Cyberattack on ICBC’s US unit to not have material impact on parent bank – Fitch

(Reuters) – Ratings agency Fitch on Thursday said the recent cyberattack at ICBC Financial Services will not have a material impact on its Chinese parent, although it highlights growing threats to global payment networks from such incidents.

The U.S. arm of Industrial and Commercial Bank of China Ltd (ICBC) was hit by a ransomware attack last week that disrupted trades and sent ripples through the U.S. Treasuries market, where the bank acts as a broker for hedge funds and other market participants.

“We do not expect the incident to have any immediate impact on the parent bank’s viability rating, nor will the bank’s issuer default rating change as it remains driven by our expectation of support from the Chinese sovereign,” the ratings firm said.

The U.S. unit primarily engages in providing global clearing, execution and financing services to institutional clients.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D’Silva)