Fitch Ratings has affirmed China Construction Bank (New Zealand) Limited's (CCB NZ) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'A'.

The Outlook is Stable. At the same time, Fitch has affirmed all other ratings.

KEY RATING DRIVERS

IDRS, SUPPORT RATING AND SENIOR DEBT

CCB NZ's ratings reflect an extremely high likelihood of support from the parent, China Construction Bank Corporation (CCB, A/Stable/bb+). CCB's Long-Term IDRs are used as the anchor rating to reflect our view that support will flow from the Chinese government (A+/Stable) through the parent and to CCB NZ if required. The Stable Outlook reflects the Outlook on CCB's ratings.

Fitch's view on the likelihood of support reflects that CCB has provided a deed of guarantee whereby it irrevocably and unconditionally guarantees payment to all unsecured creditors of CCB NZ. The guarantee has no expiration date.

We have not assigned a Viability Rating to CCB NZ because it maintains strong links with the parent through management, strategy and risk controls, and relies heavily on the parent's brand name to attract business. This means a standalone view of the bank is not meaningful.

RATING SENSITIVITIES

IDRS, SUPPORT RATING AND SENIOR DEBT

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:

CCB NZ's ratings are sensitive to changes in CCB's IDRs. Any upgrade to the parent's IDRs is likely to be reflected in CCB NZ's IDRs and debt ratings. Similarly, a revision of the Outlook on CCB's Long-Term IDRs to Positive is likely to result in a revision of the Outlook on CCB NZ's Long-Term IDRs to Positive. The Support Rating cannot be upgraded as it is already at the highest level on Fitch's rating scale.

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:

Any downgrade to the parent's IDRs is likely to be reflected in CCB NZ's IDRs and debt ratings, as would a revision to the Outlook to Negative on CCB's Long-Term IDRs.

Fitch will also review the ratings should the parental guarantee be removed. Any downgrade is likely to be limited to one notch, providing that the parent's ability to provide support and CCB NZ's strategic importance remains unchanged.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579]

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

CCBNZ's IDRs are equalised with CCB's IDRs given our view on the potential for support.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

RATING ACTIONS

ENTITY/DEBT	RATING		PRIOR
China Construction Bank (New Zealand) Limited	LT IDR	A 	Affirmed		A
ST IDR	F1+ 	Affirmed		F1+
LC LT IDR	A 	Affirmed		A
LC ST IDR	F1+ 	Affirmed		F1+
Support	1 	Affirmed		1

senior unsecured

LT	A 	Affirmed		A

senior unsecured

ST	F1+ 	Affirmed		F1+

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

(C) 2020 Electronic News Publishing, source ENP Newswire