DBRS Assigns Rating of A (low) to Bank of China (Canada) Long-Term Deposits; Stable Trend

DBRS Limited (DBRS) assigned a rating of A (low) with a Stable trend to Bank of China (Canada)’s (BOCC or the Bank) Long-Term Deposits.

On August 9, 2017, DBRS assigned ratings of A (low) to BOCC’s Long-Term Issuer Rating, A (low) to BOCC’s Long-Term Senior Debt, R-1 (low) to BOCC’s Short-Term Issuer Rating and R-1 (low) to BOCC’s Short-Term Instruments. All trends are Stable (please refer to the DBRS’s press release dated August 9, 2017 on dbrs.com for more information).

RATING DRIVERS
Given that the ratings are based on an Support Assessment that is driven by the relationship to Bank of China (BOC), a G-SIB that is 67.6% owned by the People’s Republic of China’s (PRC), ratings could be positively impacted by an upgrade of PRC’s sovereign rating. Conversely, ratings could come under pressure should there be a reduction in the ownership stake by the Chinese government in BOC, a reduction in BOCC’s strategic importance to BOC or a downgrade of the PRC’s sovereign rating.

Notes:
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.dbrs.com.

The principal methodology is Global Methodology for Rating Banks and Banking Organisations (May 2017), which can be found on dbrs.com under Methodologies.

Lead Analyst: Sohail Ahmer
Rating Committee Chair: William Schwartz