Moody's raised its outlook on Hong Kong-based China Everbright Ltd. to stable from negative while affirming its ratings.
The rating agency said it affirmed the company's long- and short-term issuer ratings at Baa2/P-2. Moody's also affirmed China Everbright's stand-alone assessment at "ba2."
The affirmation and outlook revision reflect the company's standalone assessment, assumption of a high probability of support from its parent China Everbright Group Ltd. and improvement in the credit profiles of the group and its key subsidiaries. The company's stand-alone assessment reflects its increasing franchise in alternative asset management and fundraising ability, strong principal investment to support asset management business growth and good profitability.
The positive factors are offset by China Everbright's high concentration risk, increasing investment risk in principal investment and a rise in leverage, Moody's said.
