Tai Fung Bank, Industrial and Commercial Bank of China (Macau) Ltd. and Banco OCBC Weng Hang, SA are all on stable outlook as the ability and propensity of support from their respective parents remains unchanged, according to Fitch Ratings’ Issuer Default Ratings (IDRs). Fitch Ratings has affirmed the IDR of Tai Fung Bank at ‘BBB/F2’, ICBC Macau at ‘A/F1’ and OCBC Weng Hang’s Macau unit at ‘A+/F1’. The stable outlook for Tai Fung (at the Viability Rating of ‘bbb-‘) is based on Fitch Ratings’ view that the bank will maintain adequate intrinsic strength, moderate loss-absorption capacity and satisfactory profitability. ICBC Macau’s IDRs and Support Rating (SR) reflect Fitch’s view that its 89.3 per cent-owner Industrial and Commercial Bank of China has an extremely strong propensity to support the Macau unit. The state-owned bank parent has shown evident group support in plans for ICBC’s upcoming capital injection of US$360 million. For Banco OCBC Weng Hang, Fitch is of the view that the Macau unit is of strategic importance to its wholly-owned parent Overseas-Chinese Banking Corp. (OCBC). The assessment of the Macau unit has taken into account its high integration with its direct Hong Kong-based parent OCBC Wing Hang Bank Ltd. in terms of business operation, risk controls and liquidity management. Fitch said it maintains a one-notch difference between Banco OCBC Weng Hang and OCBC’s IDRs (AA-/Stable), as stronger operational support, business synergies and the effect of future secondments are likely to take more time to become fully effective. S.L.
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