Summary: China Cinda Asset Management Co. Ltd.

Very high likelihood of extraordinary government support. Unique market position shaped by regulations. Listed company with better disclosure than peers. Concentrated exposure to property development. High inherent risks in distressed-asset purchases. Rapid asset growth. The stable outlook over the next two years for China Cinda Asset Management Co. Ltd. (Cinda) reflects our view that the company will retain its "very strong" link with and "very important" role for the government. We also expect Cinda to maintain its financial risk profile and strong market position in management of nonperforming assets. We could lower the rating if Cinda's financial risk profile deteriorates significantly. This could be caused by overly aggressive expansion that undermines Cinda's capitalization, such that the company's projected RAC ratio

...Rapid asset growth. Outlook The stable outlook over the next two years for China Cinda Asset Management Co. Ltd. (Cinda) reflects our view that the company will retain its "very strong" link with and "very important" role for the government. We also expect Cinda to maintain its financial risk profile and strong market position in management of nonperforming assets. We could lower the rating if Cinda's financial risk profile deteriorates significantly. This could be caused by overly aggressive expansion that undermines Cinda's capitalization, such that the company's projected RAC ratio is below 5%. We could also downgrade the company if negative information leads us to reassess Cinda's status as a government-related entity. This may include adverse legislative changes that diminish Cinda's role or allow increased competition, weakening Cinda's business position. We may also review Cinda's government link if MoF's ownership drops below 50%. We believe the rating upside is limited for the...

Summary