(Yicai Global) July 15 -- The rating outlooks on 16 Chinese-funded banks have been lowered by the international credit rating agency Standard & Poor's and the rating of one of them has been downgraded.
Standard & Poor's cut the rating of Bank of Nanjing Co. to negative from stable last month. The bank demanded that Standard & Poor's revoke its rating and in the end, decided to end cooperation with Standard & Poor's due to their opposing views, according to some media reports.
An anxious moment has come for China's banking sector. Banks' profit growth tumbled from 36.34 percent in 2011 to 2.43 percent last year, despite having risen in the first quarter of this year. The recovery was possibly owing to some contingency factors of the quarterly regulation.
The bad loan ratio among China's banks reached 1.75 percent in the first quarter, up significantly from around 1 percent three years before.