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12 Jul 2011
ACCOUNTING CONCERNS at US-listed Chinese companies have spurred Moody's into action. The ratings agency has screened more than 50 companies against 20 red flag categories.
Weak corporate governance, risky business models, fast-growth strategies, poor earnings quality and audit concerns would all trigger the flags, Reuters reports; 49 junk-rated firms triggered at least three alarms, with several tripping 10 or more.
Further reading
"Our ratings already account for the inherent challenges in assessing these Chinese companies: their short history of operations, their diverse industries with limited peers for comparison, their concentrated family ownership structures and their high-growth environments," said Moody's.
Around 80% of companies operating predominantly in China are awarded junk ratings by Moody's; this compares to China itself, which has a sovereign rating of Aa3, one of the highest investment grade levels.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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