In a newsletter for ARC Investment Partners, Adam Roseman revealed that China’s banks received higher rankings than most of their U.S. competitors.
Bank of China and Construction Bank were upped from A- to A, while Industrial & Commercial Bank of China Ltd.’s rating has remained an A. American banks including Citigroup and Bank of America were both lowered to A-, and UBS AG and Barclays were bumped down to A.
“You look at the liquidity conditions in China, they’re very good. You look at the policy impetus, the likelihood of government support, it’s very very high,” said Tom Quarmby of Barclays Capital. “Whilst lending might be higher risk, it’s just lending, it’s not exotic derivatives businesses or investment banking.”