Moody’s eyes Chinese issuers for trim

Moody's Investors Service said it the ratings of four state-owned enterprises (SOEs) owned by regional and local governments on review for downgrade. Previously, the outlooks were stable for Guangxi Beibu Gulf International Port Group,Guangxi Investment Group Co. Ltd. and Hualu Holdings Co., Ltd. and negative for Shum Yip Group Ltd.

These rating actions follow the decision to affirm China's issuer rating at A1 and change the outlook to negative from stable, the agency said.

"The review for downgrade is driven by Moody's assessment of downside risks to the ratings of these local SOEs, considering the government will likely prioritize support for SOEs owned by the central government over local SOEs, those with public policy mandates over highly commercialized SOEs, and those with high strategic importance such as companies providing national security and key infrastructure. This could lead to a reduction of the support uplift incorporated in these companies' ratings," said Clement Wong, a Moody's associate managing director, in a press release.

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