Fitch Affirms Shanghai Commercial Bank's Ratings

According to sources with Fitch Ratings, Fitch affirmed on Wednesday Shanghai Commercial Bank's ("SCB") Individual rating at 'B' and Support rating at '3'.

The Individual rating reflects the bank's very solid balance sheet, strong profitability and strong niche franchise in the trade finance sector. SCB's profitability has consistently been above its peers with its RoAA averaging at 1.6percent over the past 10 years.

The bank's Support rating suggests a moderate probability of external support from the Chinese government, given its relatively small market share, and from its shareholders as SCB is almost as large as its Taiwan-based parent, the Shanghai Commercial Savings Bank (rated 'B/C',) which owns a 56percent stake in SCB. Wells Fargo Bank and Shanghai United International Investment have a minority stake in the bank.

By People's Daily Online