Fitch Ratings has upgraded China CITIC Bank International Limited's (CNCBI) Shareholder Support Rating (SSR) to 'bbb+' from 'bbb'.

The rating action follows the upgrade of China CITIC Bank Corporation Limited's (CNCB) Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB+', from 'BBB', due to parent CITIC Group Corporation Ltd.'s increased importance and close relationship with the central government as a majority state-owned conglomerate. See Fitch Upgrades China CITIC Bank's Long-Term IDR to 'BBB+'; Outlook Stable, published on 6 September 2023.

All other ratings of CNBCI were not part of this review.

Key Rating Drivers

High Probability of Support: CNCBI's SSR reflects its parent's ability and propensity to provide extraordinary shareholder support. We equalise the SSR with CNCB's IDR, as we regard the bank as a core subsidiary and an important platform for the parent's overseas expansion. We believe a default at CNCBI would damage the parent's reputation, increasing the possibility of timely support from CNCB and, ultimately, from the Chinese sovereign (A+/Stable). Shareholder support mitigates the risk to CNCBI's 'BBB+'/Stable Long-Term IDR in the event of a Viability Rating (bbb+) downgrade.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

The SSR could be downgraded if we conclude that the Chinese sovereign's propensity to provide timely support through CNCB has weakened, which may be through a downgrade of CNCB's IDR, or if CNCBI's strategic importance to the parent has diminished.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

The SSR could be upgraded if there is similar action on CNCB's IDR. This may result from an upgrade in China's sovereign ratings or more explicit statements of support from the state that signal an increased propensity to support CNCB and its subsidiaries.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Public Ratings with Credit Linkage to other ratings

CNCBI's SSR is linked to the ratings of CNCB.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

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