On Sept. 15, 2005, Standard&Poor's Ratings Services raised its ratings on Export-Import Bank of China (China EXIM) to 'A-/A-1' from 'BBB+/A-2'. The outlook is positive. The upgrade on China EXIM reflects the expectations of close support from the sovereign (China; A-/Positive/A-1) and the better-defined policy role for China EXIM. Based upon discussions with the government and regulators, Standard&Poor's is satisfied that China EXIM should remain a key development and public policy institution. The draft legislations for the policy banks, including China EXIM, when enacted, are likely to clarify the bank's role, activities, prudential guidelines, and relations with the government. The ratings on China EXIM also reflect the expectation of strong government incentives to support a strategic
