Moody’s: Evergrande unaffected

Moody's Investors Service said that Evergrande Real Estate Group Ltd.'s investment in Shengjing Bank Co. Ltd. (unrated) is credit negative, but will have no immediate impact on its B2 corporate family rating or B3 senior unsecured bond rating.

The outlook remains negative.

Evergrande announced on Feb. 29 that it acquired an aggregate of 324,090,500 Shengjing H shares for a total consideration of about HK$3.9 billion, which is equivalent to a 5.59% stake in Shengjing Bank.

"The investment is credit negative because it raises Evergrande's financial and investment risk," Moody's vice president and senior analyst Franco Leung said in a news release.

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