Moody's downgrades Huarong AMC

Moody's Investors Service said it downgraded the local-currency and foreign-currency long-term issuer ratings of China Huarong Asset Management Co., Ltd. to Baa1 from A3, following the downgrade of its baseline credit assessment to b2 from b1. The ratings remain on review for downgrade.

The agency also lowered the long-term backed senior unsecured debt ratings of China Huarong's offshore financing vehicles, including Huarong Finance 2017 Co., Ltd., Huarong Finance II Co., Ltd. and Huarong Finance 2019 Co., Ltd. to Baa2 from Baa1. These ratings also remain on review for downgrade.

The downgrade of China Huarong's BCA to b2 from b1 and the subsequent downgrade of the ratings, reflect its weakened funding profile due to market volatility and heightened uncertainty surrounding the company, Moody’s said.

On Sunday, the company reported in the domestic interbank market that it would delay publishing its 2020 annual report for its domestic bonds because its auditor would be unable to complete auditing the company's financial statements before Friday, Moody’s noted.

This report follows a March 31 announcement, in which it said it would delay publishing its 2020 annual results because a relevant transaction was still being finalized and the auditor needed more information and time to complete the necessary audit procedures, the agency said.

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