Fitch Ratings changed the outlooks of six China-based banks to stable from negative while also affirming their ratings, according to a Tuesday release.

The banks include China Merchants Bank (HKG:3968, SHA:600036) and six state-owned entities, namely Industrial and Commercial Bank of China (HKG:1398, SHA:601398), China Construction Bank (HKG:0939, SHA:601939), Bank of China (HKG:3988, SHA:601988), Agricultural Bank of China (HKG:1288, SHA:601288), and Bank of Communications (HKG:3328, SHA:601328).

The outlook revision reflects Fitch's view of an unchanged likelihood of extraordinary support for the banks even with China's sovereign downgrade.

The government's capital injection into the state banks also boosts the notion of high support likelihood, Fitch said.

The government maintains financial flexibility to anchor the financial sector despite increased deficits and surging debt, Fitch said.

The banks also improved their linkage with the government due to their amplified policy roles, the rating agency said.