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Coface puts China on negative watch

By Hu Yuanyuan (chinadaily.com.cn)
Updated: 2009-02-09 17:28

Coface, an international credit insurance and credit management services group, has downgraded its rating on 22 countries and regions, including Chinese mainland, Hong Kong and Taiwan.

"The credit crisis took a new dimension in the fourth quarter of 2008, when businesses in countries that had managed to hold out were in turn being affected," said Richard Burton, Regional Managing Director, Greater China, Coface.

Chinese mainland has been negative watch-listed for the first time. After being placed on the negative watch list in October 2008, Hong Kong has now been downgraded to "A2".

According to Coface's records, payment performance in Chinese mainland, Hong Kong and Taiwan has been deteriorating, and is likely to worsen this year as the economic slowdown tightens its grip, said Burton.

"Companies should be more careful than ever in tracking their buyers' payment behavior," Burton added.