Moody’s rates Huarong Finance notes Baa1 (hyb)

Moody's Investors Service said it assigned a Baa1(hyb) senior unsecured debt rating to Huarong Finance II Co., Ltd.'s unsubordinated perpetual securities drawdown under its provisional Baa1 medium-term note program.

Huarong Finance II is an indirect subsidiary of China Huarong Asset Management Co., Ltd., Moody’s said.

The outlook is negative.

The Baa1(hyb) rating for the securities issued under the program reflect China Huarong’s ability and very high willingness to support Huarong Finance II's obligations, the agency said.

Huarong Finance II is wholly owned by China Huarong International Holdings Ltd., which is wholly owned by Huarong Asset, Moody’s explained.

The securities issued by Huarong Finance will be guaranteed by Huarong International and supported by deeds and investment and liquidity support between Huarong Finance, Huarong International and Huarong Asset, the agency said.

Moody’s said it believes Huarong Asset is committed to helping Huarong International meet its payment obligations in the event of a default, maintain Huarong International as its primary overseas subsidiary for investment holdings and fund raising and ensure Huarong Finance and Huarong International are solvent.

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