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.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks