Fitch removes China Orient from watch

Fitch Ratings said it affirmed China Orient Asset Management Co., Ltd.'s (COAM) long-term foreign- and local-currency issuer default ratings at A, removed the ratings from rating watch negative, on which they were placed on April 5 and assigned a negative outlook.

“COAM was placed on RWN because of a declining capital buffer against the regulatory thresholds amid lingering stress in China's property market. The issuer's 2022 capital adequacy remains above the regulatory threshold, and the issuer has plans to take measures to enhance its capital buffer. We believe the issuer has not reached a level that would lead to a negative rating action, yet a negative outlook reflects the possibility of a negative action if the declining capital buffer trend continues,” Fitch said in a press release.

Additionally, the agency took a similar action on COAM’s subsidiary China Orient Asset Management (International) Holding Ltd.'s (Coamci) affirming its long-term foreign- and local-currency issuer default ratings at A, assigned a negative outlook and removed its ratings from RWN.

Fitch also affirmed Coamci's guaranteed U.S. dollar bonds at A. The bonds were issued by its wholly owned subsidiary, Joy Treasure Assets Holdings Inc., and are guaranteed by Coamci.

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