Fitch downgrades six Chinese banks

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.”

This article was written by Eamonn Sheridan at www.forexlive.com.