Moody's ups 3 China banks

Moody's Investors Service said it upgraded the long-term ratings of three big policy banks in China to Aa3 from A1.

The outlook is positive.

China Development Bank's long-term foreign-currency senior debt rating was upgraded to Aa3 from A1. Export-Import Bank of China's long-term domestic- and foreign-currency senior debt ratings were upgraded to Aa3 from A1, and Agricultural Development Bank of China's long-term foreign-currency issuer rating was upgraded to Aa3 from A1.

The action follows a decision to upgrade China's long-term foreign-currency sovereign rating to Aa3, Moody's said.

The banks' baseline credit assessments also are changed to 4 from 5, the agency said, as the banks are likely to receive full support from the government as 100% state-owned banks.

Although the government has begun to initiate reforms to operate the banks more based on commercial interest, state ownership in these entities is not expected to change, Moody's said.

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