Moody Moved up the Financial Strength Rating of ICBC Asia to D+

Recently, Moody adjusted the financial strength rating of Industrial and Commercial Bank of China (Asia) (hereinafter referred as "ICBC Asia") from the former D to D+. Rating outlook was "Stable". Its long-term deposit rating "A2" and short-term deposit rating "P-1" remained unchanged.

Moody's adjustment this time reflected the improvement of the financial position of ICBC Asia and the successful integration with Fortis Bank Asia Hong Kong. Belgian Fortis Bank was acquired by ICBC Asia in 2004 and was fully merged officially in October 2005. This acquisition let ICBC Asia furnish a more diversified platform for banking service to small-and-medium enterprises, which further lessen its reliance on corporate finance from banks. In addition, ICBC Asia acquired China Mercantile Bank recently with an aim to offer cross-border banking services to small-and-medium enterprises.

ICBC Asia has comparatively high operation value and brand merit owing to its close relationship with parent company - Industrial and Commercial Bank of China, the largest commercial bank in China. With the acquisition of HK Union Bank in 2000 and the introduction of commercial banking business of ICBC HK in 2001, ICBC Asia became the largest overseas organization of ICBC.

Under the strong capital base of its parent company, asset scale and profitability of ICBC Asia were significantly improved. Its asset quality remained sound. Its strength in maintaining effective growth while controlling lending cost had actively contributed to its credit rating.