Moody's: Kingboard view to negative

Moody's Investors Service said it changed the outlook for Kingboard Chemical Holdings Ltd.'s Baa3 corporate family rating to negative from stable.

The negative outlook reflects concerns about Kingboard's strategy toward investments in its property development business in China, Moody's said, a process that will raise its overall business risk profile and cash flow volatility, Moody's noted.

Its increased investments in this industry introduce execution and regulatory risks into its business model, the agency said.

The rating is currently supported by its strong customer orders and healthy cash flow generation, as well as its solid financial profile, the agency added.

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