Zhuhai Rural Commercial Bank Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB-’ global scale Long-term Issuer Credit Rating with Stable Outlook to Zhuhai Rural Commercial Bank Co., Ltd.

The Issuer Rating reflects Zhuhai Rural Commercial Bank Co., Ltd. (“ZRCB”)’s established strong network in Zhuhai, strong capitalization after the private placement and adequate liquidity. In addition, we expect that there is a high possibility that the Zhuhai government would provide strong support to ZRCB if needed, considering their strong linkage. The rating also considers ZRCB’s limited operating scale, high concentration risks and narrowing net interest margin.

The Stable Outlook reflects our expectation that ZRCB will maintain its market position in Zhuhai and its linkage with the Zhuhai government while maintaining the capital adequacy ratio and liquidity ratio at the level which is commensurate with its credit profile.