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China's Huarong Asset Mgt disagrees with rating downgrade

HONG KONG, April 30 (Reuters) - A senior official from Chinese state-owned bad loan giant China Huarong Asset Management Co said on Friday the company did not agree with downgrading decisions by international rating agencies this week, and it is well prepared to pay its bonds.

Moody’s downgraded the local and foreign currency long-term issuer ratings of China Huarong to Baa1 from A3. Earlier this week Fitch Ratings took more aggressive action, downgrading Huarong’s long-term rating by three notches to ‘BBB.’

“The decision on a rating downgrade is too pessimistic and the judgment lacks factual basis,” China Huarong’s vice president Xu Yongli told the state-owned Shanghai Securities News in an interview posted on the company’s official Wechat account.

China Huarong and its units have repaid the principal and interest on domestic and offshore bonds due between April 1 and 28, Xu said, adding that the company operates normally with sufficient liquidity. (Reporting by Meg Shen Editing by Peter Graff)

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