ICBC Financial Leasing Co. Ltd.

Core subsidiary of ICBC. The ratings on ICBC Financial Leasing Co. Ltd. (ICBCFL) and ICBCIL Finance Co. reflect the ratings on their ultimate parent, Industrial and Commercial Bank of China Ltd. (ICBC: A/Stable/A-1; cnAA+/cnA-1). We view that both companies are core subsidiaries within the group. We no longer maintain a stand-alone credit profile assessment on ICBCFL. Even though ICBCFL's size is small, at only 0.83% of the group's assets at 2015, it is the largest bank-affiliated financial leasing company in China as of Dec. 31, 2015. The company serves an important strategic role as a specialized leasing arm that assists the parent by providing a full suite of financial services. We also see close reputational linkages and system integration between

...The ratings on ICBC Financial Leasing Co. Ltd. (ICBCFL) and ICBCIL Finance Co. reflect the ratings on their ultimate parent, Industrial and Commercial Bank of China Ltd. (ICBC: A/Stable/A-1; cnAA+/cnA-1). We view that both companies are core subsidiaries within the group. We no longer maintain a stand-alone credit profile assessment on ICBCFL. Even though ICBCFL's size is small, at only 0.83% of the group's assets at 2015, it is the largest bank-affiliated financial leasing company in China as of Dec. 31, 2015. The company serves an important strategic role as a specialized leasing arm that assists the parent by providing a full suite of financial services. We also see close reputational linkages and system integration between ICBCFL and the parent bank. Hence, we believe any potential extraordinary government support to the parent could indirectly flow to ICBCFL, should it be needed. ICBCFL follows the same credit risk management policy as ICBC, including underwriting standards, exposure...

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