Moody’s shuts its China advisory business, cuts jobs – sources

HONG KONG, Nov 18 (Reuters) – Moody’s & Co (MCO.N) is closing its China consulting business and laying off staff related to the unit at several locations across the country, two people familiar with the matter said on Friday.

Moody’s Analytics, a U.S.-based credit ratings firm, began scaling back its operations in China this week, the sources said. The sources requested anonymity as they were not authorized to speak to the media.

The move, first announced internally on Monday, affects more than 100 employees in Moody’s offices in Beijing, Shanghai and Shenzhen, one of the sources said. Total headcount for the business unit could not be immediately determined.

Moody’s credit ratings business will continue to operate in the world’s second-largest economy, the sources added.

In an emailed statement, a company spokesman said Moody’s said on a recent earnings call that it was “taking steps to align our global workforce with current and anticipated economic conditions.”

The spokesman added that the company continues to maintain a strong presence in China.

Moody’s Analytics provides financial intelligence and analytical tools to domestic and foreign financial institutions.

Its closure in China comes at a time when Chinese banks are increasingly favoring domestic providers, a second source said.

Reporting by Samuel Shen in Shanghai and Georgina Lee and Selena Li in Hong Kong; Editing by Sumeet Chatterjee and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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