CHINA EVERBRIGHT BANK COMPANY LIMITED
Fitch Ratings has assigned an expected rating of 'BBB(EXP)' to
The proposed notes will be listed on the
Key Rating Drivers
CEB Hong Kong Branch is part of the same legal entity as CEB. Therefore, the notes to be issued under the MTN programme will represent CEB's direct, unconditional, unsecured and unsubordinated obligations, and are rated in line with its Long-Term Issuer Default Rating (IDR). CEB's IDR is underpinned by Fitch's expectations of a high probability of support from the Chinese sovereign (A+/Stable) in the event of stress.
CEB Hong Kong Branch was established in 2013 and is a fully licensed bank in
Key rating drivers and sensitivities for CEB Hong Kong Branch can be found in the last rating action commentary for CEB, 'Fitch Affirms China Everbright Bank's Long-Term IDR at 'BBB', Outlook Stable', published on
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The expected rating of the proposed notes would be downgraded if CEB's IDR is downgraded.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The expected rating of the proposed notes would be upgraded if CEB's IDR is upgraded.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
Fitch has assigned an expected senior unsecured long-term rating (xgs) of 'BB-(xgs)(EXP)' to the proposed notes.
The senior unsecured long-term rating (xgs) will be assigned at the level of CEB's Long-Term IDR (xgs), which is aligned with the bank's Viability Rating.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:
A downgrade of CEB's Long-Term IDR (xgs) would lead to a downgrade of the senior unsecured long-term rating (xgs).
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:
An upgrade of CEB's Long-Term IDR (xgs) would lead to an upgrade of the senior unsecured long-term rating (xgs).
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
Date of Relevant Committee
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
The expected rating of the proposed notes issued by
ESG CONSIDERATIONS
CEB has an ESG Relevance Score of '4' for Financial Transparency as there are still structural issues around financial transparency and disclosure. These issues are not captured in
CEB, like other mid-tier banks, remains more exposed to this risk relative to state banks because of its larger exposure to wealth management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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