Fitch Ratings Downgrades Outlook for Chinese State-Owned Banks
By Sherry Qin
Fitch Ratings has downgraded the outlook for six Chinese state-owned banks amid concerns about the government's ability to support the sector in the event of stress. The move comes after the rating agency cut its outlook for China's sovereign credit rating last week.
Fitch on Tuesday downgraded the outlook for the credit rating of six Chinese banks to negative from stable, including Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank of China.
Last week, the rating agency cut its outlook for China's long-term foreign debt to negative from stable, citing risks to China's public finances as the country faces more uncertainties "amid a transition away from property-reliant growth to what the government views as a more sustainable growth model."
Fitch said China's lower sovereign rating outlook indicates its reduced ability to "provide the same level of extraordinary support to these banks," although it reckons the government's propensity to support the state-owned banks remains intact.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
April 16, 2024 05:00 ET (09:00 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year