Very important policy role and very strong link with the government. Unique market position shaped by regulations. Offers diversified financial services. Concentrated exposure to property development. High inherent risks in purchase of distressed assets. The stable outlook over the next 12-24 months reflects our view that China Huarong will retain its "very important" role and "very strong" link with the Chinese government. We also expect the company to maintain its financial profile and its market position in the management of nonperforming assets. We could lower the rating if China Huarong's financial profile deteriorates significantly. Overly aggressive expansion that undermines the company's capitalization, such that the projected RAC ratio is below 5%, would indicate such deterioration. We could also lower the
