...November 15, 2024 HONG KONG (S&P Global Ratings) Nov. 15, 2024--China Citic Financial Asset Management Co. Ltd.'s investment plan reflects government support for enhancing its regulatory capital base. The strengthened headline capital base does not change our view of the company's creditworthiness. This is because we still expect Citic Financial's financial leverage (ratio of interest-bearing debt to adjusted total equity) to exceed 12x over the next 12-24 months. This is our threshold for a weak assessment of the capital and earnings profile of the China-based distressed asset management company. We exclude unconsolidated equity investments in financial institutions from our capital base. Citic Financial (###-/Stable/A-3) will fund most of its proposed investments (largely in assets linked to state-owned enterprises) with its own liquid assets. These transactions reflect government efforts to restore the company's regulatory capital, in our view. The company is likely to book unrealized...
