China Development Bank

The stable rating 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 with the government, and its critical policy role, future rating transitions will continue to move in tandem with the sovereign. We may downgrade CDB if we downgrade China. This could happen if we believe China's fiscal profile will weaken significantly with persistent downward pressure on economic growth, diminishing the country's outperformance in growth. We could also lower our ratings on CDB if we believe the sovereign's willingness to support the bank has declined. However, we believe this scenario is very unlikely over the next two years, given CDB's policy role in development

...Key strengths Key risks Almost certain likelihood of extraordinary government support due to critical policy role and integral link with the China government. Exposure to China's lower-average income, less policy transparency, and more restricted flow of information. Track record of support from the government and the central bank....

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