The trends on BOCC's long-term ratings were revised to Stable from Negative, while the trends on the short-term ratings remained Stable. The Support Assessment (SA) for BOCC is SA1, reflecting the expectation of timely support from its parent,
KEY RATING CONSIDERATIONS
The change in the trend to Stable on BOCC's long-term ratings is driven by the trend change on the ratings of the PRC by DBRS Morningstar on
The ratings of BOCC, a wholly owned subsidiary of BOC, reflect its important strategic position as an extension of its Parent's global platform, providing banking services to Chinese corporate and retail clients outside of the PRC. BOCC's strategic importance to its Parent is also demonstrated through the Bank's close links with the Parent's management and reporting systems. Given the international scope of BOC and its global systemic importance, as well as being majority owned by the PRC, DBRS Morningstar expects the Parent to receive timely, systemic support from the PRC.
RATING DRIVERS
Given BOCC's strategic importance to the Parent, a
RATING RATIONALE
BOCC derives its franchise strength from its position as a financial intermediary facilitating transactional flows between the PRC and
ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The principal methodology is the Global Methodology for
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrsmorningstar.com.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar's outlooks and ratings are under regular surveillance.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
17-Nov-20 Long-Term Issuer Rating Trend Change A (low) Stb CA
17-Nov-20 Short-Term Issuer Rating Confirmed R-1 (low) Stb CA
17-Nov-20 Long-Term Deposits Trend Change A (low) Stb CA
17-Nov-20 Long-Term Senior Debt Trend Change A (low) Stb CA
17-Nov-20 Short-Term Instruments Confirmed R-1 (low) Stb CA
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