Fitch Rates China Everbright Bank HK Branch's Proposed USD Notes 'BBB(EXP)'

China Everbright

04/12/2019 05:51

(The following statement was released by the rating agency)


Fitch Ratings-Hong Kong/Shanghai-December 04: 

Fitch Ratings has assigned an expected rating of 'BBB(EXP)' to China Everbright 
Bank Co., Ltd., Hong Kong Branch's (CEB Hong Kong Branch) proposed long-term 
senior unsecured notes to be issued under its medium-term note (MTN) programme.

The proposed notes will be listed on the Hong Kong Stock Exchange and the 
proceeds will be used primarily to support CEB Hong Kong Branch's general 
funding needs, including various loan projects in China's Greater Bay Area. The 
issue amount and maturity structure will be finalised upon settlement. The final 
rating is contingent upon the receipt of final documents conforming to the 
information already received. Fitch first rated CEB Hong Kong Branch's MTN 
programme 'BBB' on 14 September 2016 and last affirmed the rating on 25 June 
2019.

Key Rating Drivers

CEB Hong Kong Branch is part of the legal entity, China Everbright Bank Company 
Limited (CEB, BBB/Stable). Therefore, the notes to be issued under the MTN 
programme ultimately represent direct, unconditional, unsecured and 
unsubordinated obligations of CEB, and are rated in line with CEB's Long-Term 
Issuer Default Rating (IDR) of 'BBB' with a Stable Outlook. CEB's IDR is 
underpinned by the agency'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 
Hong Kong. It is the first and largest overseas branch of CEB, and its 
operations and business are highly integrated with that of the parent. CEB also 
provides credit facilities to CEB Hong Kong Branch to support the branch's 
liquidity needs.

RATING SENSITIVITIES

Any change to the ratings of the programme and the notes will be correlated 
directly with changes in CEB's IDR, which will in turn reflect any shift in the 
perceived willingness or ability of the Chinese government to support CEB in a 
full and timely manner.

Date of Relevant Committee

24-Jun-2019

China Everbright Bank Co., Ltd., Hong Kong Branch

----senior unsecured; Long Term Rating; Expected Rating; BBB(EXP)

Contacts: 

Primary Rating Analyst

Grace Wu, 

Senior Director

+852 2263 9919

Fitch (Hong Kong) Limited

19/F Man Yee Building 60-68 Des Voeux Road Central

Hong Kong

Secondary Rating Analyst

Elaine Xu, 

Associate Director

+86 21 6898 7993

Committee Chairperson

Heakyu Chang, 

Senior Director

+822 3278 8363

 

Media Relations: Alanis Ko, Hong Kong, Tel: +852 2263 9953, Email: 
alanis.ko@thefitchgroup.com; Wai Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: 
wailun.wan@thefitchgroup.com.

Additional information is available on www.fitchratings.com

Applicable Criteria 

Bank Rating Criteria (pub. 12 Oct 2018)

https://www.fitchratings.com/site/re/10044408

Additional Disclosures 

Solicitation Status 

https://www.fitchratings.com/site/pr/10103816#solicitation

Endorsement Policy 

https://www.fitchratings.com/regulatory

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