On January 17, Moody's Investors Service, a leading international rating agency, awarded long-term Baa3 and short-term prime-3 foreign and local currency issuer ratings to Guangzhou AMC under Yuexiu Group with a stable rating outlook.
This is the first time Moody's has awarded a rating to Guangzhou AMC, noting that Guangzhou AMC has relatively low leverage compared to other Chinese non-performing asset managing companies, especially after the completion of RMB 2 billion in capital injections in October 2019, the tangible common equity/tangible asset ratio rose to about 20%, with high levels of support from shareholders and banks, which will effectively mitigate the refinancing risk of Guangzhou AMC.
Moody's said it expected the quality of its asset portfolio to be better than that of local asset management companies in other provinces, given that Guangzhou AMC mainly disposed no-performing assets in Guangdong Province. Moody's also recognizes the corporate governance of Guangzhou AMC.
Founded in April 2017, Guangzhou AMC is the second local asset management company in Guangdong Province. Its shareholders include Yuexiu Financial Holdings, Technology Financial Group and Hengjian Investment Holding three large state-owned enterprises. The company's main business is to acquire and dispose of non-performing assets from various financial institutions, and to reorganize and activate the non-performing assets. After nearly three years of rapid development, Guangzhou AMC has gained a good brand reputation and wide visibility in Guangdong Province, and has become an important force in Guangdong Province to resolve financial risks and promote the transformation of the real economy.
