Research Update: China Merchants Bank 'BBB+/A-2' Ratings Affirmed On Strong Business Position And Asset Quality; Outlook Stable

We expect CMB to maintain its strong market position in China over the next 24 months, with resilient net interest margin and above average asset quality. In our view, CMB will continue to benefit from the Chinese government's extraordinary support because of the bank's moderate systemic importance. We are affirming our 'BBB+' long-term and 'A-2' short-term issuer credit ratings on CMB and its core subsidiaries. We are also affirming all the ratings on the debt these entities issued or guaranteed. The stable outlook reflects our expectation that CMB can maintain its strong retail franchise, above average asset quality, and resilient capitalization and earnings over the next 24 months. On March 29, 2019, S&P Global Ratings affirmed its 'BBB+' long-term and

...+ We expect CMB to maintain its strong market position in China over the next 24 months, with resilient net interest margin and above average asset quality. + In our view, CMB will continue to benefit from the Chinese government's extraordinary support because of the bank's moderate systemic importance. + We are affirming our '###+' long-term and 'A-2' short-term issuer credit ratings on CMB and its core subsidiaries. We are also affirming all the ratings on the debt these entities issued or guaranteed. + The stable outlook reflects our expectation that CMB can maintain its strong retail franchise, above average asset quality, and resilient capitalization and earnings over the next 24 months....

Research Update