Fitch cuts Huarong Industrial

Fitch Ratings said it lowered Huarong Industrial Investment & Management Co., Ltd.'s long-term foreign-currency issuer default rating to BB from BBB+. Fitch also cut the rating on the outstanding senior unsecured bonds issued by Huarong Universe Investment Holding Ltd. and guaranteed by Huarong Industrial to BB from BBB+.

“Huarong Industrial has been downgraded by four notches to reflect the three-notch downgrade of its parent, China Huarong Asset Management Co., Ltd., to BBB from A on April 26 and an additional notch owing to Fitch's reassessment of Huarong Industrial's linkage with its parent. We think parent and subsidiary linkages have weakened due to uncertainty over Huarong Industrial's business direction, caused by a delay in the publication of the group's 2020 results due to an undisclosed transaction,” Fitch said in a press release.

The ratings are on rating watch negative.

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