Export-Import Bank of China (The)

Almost certain likelihood of extraordinary government support due to the bank's policy-oriented role. Critical importance to and integral linkage with the Chinese government. Zero-risk weights on issued bonds. Moderate financial profile as a result of policy role. Reliance on wholesale funding. The stable outlook on the rating on the Export-Import Bank of China (CEXIM) for the next two years is in line with the outlook on the sovereign credit rating on China. Given the bank's integral link and critical role to the government, future rating movements will likely be linked to those of the Chinese government. We could lower the rating if the Chinese government's willingness to support the bank declines. We believe this scenario is very unlikely in the

...Strengths: Weaknesses: + Almost certain likelihood of extraordinary government support due to the bank's policy-oriented role. + Critical importance to and integral linkage with the Chinese government. + Zero-risk weights on issued bonds. + Moderate financial profile as a result of policy role. + Reliance on wholesale funding. Outlook The stable outlook on the rating on the Export-Import Bank of China (CEXIM) for the next two years is in line with the outlook on the sovereign credit rating on China. Given the bank's integral link and critical role to the government, future rating movements will likely be linked to those of the Chinese government. We could lower the rating if the Chinese government's willingness to support the bank declines. We believe this scenario is very unlikely in the coming years, given the new set of rules the China Banking and Insurance Regulatory Commission (CBIRC) released in November 2017 to supervise CEXIM as a policy bank....

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