Bulletin: China Huarong's Leverage Pressure Is Mounting; Investigation On Chairman Has No Immediate Rating Impact

HONG KONG (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today its issuer credit ratings on Chinese distressed-asset manager China Huarong Asset Management Co. Ltd. (China Huarong) and its Hong Kong-based subsidiary China Huarong International Holdings Ltd. (BBB+/Negative/A-2) are not immediately affected by news that China Huarong's chairman and party secretary, Mr. Lai Xiaomin, is under investigation. A statement from the Central Commission for Discipline Inspection (CCDI) said Mr. Lai is being investigated for alleged serious personal disciplinary violations. Mr. Lai joined China Huarong (A-/Negative/A-2) in 2009 and was appointed chairman and party secretary in 2012. He is known for his boldness in leading China Huarong's business development. We currently do not expect a meaningful impact on the company's

...HONG KONG (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today its issuer credit ratings on Chinese distressed-asset manager China Huarong Asset Management Co. Ltd. (China Huarong) and its Hong Kong-based subsidiary China Huarong International Holdings Ltd. (###+/Negative/A-2) are not immediately affected by news that China Huarong's chairman and party secretary, Mr. Lai Xiaomin, is under investigation. A statement from the Central Commission for Discipline Inspection (CCDI) said Mr. Lai is being investigated for alleged serious personal disciplinary violations. Mr. Lai joined China Huarong (A-/Negative/A-2) in 2009 and was appointed chairman and party secretary in 2012. He is known for his boldness in leading China Huarong's business development. We currently do not expect a meaningful impact on the company's creditworthiness. China Huarong is a government-related entity with a very high likelihood of extraordinary government support. The company is 63.36%...

Bulletin