Moody’s changes view on China Huarong to stable

Moody’s Investors Service said it changed the outlook on China Huarong Asset Management Co., Ltd. to stable from negative.

“The change of Huarong’s outlook to stable from negative reflects Moody’s view that Huarong will still maintain modest profitability despite higher impairment losses from its weakened asset quality. In addition, the company’s slower asset growth will help stabilize its leverage, and the very high level of government support that it currently receives will likely remain unchanged over the next 12-18 months, minimizing Huarong’s liquidity and refinancing risks,” said Moody’s in a press release.

Moody’s also affirmed Huarong’s A3 rating and its Baa1 long-term senior unsecured debt ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.