Moody's alters Huarong Financial review to uncertain

Moody's Investors Service said it changed the direction of the ongoing review on China Huarong Financial Leasing Co., Ltd. (Huarong Financial Leasing)'s Baa3 local-currency and foreign-currency long-term issuer ratings to uncertain from downgrade.

Moody's also revised the direction of the ongoing review to uncertain from downgrade for the backed senior unsecured medium-term note program ratings of Huarong Leasing Management Hong Kong Co Ltd., the primary overseas platform of Huarong Financial Leasing.

The revisions follow China Huarong Asset Management Co., Ltd.'s announcement on Nov. 17 that it plans to dispose of its 79.97% shareholding in Huarong Financial Leasing, the agency said.

“The change of the direction of the ongoing review reflects the uncertainty in Huarong Financial Leasing's shareholding structure and its impact on Moody's support assumptions for Huarong Financial Leasing. Huarong Financial Leasing's Baa3 long-term issuer rating currently incorporates a three-notch uplift based on a very high level of indirect support from the government of China (A1 stable) via Huarong AMC, in times of need,” the agency said in a press release.

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