Bank of China Ltd. 'A/A-1' Ratings Affirmed; Outlook Stable

We believe BOC's improved capitalization will provide a stronger buffer against rising economic risks in China and Hong Kong. We also expect the China-based bank to have slower growth in loans and risk-weighted assets over the next 12-24 months. We have therefore revised our assessment of BOC's capital and earnings to adequate from moderate and our assessment of its SACP to 'bbb+' from 'bbb'. We are affirming our 'A' long-term and 'A-1' short-term issuer credit rating on BOC and the 'A-' long-term issuer credit rating and insurer financial strength rating on BOC Insurance Co. Ltd., BOC's onshore insurance subsidiary. We are raising the rating on BOC's AT1 preference share to 'BB' from 'BB-', and affirming the issue rating on the

...+ We believe BOC's improved capitalization will provide a stronger buffer against rising economic risks in China and Hong Kong. We also expect the China-based bank to have slower growth in loans and risk-weighted assets over the next 12-24 months. + We have therefore revised our assessment of BOC's capital and earnings to adequate from moderate and our assessment of its SACP to '###+' from '###'. + We are affirming our 'A' long-term and 'A-1' short-term issuer credit rating on BOC and the 'A-' long-term issuer credit rating and insurer financial strength rating on BOC Insurance Co. Ltd., BOC's onshore insurance subsidiary. We are raising the rating on BOC's AT1 preference share to '##' from '##-', and affirming the issue rating on the bank's other outstanding debt. + The stable outlook on BOC reflects our expectation that the bank can maintain a SACP significantly stronger than the industry average in China over the next 12-24 months and continue to have a very high likelihood of government...

Ratings Action