Gazprombank gets Dagong rating, panda bonds possible
MOSCOW. March 18 (Interfax) - China's Dagong Global Credit Rating Company Limited (Dagong) has assigned Russia's Gazprombank an 'A-' foreign and local currency credit rating with stable outlook, the bank said in a press release.
Reports have said Gazprombank was considering placing bonds on China's domestic market. This concerns so-called 'panda bonds', which foreign companies and banks place on the domestic Chinese market.
One condition for a foreign borrower to enter the local Chinese market is having a rating from a Chinese agency.
Gazprombank said that the Dagong rating was one level below Russia's sovereign rating and at the same level as the U.S.'s rating. In a report, Dagong notes that Gazprombank holds a significant share of the Russian market and has competitive advantage due to the centralization process of the country's banking system. The agency added that the bank's financial situation is characterized by relatively high capital adequacy, high liquidity and stable financing sources. In addition, the bank is very capable of settling debt denominated in both rubles and forex.