China Banking Corporation's (China Bank) Baa2 deposit and issuer ratings are based on the bank's Baseline Credit Assessment (BCA) of baa3 and a one-notch rating uplift because of our expectation that the bank will receive support from the Government of Philippines (Baa2 stable) in times of need. The outlook on the long-term ratings is stable, in line with the stable outlook on the government's rating.
China Bank's BCA of baa3 is underpinned by the bank's stable capitalization and profitability, which support business expansion; access to support from its key shareholders in the form of capital, funding and liquidity; and risks to asset quality from the economic shock caused by the coronavirus.
Source: Moody’s published report (27 November 2020)
Assigned Issuer Rating: PRS Aaa (corp.)/Stable OutlookA company rated PRS Aaa (corp.) has a very strong capacity to meet its financial commitments relative to that of other Philippine corporates. A PRS Aaa (corp.) is the highest corporate credit rating assigned on the PRS scale.
A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
Source: PhilRatings published Report (May 2020)