Moody's lowers Bocom

Moody's Investors Service said it downgraded Bocom International Holdings Co. Ltd.'s long-term issuer rating to Baa1 from A3, with a stable outlook. Previously, the long-term issuer rating was on review for downgrade.

The downgrade concludes Moody's review for downgrade initiated on March 24, the agency said.

“The ratings downgrade reflects Bocom International's significantly weakened capital position and high investment risk with sizeable proprietary investments mostly in bonds and unlisted equity investment, which also resulted in the lowering of its stand-alone assessment to B1 from Ba2,” Moody’s said in a press release.

The stable outlook reflects the risks to the company’s financial profile and support from its parent and the assumption of indirect support from the Chinese government, Moody’s said.

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