Moody’s downgrades Cinda

Moody's Investors Service said it downgraded China Cinda Asset Management Co., Ltd.'s (Cinda AMC) local-currency and foreign-currency long-term issuer ratings to Baa1 from A3. The agency confirmed Cinda AMC's B1(hyb) foreign-currency preferred stock rating.

Moody's also lowered to (P)Baa1 from (P)A3 the long-term backed senior unsecured medium-term note program ratings of Cinda AMC's offshore financing vehicles, China Cinda Finance (2015) II Ltd. and China Cinda Finance (2017) II Ltd.

The outlook on Cinda AMC and its offshore financing vehicles is negative. Previously, the ratings were under review for downgrade. This rating action concludes the review for downgrade started on Dec. 7, Moody’s said.

“The downgrade of Cinda AMC's ratings reflects Moody's assessment of lower support from the Chinese government (A1 negative) for Cinda AMC, which resulted in a narrowing of the support uplift to four notches from five,” the agency said in a press release.

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