Delays in regulatory approval are threatening to scupper Moody's bid to take over China's largest ratings company.
U.S. financial services company Moody's may have to shelve its bid to take over China Chengxin International Credit Rating.
The firm, which reached a framework agreement in March to increase its holding in Chengxin from 30 percent to more than 50 percent, has failed to get regulatory clearance, «Bloomberg» reported (behind paywall) citing people familiar with the matter.
The publication's sources said that U.S.-China tensions might be a factor slowing the approval process.
Opening of Financial Sector
In 2018, China eased requirements for top-rated firms seeking to raise funds in the domestic bond market - the world's second-largest.
Moody's is already behind its largest global competitor in the race to enter China – in January, S&P Global Ratings became the first foreign ratings company to receive approval to grade Chinese domestic bonds.
