Chinese Bad Banks Downgraded by Moody’s as Huarong Cut to Junk
- Sector-wide cut of AMC follows Fitch’s move earlier this year
- Bad-debt managers tapped to aid struggling property builders
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China’s largest bad-debt managers suffered Moody’s Investors Service’s rating downgrades that cut China Huarong Asset Management Co. to junk status, over concerns about the property crisis.
Huarong AMC’s long-term rating was reduced one notch to Ba1. Three other peers - China Great Wall Asset Management Co., China Orient Asset Management Co., China Cinda Asset Management Co. - also had their ratings cut Friday by one to two notches.