Moody’s eyes Cinda, others for haircut

Moody’s Investors Service said it placed the ratings of China Cinda Asset Management Co., Ltd. (Cinda AMC), China Orient Asset Management Co., Ltd. (Orient AMC), their subsidiaries including China Cinda (HK) Holdings Co. Ltd. (Cinda HK), Nanyang Commercial Bank, Ltd. (NYCB) and Dongxing Securities Co., Ltd., on review for downgrade. Previously, the outlooks were negative.

The agency also placed the rating of China Chengtong Hong Kong Co. Ltd. (Chengtong HK), a wholly owned subsidiary of China Chengtong Holdings Group Ltd. (CCT Group), on review for downgrade. Previously, the outlook was stable.

This review follows the affirmation of China's issuer rating at A1 and the change in outlook to negative from stable, Moody’s said.

“The review for downgrade is also driven by Moody's assessment of downside risks to the ratings of the state-owned enterprises (SOEs), and their subsidiaries, considering the government will likely prioritize support for SOEs with public policy mandates over highly commercialized SOEs, and 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 SOEs and their subsidiaries' ratings,” the agency said in a press release.

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