This desktop analysis
is based on S&P Global
(China) Ratings Financial
Institutions Methodology.
We typically determine
the stand-alone credit
quality based on our assessment
of an institution’s anchor,
a starting point, and
then incorporate its own
characteristics compared
with the anchor. S&P Global
(China) Ratings typically
applies an anchor of ‘bb+’
for non-bank financial
institutions (“NBFI”).
For NBFIs licensed and
regulated by China Banking
and Insurance Regulatory
Commission (“CBIRC”),
we typically adjust their
anchor from ‘bb+’ to ‘bbb-’
to reflect their robust
regulatory environment
and access to the inter-bank
market. The entity-specific
factors that we may use
to adjust from the anchor
include business position,
capital and earnings,
risk position, and funding
and liquidity. We then
determine the issuer credit
quality based on the stand-alone
credit quality and our
assessment of potential
group and government influence.