Moody's trims 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. (Huarong AMC) to Baa3 from Baa2 and its local currency and foreign currency short-term issuer ratings to P-3 from P-2.

In addition, Moody's cut the long-term backed senior unsecured debt ratings of Huarong AMC's offshore financing vehicles – including Huarong Finance 2017 Co., Ltd., Huarong Finance II Co., Ltd. and Huarong Finance 2019 Co., Ltd. – to Ba1 from Baa3, and their long-term backed senior unsecured medium-term note program ratings to (P)Ba1 from (P)Baa3.

Moody's also downgraded Huarong Finance 2019 Co., Ltd.'s short-term backed senior unsecured MTN program ratings to (P)NP from (P)P-3.

The notes issued under the MTN program established by the three offshore financing vehicles are guaranteed by China Huarong International Holdings Ltd. (Huarong International) and supported by keepwell deeds from Huarong AMC.

The entity-level outlook on Huarong AMC and its offshore financing vehicles is stable.

“Today's rating actions reflect Huarong AMC's lowered standalone assessment to caa1 from b3 due to the deterioration of its profitability, capital and asset quality in 2022,” Moody’s said in a news release.

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