Moody's eyes SJM for downgrade

Moody's Investors Service said it placed on review for downgrade SJM Holdings Ltd.'s Ba1 corporate family rating and the Ba2 backed senior unsecured rating on the bond issued by Champion Path Holdings Ltd. and guaranteed by SJM. The outlooks were negative before the review for downgrade.

"The review of the ratings for downgrade mainly reflects SJM's delay in refinancing its existing bank loans, which will mature at the end of February 2022. A downgrade of multiple notches may occur if the delay persists," said Sean Hwang, a Moody's assistant vice president and analyst, in a press release.

"While SJM's solid credit quality and long-standing banking relationships support its ability to raise necessary funds, its funding plan is subject to certain regulatory processes and capital market uncertainties," added Hwang.

The agency noted SJM started the refinancing process in the beginning of the year, raised HK$9.3 billion and cut its facilities’ debt to HK$9 billion as of June 30. SJM is seeking new syndicated facilities to refinance the balance.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.