Fitch downgrades Dongxing Securities

Fitch Ratings said it downgraded Dongxing Securities Co., Ltd.'s long-term issuer default rating and the rating on the outstanding senior unsecured notes issued by its wholly owned subsidiary, Dongxing Voyage Co. Ltd., to BBB from BBB+. The agency placed the ratings on rating watch negative.

“This rating action comes after Fitch downgraded Dongxing Securities' parent, China Orient Asset Management Co., Ltd. (China Orient) to A- from A and placed the rating on RWN on Jan. 3, 2024,” the agency said in a statement.

China Orient controls a 45% stake in Dongxing and it controls over half the board and top management appointments.

The agency explained, “Any negative changes to China Orient's ratings - which would most likely reflect shifts in the perceived propensity or ability of the state to support China Orient in a timely manner - or to China's sovereign rating are likely to affect Dongxing Securities' ratings by at least the same magnitude.”

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