Moody’s cuts Wuzhou to Caa1, debt to Caa2

Moody's Investors Service said it downgraded Wuzhou International Holdings Ltd.’s corporate family rating to Caa1 from B2 and its senior unsecured debt rating to Caa2 from B3.

The outlook is negative.

"The downgrade reflects our concern over Wuzhou's increased level of liquidity risk, arising in turn from the weakening in its contracted sales and uncertainty over its ability to refinance its short-term debt," Moody's assistant vice president and analyst Stephanie Lau said in a news release.

For January through September 2015, Wuzhou's contracted sales amounted to RMB 4.2 billion, down 5% year-on-year, and Moody's expects the company to fall short of Moody's expectation for full-year sales and its own target of RMB 7 billion.

The agency further expects that Wuzhou's contracted sales will remain weak over the next 12 to 18 months as the Chinese economy's slower pace of growth will likely persist.

© 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.