Lianhe Global has affirmed ‘A-’ global scale Long-term Issuer Credit Rating of Xiamen International Bank Co., Ltd. (“XIB” or “the bank”); Issuer Rating is Outlook Stable
The Issuer Rating reflects Xiamen International Bank Co., Ltd. (“XIB”)’s established network in economically advanced regions in mainland China, as well as Hong Kong and Macau, stable funding sources and adequate liquidity. In addition, we expect that there is a high possibility that the Fujian Provincial People’s Government (“the Fujian government”) would provide strong support to XIB if needed, considering XIB’s strong linkage with the Fujian government as a provincial financial institution in Fujian. The rating also considers XIB’s new issuance of equity and Tier 2 capital bonds to replenish capital. However, its core Tier 1 capital adequacy is under pressure, along with weakening asset quality and profitability.
The Stable Outlook reflects our expectation that XIB will maintain its established market position, strategic importance in local financial system and its linkage with the Fujian government.