Fitch: Citic Ka Wah outlook positive

Fitch Ratings said it revised Citic Ka Wah Bank's outlook to positive from stable and affirmed its ratings at long-term foreign-currency issuer default BBB+, short-term foreign-currency issuer default F2, individual C, support 3 and support floor BB.

The agency affirmed the BBB+ senior unsecured notes, BBB subordinated notes and BBB- junior subordinated notes.

The outlook revision reflects the bank's considerable development in recent years toward becoming a Hong Kong-based conduit for foreign companies investing in China as well as Chinese companies expanding offshore, the agency said.

The ratings also reflect the bank's operating profit and balance sheet strength, Fitch said.

The company's profitability, however, is still slightly below average due to lower margins through significant low-yield debt paper holdings, and its costs are somewhat higher than average due to investments in talent and risk management systems, the agency said.

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