Asia

Hong Kong insurer downgraded

Rating agency Moody’s has downgraded the debt ratings of Hong Kong credit insurer, China Orienwise following the announcement of an investigation into alleged fraud at its parent company Credit Orienwise Group by its board of directors. A court injunction has been obtained against Zhang Kaiyong, the founder, chairman and chief executive of China Orienwise. Moody’s is concerned that, as a result of the ongoing investigation, the company won’t be able to file its June 30 financial statements by the end of September. Sally Yim, Moody’s lead analyst for China Orienwise, said that the agency’s main concerns focused on the state of China Orienwise’s internal controls and corporate governance practices, particularly the lack of disclosure and transparency surrounding the investigation; and the lack of a contingent liquidity plan. Ms Yim said that Moody’s will continue to focus on the impact of the investigation on the company’s management team, business franchise, financial position and liquidity profile.