China Huarong Leaves Rating Firms Guessing on State Support
- Moody’s cuts Huarong to Baa1 from A3, remain on review
- Downgrade follows Fitch’s earlier three-notch cut to BBB
The China Huarong Asset Management Co. headquarters in Beijing on April 21.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
Moody’s Investors Service became the second major ratings firm to downgrade China Huarong Asset Management Co. this week amid a lack of visibility over the central government’s support for the embattled bad-debt manager.
Huarong’s credit rating was lowered to Baa1 from A3, Moody’s said in a statement Thursday, adding the firm remains on watch for further downgrade. The cut reflected the company’s weakened funding ability due to market volatility and increased uncertainty over its future, according to the statement. The move follows Fitch Ratings, which reduced its main rating on Huarong by three notches to BBB early this week.