Benzinga - by Piero Cingari, Benzinga Staff Writer.
Moody’s Investors Service has reportedly directed its China-based staff to work from home, a development closely preceding its decision to lower China’s sovereign credit rating outlook from neutral to negative this week.
According to the Financial Times, which first reported the news, department chiefs at Moody’s offices in Beijing and Shanghai advised non-administrative personnel to avoid the office for the week.
Similarly, it’s been reported that analysts from Moody’s in Hong Kong have been advised to avoid travel to the Chinese mainland for the time being.
This directive is widely interpreted by employees as a safeguard against possible government inspections following the credit rating decision.
An employee at Moody’s in China told the FT there was a general understanding among staff about the underlying reason of the directive. The source admitted that employees were concerned about potential government inspections.
A spokesperson for Moody’s, contacted by the FT, emphasized the organization’s commitment to the confidentiality and integrity of the ratings process but refrained from commenting on any specific credit ratings or issuers.
Benzinga has reached out to Moody’s for comment on the report.
Large-cap Chinese stocks, as tracked by the iShares China Large-Cap ETF (NYSE:FXI), are down 3.8% this week, falling to levels last seen in early November 2022 at the onset of the reopening rally.
Read also: China Debt Outlook: Moody’s Cuts To Negative As Property Crash Continues To Weigh
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