Moody's downgrades China's bad banks

China's largest bad-debt managers suffered Moody's Investors Service's rating downgrades that cut China Huarong Asset Management to junk status, over concerns about the property crisis. Huarong AMC's long-term rating was reduced one notch to Ba1. Three other peers - China Great Wall Asset Management, China Orient Asset Management, China Cinda Asset Management - also had their ratings cut on Friday by one to two notches.

Moody's action is the latest alarm sounded over the property sector ills' spillover across the economy, despite Beijing's pledges for support policies. It also resembles a sector-wide downgrade by Fitch Ratings earlier this year.