Fitch Ratings affirmed China Cinda Asset Management's (HKG:1359) long-term issuer default ratings at A- with a stable outlook.
The ratings reflect the ratings agency's expectation of extraordinary government support and the company's policy role in managing distressed assets.
Fitch said Cinda remains China's largest distressed asset manager by asset size and expects the company to play an increasingly important role in supporting financial stability during the country's economic slowdown.
However, it expects earnings to remain under pressure from weaker income growth in the distressed-asset business and elevated credit impairment charges.
The ratings agency said China Cinda's diversified earnings, including contributions from its banking subsidiary and other financial businesses, along with adequate capital and liquidity buffers and perceived government backing, should support its credit profile.