Recognition of Fitch IBCA's Ratings for LAF Purpose

The Hong Kong Monetary Authority (HKMA) announced today that the ratings of Fitch IBCA Inc. (Fitch IBCA) are recognized by the HKMA in assessing the eligibility of HK$ denominated debt issues as Repo securities for discounting under the Liquidity Adjustment Facility (LAF) with immediate effect. At the same time, the recognition of ratings of IBCA is revoked for LAF purpose.

The minimum requirements in respect of the debt ratings assigned by Fitch IBCA for LAF purpose are A- for bank issues and A for non-bank issues. The HKMA reserves the right to make adjustments to these minimum rating requirements from time to time.

Fitch IBCA is formed through the merger of Fitch Investors Service L.P. and IBCA Limited on 2 December 1997. Previously ratings of IBCA Limited were recognized for LAF purpose. IBCA Limited conducted its rating business since 1978. Fitch Investors Service L.P. was established in 1914 and started its rating business in 1922.

Hong Kong Monetary Authority

4 December 1997