Fitch Ratings has assigned an expected rating of 'BBB(EXP)' to
The proposed notes will be listed on the
KEY RATING DRIVERS
CEB Hong Kong Branch is part of the same legal entity as CEB. Therefore, the notes to be issued under the MTN programme will represent CEB's direct, unconditional, unsecured and unsubordinated obligations and are rated in line with its Long-Term Issuer Default Rating (IDR), which is underpinned by the agency's expectations of a high probability of support from the Chinese sovereign (A+/Stable) in the event of stress.
CEB Hong Kong Branch was established in 2013 and is a fully licensed bank in
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
The expected rating of the proposed notes would be upgraded if CEB's IDR is upgraded.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The expected rating of the proposed notes would be downgraded if CEB's IDR is downgraded.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
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