Very important policy role and very strong link with the government. Unique market position shaped by regulations. High inherent risks in purchase of distressed assets. Elevated financial leverage in non-bank operation. The stable outlook on China Huarong reflects our view that the company will maintain a very important policy role and very strong link to the government. The stable outlook also reflects our view that the group will maintain its competitive position, limit non-core business activities, and that the financial leverage of its non-bank business will stay at 7x-8x over the next 12-24 months. We will lower the rating on China Huarong if: The credit profile of its non-bank business deteriorates significantly. This could occur if the asset management company
