(6 May 2015 – New Zealand/Asia) China Construction Bank New Zealand Ltd (CCBNZ) has been assigned its first A1 long-term issuer and deposit ratings and a Prime-1 short-term issuer and deposit ratings from Moody’s Investors Service.
The outlook for the ratings is stable and Moody’s said any CCB is a very strong franchise.
“The A1 rating is in line with CCB’s long-term deposit rating and reflects the unconditional and irrevocable guarantee provided by CCB,” said Daniel Yu, a Moody's Assistant Vice President and Analyst.
CCBNZ is a fully owned subsidiary of CCB.
The bank offers corporate and commercial lending, trade finance and other FX related services, with a focus on customers with linkages between China and New Zealand.
In its statement, Moody’s said CCB's A1 rating reflects the bank's very strong franchise, very liquid balance sheet, good capital position and strong profitability. On the other hand, CCB's asset quality has weakened, driven by slower economic growth in China.
CCB's long-term deposit rating of A1 incorporates a four-notch uplift from its baa2 standalone credit profile, owing to Moody's assumption of a very high probability of support from the Chinese government (Aa3 stable) in the event of financial distress, given the bank's 57 percent government ownership and systemic importance.