Fitch Ratings Assessment
Fitch Ratings has stated that the recent cyberattack on ICBC Financial Services is not anticipated to significantly affect its Chinese parent company. However, the incident underscores the escalating threats to global payment networks posed by such cyber incidents.
The U.S. branch of the Industrial and Commercial Bank of China Ltd (ICBC) experienced a ransomware attack last week, causing disruptions in trade and creating ripples in the U.S. Treasuries market. ICBC serves as a broker for hedge funds and other market participants in this market segment.
Fitch Ratings reassures that there is no immediate expectation of the cyber incident impacting the parent bank’s viability rating. Additionally, the issuer default rating of the bank is expected to remain unchanged, driven by the anticipated support from the Chinese sovereign.
The U.S. unit’s core activities involve providing global clearing, execution, and financing services to institutional clients. Fitch’s analysis underscores the importance of recognizing the broader implications of cyber threats on the stability of global payment networks.
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