Moody’s vows to maintain strong presence in China after reports of downsizing and layoffs
Published: Nov 18, 2022 06:53 PM
A snapshot of Moody's China website

A snapshot of Moody's China website

US credit rating firm Moody's Corp has vowed to maintain a strong presence in China after reports exposed the downsizing of its China consulting business that implicated layoffs of around 100 people.

"As announced during our most recent earnings call, Moody's is taking steps to align our global workforce with current and anticipated economic conditions," a Moody's spokesperson said in a statement sent to the Global Times on Friday.

"Moody's continues to maintain a strong presence in China and contribute constructively to China's sustainable growth and the further development of its domestic markets," the spokesperson stated.

The Friday statement didn't explicitly confirm reports about Moody's move to wind down its consulting business in China.

The credit rating firm is "shutting its China consulting business and is laying off people associated with the unit in multiple locations across the country," Reuters reported on Friday, citing two people with knowledge of the matter. 

The affected business unit was identified as Moody's Analytics, a financial intelligence and analytical tools provider.

The move was first announced internally on Monday, according to the Reuters report, impacting more than 100 people across Moody's Beijing, Shanghai and Shenzhen offices. Total headcount for the analytical arm was not ascertained. 

Moody's has been covering and serving Chinese markets for 25 years, with local presence in Beijing, Shanghai, Hong Kong, Shenzhen and Taipei, according to the company's website. It has more than 550 employees in China.

China has over recent years continued to open up its credit ratings market for overseas investors, as part of a broader push for financial deregulation.

Global Times