Research Update: China Bohai Bank Rated 'BBB-/A-3'; Outlook Stable

China Bohai Bank Co. Ltd. (CBHB) is China's youngest joint-stock bank (JSB), with a fast-growing nationwide franchise and moderately high likelihood of extraordinary government support. The bank's business position as well as funding and liquidity profiles are adequate, in our view. CBHB's weak capitalization and high exposure to real estate temper these strengths. We expect the bank to maintain its asset quality largely in line with its peers. We are assigning our 'BBB-' long-term and 'A-3' short-term issuer credit ratings to CBHB. The stable outlook on CBHB reflects our expectation that the bank will maintain its business position and moderate systemic importance over the next two years. On Jan. 12, 2021, S&P Global Ratings assigned its 'BBB-' long-term and 'A-3'

...- China Bohai Bank Co. Ltd. (CBHB) is China's youngest joint-stock bank (JSB), with a fast-growing nationwide franchise and moderately high likelihood of extraordinary government support. The bank's business position as well as funding and liquidity profiles are adequate, in our view. - CBHB's weak capitalization and high exposure to real estate temper these strengths. We expect the bank to maintain its asset quality largely in line with its peers. - We are assigning our '###-' long-term and 'A-3' short-term issuer credit ratings to CBHB. - The stable outlook on CBHB reflects our expectation that the bank will maintain its business position and moderate systemic importance over the next two years....

Research Update