...Strengths: Weaknesses: + Almost certain likelihood of extraordinary government support due to the critical importance of CDB's policy role and integral link with the government. + Good business position supported by a stable customer base and multi-pillar investment development strategy. + Concentration of credit exposure to the corporate sector and significant off-balance sheet commitments. + Growing credit challenges due to increased engagement in risky sectors amid China's slowing economy. Outlook The stable outlook on China Development Bank (CDB) is in line with the outlook on the sovereign credit rating on China (A+/Stable/A-1). Given the bank's integral link and critical role to the government, future rating transitions will continue to move in tandem with the sovereign. We could lower the rating on CDB if the sovereign's willingness to support the bank declines. However, we believe this scenario is very unlikely over the next two years, given CDB's policy role in development finance....
