Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB-’ global scale Long-term Issuer and Issuance Credit Rating of Zhuhai Rural Commercial Bank Co., Ltd. (“ZRCB”); Issuer Rating Outlook is Stable.
The Issuer Rating reflects ZRCB’s established strong network in Zhuhai, strong capitalization after the private placement in 2022 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, relatively high concentration risks, under pressure loan quality and profitability.
Lianhe Global has also affirmed ‘BBB-’ global scale Long-term Issuance Credit Rating of the senior unsecured CNY green bonds issued by ZRCB at the same time. A full list of affirmed issuance rating is included in this report.
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.