Moody’s lowers Gemdale

Moody’s Investors Service said it lowered Gemdale Corp. corporate family rating to B3 from Ba3 and the CFR of Famous Commercial Ltd., Gemdale's wholly-owned subsidiary, to Caa1 from B1. The agency also downgraded the backed senior unsecured rating on the bonds to Caa1 from B1 and the backed senior unsecured rating to (P)Caa1 from (P)B1 on the medium-term note (MTN) program issued by Gemdale Ever Prosperity Investment Ltd. and guaranteed by Famous.

Finally, Moody’s revised the outlook to negative from under review. The agency launched its review for downgrade on Aug. 28.

"The rating downgrade reflects Gemdale's materially weakened credit profile and high refinancing risks due to its declining contracted sales, deteriorating liquidity and large amount of debt maturing over the next 12 to 18 months," said Kelly Chen, a Moody's vice president and senior analyst, in a press release.

"The negative outlook reflects uncertainties over the company's ability to improve its funding access and operations, amid uncertain recovery prospects for China's property market," Chen added.

© 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.