Moody's to acquire 49% stake in China Cheng Xin International

By Jennifer Chiou

New York, April 13 - Moody's Corp. announced it entered a definitive agreement to acquire 49% of China Cheng Xin International Credit Rating Co. Ltd. from China Cheng Xin Credit Management Co. Ltd.

Moody's added it will have the ability to increase its ownership over time as permitted by Chinese authorities.

The acquisition will be subject to regulatory approvals by the Chinese government.

Moody's said it will provide management expertise, technical support on rating methodologies, and analyst training based on its globally recognized fundamental and structured finance credit rating experience.

Moody's added it will market joint ratings to global issuers in the local Chinese markets with China Cheng Xin International.

"Moody's will benefit from CCXI's [China Cheng Xin International] local market knowledge and CCXI will benefit from Moody's experience in global credit ratings and analysis," Moody's chairman and chief executive officer Raymond W. McDaniel, Jr. said in a news release.

Based in Beijing, China Cheng Xin International was the first domestic credit rating agency created with the approval of the People's Bank of China.

Moody's is the parent company of credit agency Moody's Investors Service.

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