Change reflects improvements and government's support
Standard & Poor's yesterday raised the credit ratings of seven mainland financial institutions, including the country's five largest commercial banks.
The upgrades reflected financial improvements, government support, enhanced risk management and foreign strategic investments and came on a day when the international ratings agency raised its assessments for 18 other Asian banks on expectations of government support.
S&P upgraded the long-term foreign currency ratings of the Industrial and Commercial Bank of China, Bank of China and China Construction Bank to BBB-plus from BBB-minus with a stable outlook.
Short-term ratings on the three largest commercial lenders in China were lifted to A-2 from A-3.
The three have won a combined US$60 billion state capital injection since 2003 which kick-started massive financial restructurings that raised their capital adequacy, slashed problem loans and lifted reserve ratios. S&P's ratings also factored in expected continued government support for the banks over the medium term.