China Cinda's pending acquisition of Nanyang Commercial Bank may create substantial goodwill and thus significantly hit the distressed-asset manager's capitalization, in our view, but it could also diversify the wider group's business mix and improve its risk profile. We are keeping the 'A-/A-2' ratings on China Cinda on CreditWatch with negative implications to reflect some uncertainty on how and when the company could replenish its capitalization to a level that would underpin the current rating. We are also keeping the 'BBB+/A-2' ratings on China Cinda HK on CreditWatch with negative implications, given the rating linkages stemming from the company's status as a highly strategic subsidiary. In addition, we are keeping the 'cnAA/cnA-1' Greater China regional scale rating on China Cinda
