Moody's downgrades Sinic

Moody's Investors Service said it downgraded Sinic Holdings (Group) Co. Ltd.’s corporate family rating to Ca from Caa2. The outlook has been changed to negative from under review. This rating action concludes the review for downgrade on Sinic started on Sept. 23.

"The downgrade reflects our expectation of weak recovery prospects for Sinic's noteholders, following its announcement on Oct. 11 that it will likely default on its $246 million bond due on Oct. 18, 2021," said Daniel Zhou, a Moody's analyst, in a press release.

A default on Oct. 18 would trigger a cross default and accelerate the repayment of other debts in the next three to six months, Moody’s warned.

The negative outlook reflects the view that the recovery prospects for Sinic's creditors could weaken further, the agency noted.

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