability will remain higher than peers, but the bank faces challenges on rising credit costs. We expect its business cooperation with Tencent to be stable but susceptible to heightened regulatory risk over technology firms. WeBank is a privately owned, digital-only bank, with a large retail base of more than 270 million individual customers, benefiting from ecosystem of the Tencent...

WeBank Co., Ltd.: Update to credit analysis - Credit Opinion – 2021/01/10 – US$ 250.00 – ...WeBank Co., Ltd.'s A3 long-term deposit rating incorporates its Baseline Credit Assessment (BCA) of ba1; a three-notch uplift, reflecting our assessment of a very high level of support from Tencent Holdings Limited (A1 stable) and its related entities (Tencent); and a one-notch uplift, reflecting our assessment of a moderate level of support from the Government of China (A1 stable). WeBank's ba1 BCA indicates its strong profitability; low reliance on market funds and good liquidity; rapid loan growth, which raises some asset risk; and satisfactory capital ratio. We also consider the evolving regulatory framework for digital banks and the bank's reliance on a small number of products. WeBank is a privately owned, digital-only bank. WeBank has a relatively short operating history but delivered strong profitability and has a solid funding profile, benefiting from the customer base and ecosystem of the Tencent network and its own strength in technology....

WeBank Co., Ltd.: Update to credit analysis - Credit Opinion – 2020/07/02 – US$ 250.00 – ...WeBank Co., Ltd.'s A3 long-term deposit rating incorporates its Baseline Credit Assessment (BCA) of ba1; a three-notch uplift reflecting our assessment of a very high level of support from Tencent Holdings Limited (A1 stable) and its related entities (Tencent); and a one-notch uplift reflecting our assessment of a moderate level of support from the Government of China (A1 stable). WeBank's ba1 BCA indicates its strong profitability; low reliance on market funds and good liquidity; rapid loan growth, which raises some asset risk; and satisfactory capital ratio. The bank's BCA also takes into account the evolving regulatory framework for digital banks and the bank's reliance on a small number of products. WeBank is a privately owned, digital-only bank. WeBank has a relatively short operating history but delivered strong profitability and has a solid funding profile, benefiting from the customer base and ecosystem of the Tencent network and its own strength in technology....

WeBank Co., Ltd.: New issuer - Credit Opinion – 2019/11/28 – US$ 250.00 – ...We assign local currency and foreign currency long-term deposit ratings of A3 and short- term deposit ratings of P-2 to WeBank Co., Ltd. (WeBank) WeBank's A3 long-term deposit rating incorporates (1) its Baseline Credit Assessment (BCA) of ba1; (2) a three-notch uplift reflecting our assessment of a very high level of support from Tencent Holdings Limited (A1 stable) and its related entities (Tencent); and (3) a one-notch uplift reflecting our assessment of a moderate level of support from the Government of China (A1 stable). Tencent is the bank's single largest shareholder with a 30% stake. WeBank's ba1 BCA indicates its (1) strong profitability; (2) low reliance on market funds and good liquidity; (3) rapid loan growth since its incorporation, raising some asset risk; and (4) satisfactory capital ratio, which has been lifted in the past by capital injections from its shareholders. The bank's BCA further takes into account the evolving regulatory framework for digital banks and the bank's...

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese)" Sep 28, 2021. Alacra Store. Mar 28, 2024. <http://www.alacrastore.com/moodys-credit-research/Moodys-affirms-A3-P-2-rating-of-WeBank-changes-outlook-to-negative-from-stable-Chinese-PR_455433>
  
APA:
Moody's Global Credit Research. (). Moodys affirms A3/P-2 rating of WeBank; changes outlook to negative from stable (Chinese) Sep 28, 2021. New York, NY: Alacra Store. Retrieved Mar 28, 2024 from <http://www.alacrastore.com/moodys-credit-research/Moodys-affirms-A3-P-2-rating-of-WeBank-changes-outlook-to-negative-from-stable-Chinese-PR_455433>
  
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