Fitch downgrades six Chinese banks to A (from A+)

  • Outlook Stable

The six banks are:

  • China Development Bank (CDB),
  • The Export-Import Bank of China (ExIm),
  • Agricultural Development Bank of China (ADBC),
  • Postal Savings Bank of China Co., Ltd. (PSBC),
  • Standard Chartered Bank (China) Limited (SCBC)
  • and United Overseas Bank (China) Limited (UOBC).

CDB, Exlm, and ADBC are 'policy banks' and their ratings are aligned with China's sovereign rating. While Fitch says

  • "t he sovereign rating downgrade indicates the government's reduced ability to provide the same level of extraordinary support to the banks",
  • "Our expectation of a 'Very Strong' support propensity from the government for the three policy banks and PSBC remains unchanged."
Source: Forex Live