Very high likelihood of government support. Unique market position shaped by regulations. Long track record of distressed asset disposal and restructuring compared with local asset management companies. Deteriorating asset quality in distressed assets. Elevated financial leverage in nonbank business. Earnings recovery hampered by exit of noncore businesses. 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
