Moody's Investors Service and Standard & Poor's Ratings Services Tuesday assigned A2 and'BBB+'ratings respectively to the Export-Import Bank of China (China EXIM)'s impending US dollar global bonds due 2014.

The rating outlook is stable.

"Standard & Poor's issuer credit ratings on China EXIM are the same as those assigned to People's Republic of China', reflecting the strong support from the government, its sole owner, and the bank's policy role in promoting export financing," said Standard &Poor's credit analyst Ping Chew, director of Emerging Asia Sovereign International Public Finance Ratings.

The ratings also reflect China EXIM's key role as the country's conduit for foreign official funding for projects within China, as well as for Chinese government concessional lending to other countries.

China EXIM was established in 1994 as one of three policy banks to promote Chinese exports through the provision of financing products.

"Standard & Poor's expects China EXIM's policy role and the government support it receives to be undiminished in the medium term, given China's emphasis on trade promotion and exports. The bank's asset quality is also believed to be better than the other Chinese banks, due to its export-oriented clientele and self-liquidating nature of its loans, although its total assets size is significantly smaller than the other two policy banks," said Chew.

On the other hand, Moody's A2 rating incorporates China EXIM's policy functions in promoting Chinese exports and imports as well as the strong support it receives from the central government in its performance of these roles, Moody's said in a press release.

The bank's own financial performance remains weak, but its increased emphasis on risk management may allow it to better control any potential losses, Moody's said.

Source: Xinhua