Strong retail franchise among domestic peers. Funding base supported by above-average level of retail and low-cost deposits. Moderate systemic importance as the sixth-largest commercial bank by assets in China. Moderate capital despite above-average profitability. Asset quality affected by slower domestic economic growth. The stable outlook on China Merchants Bank Co. Ltd. (CMB) reflects our view that the bank's asset quality and profitability are likely to remain above the peer average over the next two years. While an economic slowdown in China will continue to pressure CMB's credit quality, we expect the bank's credit losses through a cycle to outperform the industry average. We continue to see a moderately high likelihood of extraordinary government support for CMB, given the bank's systemic
