Chinese Bad Banks Downgraded by Moody’s as Huarong Cut to Junk

(Bloomberg) — China’s largest bad-debt managers suffered ratings downgrades by Moody’s Investors Service Inc. that cut China Huarong Asset Management Co. Ltd. to junk status, over concerns arising from the property crisis.

Huarong AMC’s long-term rating was reduced one notch to Ba1, which signifies a higher degree of default risk. Three other peers — China Great Wall Asset Management Co. Ltd., China Orient Asset Management Co. Ltd. and China Cinda Asset Management Co. Ltd. — also had their ratings cut Friday by one to two notches.