China Development Bank Financial Leasing Co. Ltd. (CDBFLC_CDBALF_CDBLFD)
China / Financial Leasing
Active
Issuer Summary
CDB Leasing is a major Chinese financial leasing company 64.40% owned by CDB and has high support expectations as the CDB group’s only leasing platform. The 2025 results confirmed a low non-performing asset ratio, positive earnings, and adequate capital and liquidity, and the issuer’s direct senior credit ranks toward the high end among Chinese quasi-sovereign financial leasing companies. However, CDBALF-guaranteed KW Notes, CDBL Funding notes, and Tier 2 capital bonds differ in claims, guarantees, keepwells, and subordination, and should not be confused with direct guarantees from CDB or the Chinese government.
As of 2026-05-20, based on FY2025 disclosures, CDB Leasing’s credit quality sits toward the high end among Chinese quasi-sovereign financial leasing companies, and the issuer’s direct senior credit is appropriately viewed as a high investment-grade, support-driven credit. The direction is broadly stable, but it is more likely to move gradually in line with the Chinese sovereign, CDB, the support assessment, and the funding environment than to improve solely on the basis of standalone asset-quality gains. The probability of a rapid change in level or direction is not high at present, but market perception and rating outlooks could move over a short period if there is further deterioration in sovereign or parent ratings, acceleration in finance lease NPAs, rapid deterioration in foreign-currency liquidity, or reduced market confidence in keepwell structures.
The largest factor supporting credit quality is the relationship with the CDB group. CDB Leasing is the only leasing platform 64.40% owned by CDB and connects CDB’s policy-finance function with industrial asset finance. CDB’s very large asset base, Chinese government-related shareholder structure, and CDB Leasing’s international ratings give investors reasons to assign high support likelihood. The 2025 financials also do not indicate serious standalone deterioration, with total assets of RMB433.5bn, net profit of RMB5.03bn, a non-performing asset ratio of 0.62%, a capital adequacy ratio of 13.16%, and LCR of 126.13%.
The constraints are that CDB Leasing is a highly leveraged financial leasing company without a deposit base and holds large assets such as aircraft and ships that carry market price volatility. The rise in the finance-lease-related NPA ratio to 1.05% in 2025 is not yet a severe deterioration, but it indicates the possibility of stress in part of the domestic leasing asset base. Dependence on borrowings and bonds is high, and if the assessment of CDB or sovereign support weakens, funding costs could rise even if standalone financials remain stable.
Issuer Reports
Current public reports for this issuer.