...April 9, 2019 HONG KONG (S&P Global Ratings) April 9, 2019--S&P Global Ratings said today that Qingdao Conson Development (Group) Co. Ltd.'s (QCD) potential losses in its financial services segment may affect the level of government support for the company. Although we continue to see an extremely high likelihood of extraordinary government support to QCD, we do not expect such support to cover the financial services subsidiary's bad debt losses, due to the limited policy nature of this segment. Nevertheless, QCD's financial services segment is still relatively small. It accounts for less than 4% of the company's total assets as of the end of 2017. We therefore believe our rating on QCD (###/Stable/--) would be unaffected by the segment's performance. In our view, QCD's financial services segment faces rising credit risks amid China's recent slower economic growth and uncertain trade environment. Over the past several years, QCD has expanded its financial leasing, commercial factoring,...
