We expect China Cinda's increasing leverage following the expansion of its distressed management business to offset an improvement in transparency on its financial investments. We maintain our view that the China-based distressed asset manager has a very high likelihood of receiving extraordinary support from the Chinese government, if needed. We are affirming our 'A-/A-2' issuer credit ratings on China Cinda and its wholly owned core subsidiary Cinda HK. The stable outlook on China Cinda reflects our view that the group will moderate expansion in its non-bank business such that the segment's leverage stays at 7x-8x over the next 12-24 months. The outlook also reflects our view that the company will maintain asset quality in line with peers' over the period.
