Moody's confirms Giti Tire

Moody's Investors Service said it confirmed Giti Tire Co. Ltd.'s B3 corporate family rating.

The outlook is stable.

This confirmation concludes a review that began in July that was driven by concerns about Giti Tire's ability to refinance $200 million in senior secured notes due Jan. 26, 2012, Moody's said.

The agency also said it withdrew the Caa1 bond rating on the $200 million of guaranteed senior secured notes, which have been fully repaid.

The refinancing risk of the senior secured notes is no longer relevant as Giti Tire has repaid them with its raising of a new $225 million secured syndicated loan, Moody's said.

The change to the stable outlook is supported by Giti Tire's performance in the first half of 2011, which also was generally in line with expectations, the agency said.

While the availability of bank credit remains challenging in China, the successful refinancing of the secured notes provides motivation for Giti Tire's bankers to continue providing it with short-term operating finance, Moody's said.

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