On July 28, 2023, S&P Global Ratings assigned its 'AAA (sf)' rating to the class A notes of Anyihua 2023 Phase III Personal Consumption Loan Asset Backed Securities, the first 'AAA (sf)' rating assigned by an international ratings agency to a securitization transaction in China backed by consumer finance assets.

Analyst Andrea Lin joins up to discuss the analysis that went behind rating this transaction. We also discuss our outlook for China's consumer loan ABS sector as a whole.