China Bohai Bank (CBHB) is likely to improve its asset quality to a level comparable with peers. This is driven by its reduced risk appetite and tighter internal risk control. Asset growth should slow down as a result, helping the bank maintain moderate capitalization. We therefore revised the outlook to stable from negative and affirmed our 'BBB-' long-term and 'A-3' short-term issuer credit ratings on CBHB. The stable rating outlook reflects our expectation that CBHB will continue to improve its asset quality and maintain moderate capitalization on the back of reduced risk appetite and tighter internal risk control. We also expect that the bank will maintain its moderate systemic importance to the Chinese banking system. On Oct. 28, 2024, S&P
