Research Update: China Bohai Bank Outlook Revised To Negative On Asset-Quality Pressure; 'BBB-/A-3' Ratings Affirmed Under New Criteria

• China Bohai Bank Co. Ltd. (CBHB) faces increased asset-quality pressure from its high exposure to real estate and small and midsize enterprises (SMEs). • We revised our rating outlook on the Tianjin-based bank to negative from stable. At the same time, we affirmed our 'BBB-' long-term and 'A-3' short-term issuer credit ratings on CBHB under our revised criteria. • The negative outlook reflects a one-in-three chance that CBHB's risk position could be worse than the industry average over the next one to two years. On Dec. 22, 2021, S&P Global Ratings revised the outlook on China Bohai Bank Co. Ltd. (CBHB) to negative from stable. At the same time, we affirmed our 'BBB-/A-3' issuer and issue credit ratings on

...+ China Bohai Bank Co. Ltd. (CBHB) faces increased asset-quality pressure from its high exposure to real estate and small and midsize enterprises (SMEs). + We revised our rating outlook on the Tianjin-based bank to negative from stable. At the same time, we affirmed our '###-' long-term and 'A-3' short-term issuer credit ratings on CBHB under our revised criteria. + The negative outlook reflects a one-in-three chance that CBHB's risk position could be worse than the industry average over the next one to two years....

Research Update