Nov 20 - Standard & Poor's Ratings Services said today that it had assigned its 'AA-'
long-term rating to the proposed issue of unsecured notes by Amber Circle Funding Ltd.
limited liability company incorporated in the Cayman Islands. The China
Development Bank Hong Kong Branch will guarantee the proposed notes. The
rating on the notes is subject to our review of the final issuance
The issue rating is equalized with the issuer rating on China Development Bank
(CDB; AA-/Stable/A-1+, cnAAA/cnA-1+). The equalization is based on our view of
the integral link between CDB and its Hong Kong branch, and on the strength of
the unconditional irrevocable and timely guarantee issued by the branch.
In the unlikely scenario that the CDB head office needs to service the
guarantee on behalf of the Hong Kong branch, we believe the CDB's capacity to
mobilize funds from overseas sources could mitigate the marginal risk that CDB
may not get timely regulatory approval to transfer funds out of mainland China
to service the guarantee.
We expect the proceeds from the issuance to be lent to SinoAero Leasing Co.
Ltd., CDB Leasing's wholly owned subsidiary that carries its international
leasing business. CDB holds almost 90% of CDB Leasing as of end 2011.
RELATED CRITERIA AND RESEARCH
-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011
-- Timeliness of Payments: Grace Periods, Guarantees, And Use Of 'D' And
'SD' Ratings, Dec. 23, 2010
-- Rating Government-Related Entities: Methodology And Assumptions, Dec.