Moody's slices Lanzhou Construction

Moody's Investors Service said it downgraded to B3 from B1 the corporate family rating of Lanzhou Construction Investment (Holding) Group Co., Ltd. and the senior unsecured rating on the bonds issued by City Development Co. of Lan Zhou and guaranteed by Lanzhou Construction.

The agency also changed the ratings outlook to negative from ratings under review. This rating action concludes the review for downgrade started on March 31, Moody’s said.

"The downgrade reflects Lanzhou Construction's lack of material progress in resolving its large upcoming debt maturities in the second half of 2022 during the review period. Given its limited access to funding, the heightened liquidity and refinancing risks weaken the company's credit quality to the B3 rating level," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

The outlook reflects the uncertainties over whether Lanzhou Construction can handle its refinancing needs and maintain a sufficient liquidity buffer over the next six to 12 months, the agency said.

© 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.