Export-Import Bank of China (The)

Almost certain likelihood of extraordinary government support due to critical importance of policy role in promoting Chinese exports and imports, and integral link with the government. Strong access to wholesale funding. Low profitability due to policy role. Heightened asset quality pressure from COVID-19 disruptions to international trade and China's economic slowdown. The stable outlook on Export-Import Bank of China (CEXIM) is in line with the outlook on the sovereign credit rating on China (A+/Stable/A-1). Given CEXIM's integral link and critical role to the government, future rating movements will be linked to those on the sovereign. We could lower the rating on CEXIM if we downgrade China. This could happen if we see a higher likelihood that China will ease its

...Strengths: Weaknesses: + Almost certain likelihood of extraordinary government support due to critical importance of policy role in promoting Chinese exports and imports, and integral link with the government. + Strong access to wholesale funding. + Low profitability due to policy role. + Heightened asset quality pressure from COVID-19 disruptions to international trade and China's economic slowdown. Outlook The stable outlook on Export-Import Bank of China (CEXIM) is in line with the outlook on the sovereign credit rating on China (A+/Stable/A-1). Given CEXIM's integral link and critical role to the government, future rating movements will be linked to those on the sovereign. We could lower the rating on CEXIM if we downgrade China. This could happen if we see a higher likelihood that China will ease its efforts to stem rising financial risk to support economic expansion in an unsustainable manner. We could also lower our rating on CEXIM if the sovereign's willingness to support CEXIM...

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