Very high likelihood of government support. Unique market position shaped by regulations. High inherent risks in distressed asset management. Elevated financial leverage in nonbank operation. The stable outlook on China Huarong Asset Management Co. Ltd. (China Huarong) reflects our view that the company will maintain a very important policy role and very strong link to the Chinese government. The stable outlook also reflects our view that the group will maintain its competitive position while limiting its noncore business activities, and the financial leverage of its nonbank business will stay over 6.5x in the next 12-24 months. The stable outlook on China Huarong International Holdings Ltd. (Huarong International) reflects our view that the Hong Kong arm will remain a core subsidiary
