Chinese regulator suspends rating agency over Yongcheng default

Moody's-backed Chengxin not allowed to score debt issues for 3 months

The failure of Yongcheng Coal & Electricity Holding Group to redeem a 1 billion yuan bond has helped touch off tremors in China's domestic debt market. © AP

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent

December 29, 2020 22:06 JST

HONG KONG -- Chinese regulators on Tuesday suspended the country's largest credit rating agency for failures they said contributed to the default last month of state-owned Yongcheng Coal & Electricity Holding Group.

Yongcheng's failure to redeem the 1 billion yuan ($152.95 million) bond on Nov. 10, just weeks after a fresh debt sale, helped touch off tremors in China's domestic debt market, the world's second largest.