Photo: VCG
China Huarong Asset Management Co. Ltd., one of the country’s “Big Four” bad asset managers, has received a “AAA” rating on its upcoming bond issuance despite the involvement of former Chairman Lai Xiaomin in a corruption scandal, Caixin has learned.
The highest rating was assigned by China Chengxin International Credit Rating Co. Ltd., multiple market sources said. The ratings agency has always issued AAA ratings to Huarong’s bond issuances.
On June 28, Huarong got the green light from the China Banking and Insurance Regulatory Commission to issue bonds of up to 30 billion yuan ($4.3 billion).
The bond sale will take place in the interbank bond market and the issue price is likely to be determined on August 20, the sources said.
Huarong saw its profits collapse last year as it dealt with the fallout of the corruption and bribery scandal that has left Lai facing criminal charges. The company’s net profit in 2018 plummeted 94.3% year-on-year to 1.5 billion yuan, according to its annual report.
Read the full story on Caixin Global later today.
Contact reporter Timmy Shen (hongmingshen@caixin.com)
Related: Bad Debt Dealer Huarong’s Profit Collapses After Corruption Scandal
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