Caixin
Jul 03, 2018 08:00 PM
FINANCE

Rural Bank’s Ratings Cut After Bad Loans Soar

After the inclusion of loans that are more than 90 days overdue at the end of last year, Guiyang Rural Commercial Bank's non-performing loan ratio jumped to 19.54% from 2.93% two years earlier. Photo: VCG
After the inclusion of loans that are more than 90 days overdue at the end of last year, Guiyang Rural Commercial Bank's non-performing loan ratio jumped to 19.54% from 2.93% two years earlier. Photo: VCG

A Chinese rural bank has had its credit ratings downgraded due to a surge in bad loans that wiped out its capital buffers, after the regulator ordered lenders to classify more of their overdue loans as soured assets.

The issuer rating of Guiyang Rural Commercial Bank (GRCB) was lowered by one notch to A+ from AA-, China Chengxin International Credit Rating Co. Ltd. said in a statement dated Friday. The agency also cut the ratings on two of the bank’s bonds to A from A+.

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