Moody’s sees China Cinda negatively

Moody’s Investors Service said it revised its outlook for China Cinda Asset Management Co., Ltd. and China Orient Asset Management Co., Ltd. to negative from stable and affirmed their A3 ratings. The agency also affirmed the ratings on the companies' backed senior unsecured medium-term note programs by their offshore subsidiaries and on the backed senior unsecured notes issued by Charming Light Investments Ltd.

“The outlook change to negative from stable reflects (1) the deterioration so far seen in the operating environment of Chinese distressed asset management companies (AMCs); and (2) Moody's expectation that the companies' asset quality, profitability and therefore capitalization could weaken given their exposure to the property sector, whose outlook remains negative because of weak sales and heightened default risk among property developers; and from their other exposures due to the economic slowdown in China,” the agency said in a press release.

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