China Huarong Kept on Watch for Possible Downgrade by S&P
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S&P Global Ratings continues to weigh a potential downgrade of China Huarong Asset Management Co., more than a month after peers cut their grades on the firm.
The credit risk assessor, which has Huarong three notches above junk territory at BBB+, is still awaiting clarity on the transaction which prompted Huarong to delay releasing 2020 results as well as the firm’s overall performance and government backing, S&P analysts wrote in a Wednesday report. Their base case remains that the company has “a very high likelihood of extraordinary government support.”