Moody's assigns Ba3 to Logan notes

Moody's Investors Service said it assigned a Ba3 rating to Logan Group Co. Ltd.’s (Ba2 stable) proposed U.S. dollar-denominated senior notes.

Logan plans to use the proceeds from the proposed notes to refinance its offshore debt.

“Logan's Ba2 corporate family rating (CFR) reflects its 1) strong brand and proven track record in the Guangdong-Hong Kong-Macao Bay Area (Greater Bay Area), (2) focus on mass-market products, which supports its sales growth and operating cash flow while reducing its reliance on debt funding, and (3) good liquidity,” said Cedric Lai, a Moody’s vice president and senior analyst, in a news release.

“On the other hand, the Ba2 CFR is constrained by Logan's high geographic concentration in southern China, which exposes the company's sales performance to local regulatory and economic changes.”

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